HomeMy WebLinkAbout2011-03-08 - AGENDA REPORTS - REPAYMENT RDA 2008 NOTE (2)ARTICLE V
EVENTS OF DEFAULT AND REMEDIES
Section 5.01 Events of Default and Acceleration of Maturities. The following
events shall constitute Events of Default hereunder:
(a) Failure by the Agency to pay the principal of or interest on the Notes when and
as the same shall become due and payable:
(b) Failure by the Agency to observe and perform any of the covenants, agreements
or conditions on its part contained in this Loan Agreement, other than as referred to in the
preceding clause (a), for a period of thirty (30) days after written notice specifying such failure
and requesting that it be remedied has been given to the Agency by the City; provided, however,
that if in the reasonable opinion of the Agency the failure stated in such notice can be corrected,
but not within such thirty (30) day period, such failure shall not constitute an Event of Default if
corrective action is instituted by the Agency within such thirty (30) day period and thereafter is
diligently pursued until such failure is corrected.
(c) The filing by the Agency of a petition or answer seeking reorganization or
arrangement under the federal bankruptcy laws or any other applicable law of the United States of
America, or if a court of competent jurisdiction shall approve a petition, filed with or without the
consent of the Agency, seeking reorganization under the. federal bankruptcy laws or any other
applicable law of the United States of America, or if, under the provisions of any other law for the
relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the
Agency,or of the whole or any substantial part of its property.
If an Event of Default has occurred and is continuing, the City may, (a) declare the
principal of the Notes, together with accrued interest on all unpaid installments thereof, to be due and
payable immediately, and upon any such declaration the same will become immediately due and payable,
anything in this Loan Agreement to the contrary notwithstanding, and (b) exercise any other remedies
available to the City in law or equity arising hereunder. hninediately upon becoming aware of the
occurrence of an Event of Default under this Loan Agreement, the City shall give notice of such Event of
Default to the Agency by telephone, telecopier or other telecommunication device, promptly confirmed in
writing. This provision, however, is subject to the condition that if, at any time after the principal of the
Notes has been so declared due and payable, and before any judgment or decree for the payment of the
moneys due has been obtained or entered, the Agency will deposit with the City a sum sufficient to pay
all installments of principal of the Notes matured prior to such declaration and all accrued interest
thereon, with interest on such overdue installments of principal and interest at the net effective rate then
borne by the Notes, and any and all other defaults known to the City (other than in the payment of
principal of and interest on the Notes due and payable solely by reason of such declaration) shall have
been made good or cured to the satisfaction of the City or provision deemed by the City to be adequate
shall have been made therefor, then, and in every such case, the City may, by written notice to the
Agency, rescind and annul such declaration and its consequences. However, no such rescission and
annulment shall extend to or shall affect any subsequent default, or shall impair or exhaust the right or
power consequent thereon.
Section 5.02 No Waiver. Nothing in this Article V or in any other provision of this
Loan Agreement, shall affect or impair the obligation of the Agency, which is absolute and unconditional,
to pay from the legally availablefunds of the Agency pledged hereunder, the principal of and interest on
the Notes to the City when due, as herein provided, or affect or impair the right of action, which is also
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