Agenda - Council - 07/12/2022 - Laserfiche WebLink

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Additional Indebtedness of the Company Unless it obtains prior written consent of the Majority Bondholder(s) and an amendment to the Lease providing for additional Lease Revenues sufficient to pay the principal, interest and any related fees for such Additional Bonds and an amendment to the Pledge Agreement and the Mortgage providing coverage for such additional Indebtedness,the Company shall not incur any Indebtedness other than(a)the Indebtedness with respect to the Series 2022 Bonds, or (b) Additional Bonds issued pursuant to the Indenture. See"SECURITY FOR THE SERIES 2022 BONDS—Additional Bonds"and"APPENDIX F— DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT—Additional Bonds and Additional Indebtedness"in this Official Statement. Additional Indebtedness of the Charter School The Charter School has covenanted in the Pledge Agreement that it will not incur any indebtedness unless it receives the written consent of the Majority Bondholder or the Charter School can satisfy certain requirements described in the Loan Agreement and Pledge Agreement. Long-Term Indebtedness.Pursuant to the Pledge Agreement,other than Indebtedness to be incurred to refund all or a portion of the Series 2022 Bonds, the Charter School may only incur Long-Term Indebtedness with the prior written consent of the Majority Bondholder. Purchase Money Indebtedness or Lease Obligation. The Charter School may incur Long-Term Indebtedness or lease obligations for the purchase of fixtures or equipment ("Purchase Money Indebtedness") without regard to the limitations set forth in the Indenture and Pledge Agreement if the Charter School certifies in a written statement delivered to the Trustee and the Majority Bondholder that: (i) such Purchase Money Indebtedness is secured solely by a security interest in personal property financed with such Purchase Money Indebtedness; (ii) the aggregate payments required to be made by the Charter School in each Fiscal Year with respect to all Purchase Money Indebtedness incurred does not exceed five percent (5%) of the Pledged Revenues, as reported in the most recent audited financial statements of the Charter School, determined as of the date such Purchase Money Indebtedness is to be incurred; (iii) such Purchase Money Indebtedness amortizes over a period of not more than sixty (60) months; and (iv) the Charter School certifies that the incurrence of such Purchase Money Indebtedness will not cause it to be in violation of the operating covenants of the Charter School. Short-Term Indebtedness. The Charter School may only incur Short-Term Indebtedness in an amount that does not exceed the greater of(i) the dollar amount of the deferral from the State for the immediately prior Fiscal Year or the current Fiscal Year, or(ii) 10% of the Gross Revenues of the Charter School for the immediately prior fiscal year. The Line of Credit and any future extension of the Line of Credit must comply with such limitations. Except as provided in the Intercreditor Agreement, any Short- Term Indebtedness incurred by the Charter School must be subordinate to the lien of the Trustee and may not be secured by any security interest in or lien against the School Facility, any Building Lease Aid, Contributions or any Gross Revenues. See "APPENDIX F — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT — Additional Bonds and Additional Indebtedness" and "—Various Operating Covenants of the School"in this Official Statement. See "APPENDIX F — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT — Additional Bonds and Additional Indebtedness" and "— Various Operating Covenants of the School"in this Official Statement. 19