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SA-3 - RESO TAX ALLOCATION BOND
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SA-3 - RESO TAX ALLOCATION BOND
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Last modified
7/12/2018 5:35:37 PM
Creation date
7/12/2018 5:27:26 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
SA-3
Date
7/17/2018
Destruction Year
2023
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of the provider of such instrument to honor a claim or draw thereon or the failure of such <br />provider to honor any such claim or draw. <br />(e) Upon a failure to pay Policy Costs when due or any other breach of the <br />terms of this Section, the 2018 Bond Insurer shall be entitled to exercise any and all legal <br />and equitable remedies available to it, including those provided under the Indenture, other <br />than (i) acceleration of the maturity of the Series 2018 Bonds, if any, or (ii) remedies <br />which would adversely affect owners of the Series 2018 Bonds. <br />(f) The Indenture shall not be discharged until all Policy Costs owing to the <br />2018 Bond Insurer shall have been paid in full. The Agency's obligation to pay such <br />amounts shall expressly survive payment in full of the Series 2018 Bonds. <br />(g) The Agency shall include any Policy Costs then due and owing the 2018 <br />Bond Insurer in the calculation of the additional bonds test. <br />(h) The Agency will pay or reimburse the 2018 Bond Insurer any and all <br />reasonable charges, fees, costs, losses, liabilities and expenses which the 2018 Bond <br />Insurer may pay or incur, including, but not limited to, fees and expenses of attorneys, <br />accountants, consultants and auditors and reasonable costs of investigations, in <br />connection with (i) any accounts established to facilitate payments under the 2018 <br />Reserve Policy, (ii) the administration, enforcement, defense or preservation of any rights <br />in respect of the Indenture or the Related Documents, including defending, monitoring or <br />participating in any litigation or proceeding (including any bankruptcy proceeding in <br />respect of the Agency) relating to the Indenture or any other Related Document, any <br />party to the Indenture or any other Related Document or the transactions contemplated by <br />the Related Documents, (iii) the foreclosure against, sale or other disposition of any <br />collateral securing any obligations under the Indenture or any other Related Document, if <br />any, or the pursuit of any remedies under the Indenture or any other Related Document, <br />to the extent such costs and expenses are not recovered from such foreclosure, sale or <br />other disposition, (iv) any amendment, waiver or other action with respect to, or related <br />to the Indenture, the 2018 Reserve Policy or any other Related Document whether or not <br />executed or completed, or (v) any action taken by the 2018 Bond Insurer to cure a default <br />or termination or similar event (or to mitigate the effect thereof) under the Indenture or <br />any other Related Document; costs and expenses shall include a reasonable allocation of <br />compensation and overhead attributable to time of employees of the 2018 Bond Insurer <br />spent in connection with the actions described in clauses (ii) through (v) above. The <br />2018 Bond Insurer reserves the right to charge a reasonable fee as a condition to <br />executing any amendment, waiver or consent proposed in respect of the Indenture or any <br />other Related Document. Amounts payable by the Agency hereunder shall bear interest at <br />the Late Payment Rate from the date such amount is paid or incurred by the 2018 Bond <br />Insurer until the date the 2018 Bond Insurer is paid in full. <br />(i) The obligation of the Agency to pay all amounts due to the 2018 Bond <br />Insurer shall be an absolute and unconditional obligation of the Agency and will be paid <br />or performed strictly in accordance with the provisions of this Section, irrespective of (i) <br />any lack of validity or enforceability of or any amendment or other modifications of, or <br />4150-2542-5420.7 34 <br />40990-25 <br />SA -3-52 <br />
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