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

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compliance with the recommendations of the Independent Consultant and the Trustee shall be fully protected in relying on such written certification. If,commencing with the Fiscal Year ending June 30,20[23],and each Fiscal Year thereafter,(i)the Charter School's amount of Cash on Hand is less than [ninety (90)] Days Cash on Hand and the Charter School's Net Income Available for Debt Service is less than one hundred ten percent (110%) of the Principal and Interest Requirements on Long-Term Indebtedness during such Fiscal Year(including below 1.0/1), or(ii)the Charter School's amount of Cash on Hand is more than [ninety(90)] Days Cash on Hand and the Charter School's Net Income Available for Debt Service is less than one hundred percent (100%) of the Principal and Interest Requirements on Long-Term Indebtedness during such Fiscal Year then,upon written direction of the Majority Bondholder, the Charter School will promptly select an Independent Consultant in accordance with the provisions of the Pledge Agreement,to review and analyze the operations and administration of the Charter School, including the marketing programs of the Charter School, inspect the School Facility, and submit to the Charter School, the Trustee and the Majority Bondholder written reports, and make such recommendations as to the operation and administration of the Charter School's charter school as such Independent Consultant deems appropriate, including any recommendation as to a revision of the methods of operation thereof. The Charter School agrees to follow the recommendations of the Independent Consultant and,to the fullest extent allowed by law and its Charter Contract, to adopt and carry out such recommendations. If requested, the Charter School shall provide the Trustee with a written certification that the Charter School is, to the fullest extent allowed by law and its Charter Contract, in compliance with the recommendations of the Independent Consultant and the Trustee shall be fully protected in relying on such written certification. Notwithstanding preceding paragraphs, regardless of whether the Charter School has retained an Independent Consultant, if at the end of the Fiscal Year ending June 30, 20[24], or any subsequent Fiscal Year,the Net Income Available for Debt Service as of the end of such Fiscal Year is less than one hundred percent(100%)of the Principal and Interest Requirements on Long-Term Indebtedness for such Fiscal Year (as evidenced by the Charter School's audited financial statements for such Fiscal Year), then the Trustee will give notice thereof to the Registered Owners and EMMA and the Majority Bondholder may direct the Trustee to declare an Event of Default under the Pledge Agreement. In the absence of direction by the Majority Bondholder,the Trustee may take the action described in the preceding sentence Capital Repair and Replacement Fund. The Company has covenanted to deposit a portion of the Lease Payment to be made by the Charter School to the Company to the Capital Repair and Replacement Fund established pursuant to the Indenture in an amount equal to the Monthly Deposit (as defined in APPENDIX F). Amounts in the Capital Repair and Replacement Fund will be used by the Company for the payment of items of repair, improvement, and replacement with respect to the School Facilities,which constitute capital expenditures under Generally Accepted Accounting Principles or which constitute major periodic repair or maintenance of the School Facilities, such as the annual painting or recarpeting a section of the School Facilities (as opposed to incidental repairs). See "APPENDIX F — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS"in this Official Statement. Capital Assessment Plan. Commencing in the Fiscal Year ending June 30, 20[27], and by the end of each fifth year thereafter, the Company agrees to cause the Charter School to furnish to the Trustee and EMMA(and to the Issuer,upon request),within 30 days of completion, a five-year comprehensive capital assessment plan approved by the governing body of the Company(which may be sent by Electronic Means as defined in the Indenture)to be prepared by an independent engineer,building inspector or other qualified professional selected by the Company with a reputation for skill and expertise with respect to the design, maintenance or construction of educational facilities with respect to the Company's capital facilities, detailing the condition and projected sources of funding such needs. The Company shall budget for such capital needs beginning in the Fiscal year following delivery of the capital assessment plan such that the 21