1985-53 CRA - Laserfiche WebLink

Home Browse Search

. . . right-of-way for public utilities, or other similar uses) to public bodies or other persons or entities whose property is tax exempt, unless such disposition will not result in the security of the Bonds or the rights of Bondholders being substantially impaired, as shown by an Opinion of Counsel, based upon the certificate or opinion of an Independent Financial Consultant appointed by the Agency. Covenant 9. Protection of Security and Rights of Bondholders; No Arbitrage. The Agency covenants and agrees to preserve and protect the security of the Bonds and the rights of the Bondholders and to contest by court action or otherwise (a) the assertion by any officer of any government unit or any other person whatsoever against the Agency that (i) the Law is unconstitutional or (ii) that the Pledged Revenues pledged hereunder cannot be paid to the Agency for the debt service on the Bonds, or (b) any other action affecting the validity of the Bonds or diluting the security therefor, or (c) any assertion by the United States of America or any department or agency thereof or any other person that the interest received by the Bondholders is taxable under federal income tax laws by reason of any action of the Agency. The Agency covenants and agrees to take no action which, in the Opinion of Counsel, would result in (a) the Pledged Revenues being withheld unless the withholding is being contested in good faith, and (b) the interest received by the Bondholders becoming taxable under federal income tax laws. The Agency covenants and agrees that it will make no use of the proceeds of the Bonds at any time during the term thereof which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 103(c) or "consumer loan bonds" within the meaning of Section 103(0) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations adopted thereunder by the Internal Revenue Service, and the Agency hereby assumes the obligation to comply with Section 103(c) and Section 103(0) and the regulations throughout the term of the Bonds. Covenant 10. Compliance with Law. The Agency covenants that it will comply with the requirements of the Law. Without limiting the generality of the foregoing, the Agency covenants and agrees to file all required statements and hold all public hearings required under Section 33334.6 and 33675 of the Law to assure compliance by the Agency with its covenants hereunder. Covenant 11. Limitation on Indebtedness. The Agency covenants and agrees that is has not and will not incur any loans, obligations or indebtedness repayable from Pledged Revenues such that the total aggregate debt service on said loans, obligations or indebtedness incurred from and after the date of adoption of the Redevelopment Plan, when added to the total aggregate debt service on the Bonds, will exceed the maximum amount of Pledged Revenues to be divided and allocated to the Agency pursuant to the Redevelopment Plan. 12-02-85 9559p/228l/0l -29-