Lease Agreement- City of Brea - Laserfiche WebLink

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ARTICLE IV LEASE OF LEASED PREMISES; TERM OF THIS LEASE AGREEMENT; LEASE PAYMENTS Section 4.1. Lease of Leased Premises. The Authority hereby leases the Leased Premises to the City, and the City hereby leases the Leased Premises from the Authority,upon the terms and conditions set forth in this Lease Agreement. Section 4.2. Term of Lease. This Lease Agreement shall take effect on the date hereof, and shall end on the earlier of August 1, 2006, or such earlier date on which the Bonds shall no longer be Outstanding under the Indenture. If, on August 1, 2006, the Indenture shall not be discharged by its terms or if the Lease Payments payable hereunder shall have been abated at any time and for any reason, then the Term of this Lease Agreement shall be extended until there has been deposited with the Trustee an amount sufficient to pay all obligations due under the Lease Agreement, but in no event shall the Term of this Lease Agreement extend beyond August 1, 2016. Notwithstanding the foregoing, the Term of the Lease Agreement shall not end so long as any amounts are owed to the Municipal Bond Insurer with respect to the Municipal Bond Insurance Policy. Section 4.3. Lease Payments. (a) Obligation to Pay. In consideration of the lease of the Leased Premises from the Authority hereunder and subject to the provisions of Section 6.2, the City agrees to pay to the Authority, its successors and assigns, as rental for the use and occupancy of the Leased Premises during each Fiscal Year, the Lease Payments (denominated into components of principal and interest) for the Leased Premises in the respective amounts specified in Exhibit C hereto, to be due and payable on the respective Lease Payment Dates specified in Exhibit C hereto. Any amount held in the Bond Fund, the Interest Account or the Principal Account allocable to the City on any Lease Payment Date shall be credited towards the Lease Payment then due and payable. The Lease Payments coming due and payable in any Fiscal Year shall be for the use of the Leased Premises for such Fiscal Year. (b) Rate on Overdue Payments. In the event the City should fail to make any of the payments required in this Section 4.3, the payment in default shall continue as an obligation of the City until the amount in default shall have been fully paid, and the City agrees to pay the same with interest thereon, from the date of default to the date of payment at the highest rate of interest borne by any Outstanding Bond. Such interest,if received, shall be deposited in the Bond Fund. (c) Fair Rental Value. The Lease Payments and Additional Payments coming due and payable in each Fiscal Year shall constitute the total rental for the Leased Premises for each Fiscal Year and shall be paid by the City in each Fiscal Year for and in consideration of the right of the use and occupancy of, and the continued quiet use and enjoyment of, the Leased Premises during each Fiscal Year. The Authority and the City hereby agree and determine that the total Lease Payments do not exceed the fair rental value of the Leased Premises. In making such determination, consideration has been given to the obligations of the parties under this Lease Agreement, the value of the Leased Premises,the uses and purposes which may be served by the Leased Premises and the benefits therefrom which will accrue to the City and the general public. -8-