Indenture of Trust (1996) - Laserfiche WebLink

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Section 6.07. Tax Covenants. (a) Private Business Use Limitation. The Authority shall assure that the proceeds of the Bonds..are_not.use_din a manner.which_wauld_cause the Bonds to be "private activity bonds"_ within the meaning of section 141(a) of the Code. (b) Private Loan Limitation. The Authority shall assure that no more than five percent (5%) of the proceeds of the Bonds are used, directly or indirectly, to make or finance a loan (other than loans constituting nonpurpose obligations as defined in the Code or constituting assessments) to persons other than state or local government units. (c) Federal Guarantee Prohibition. The Authority shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Bonds to be "federally guaranteed"within the meaning of section 149(b)of the Code. (d) No Arbitrage. The Authority shall not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the Bond proceeds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date,would have caused the Bonds to be "arbitrage bonds"within the meaning of section 148(a) of the Code. (e) Rebate of Excess Investment Earnings to United States. The Authority shall take any and all actions necessary to assure compliance with section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Bonds. Payment of any amounts due under such section 148(f) shall be made by the Authority from amounts provided by the Member under Section 5.10(d) of the Lease Agreements. In order to provide for the administration of this subsection (e), the Authority may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the Authority may deem appropriate. Section 6.08. Collection of Amounts Due Under Lease Agreements. The Trustee shall promptly collect all amounts due from the Members pursuant to the Lease Agreements. Subject to the provisions of Article VIII, the Trustee shall enforce, and take all steps, actions and proceedings which the Trustee determines to be reasonably necessary for the enforcement of all of its rights thereunder as assignee of the Authority and for the enforcement of all of the obligations of the Members under the Lease Agreements. The Authority shall not amend, modify or terminate any of the terms of the Lease Agreements,or consent to any such amendment,modification or termination,without the prior written consent of the Trustee. The Trustee shall give such written consent only if (a) in the opinion of Bond Counsel, such amendment, modification or termination will not materially adversely affect the interests of the Owners, or (b) the Trustee first obtains the written consent of the Owners of a majority in aggregate principal amount of the Bonds then Outstanding to such amendment,modification or termination. Section 6.09.Continuing Disclosure. (a) The Authority shall timely supply the information required by section 6599.1 of the California Government Code to the California Debt Advisory Commission ("CDAC"), all such information to be supplied annually and at such other time as required by said section 6599.1 on forms to be provided by CDAC or at such other time and in such other manner as shall comply with the provisions of said section 6599.1. _29_