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<br />. <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />and desirable to secure the Bonds and will tend to make them <br />more marketable; provided, however, that the Covenants do not <br />require the Agency to expend any funds other than the Pledged <br />Tax Revenues; <br /> <br />Covenant 1. Complete Redevelopment Project; <br />Amendment to Redevelopment Plan, The Agency covenants and <br />agrees that it will diligently carry out and continue to <br />completion in a sound and economical manner, with all <br />practicable dispatch, the Redevelopment Project in accordance <br />with its duty to do so under and in accordance with the Law and <br />the Redevelopment Plan, The Redevelopment Plan may be amended <br />as provided in the Law but no amendment shall be made unless it <br />will not substantially impair the security of the Bonds or the <br />rights of the Bondholders, as shown by an Opinion of Counsel <br />addressed to the Agency, Fiscal Agent and Bond Insurer, based <br />upon a certificate or opinion of an Independent Financial <br />Consultant appointed by the Agency and unless the Bond Insurer <br />shall have consented thereto in writing, <br /> <br />Covenant 2. Use of Proceeds, Management and <br />Operation of Properties. The Agency covenants and agrees that <br />the proceeds of the sale of the Bonds will be deposited and <br />used as provided in this Resolution and that it will manage and <br />operate all properties owned by it comprising any part of the <br />Redevelopment Project Area in a sound and businesslike manner. <br /> <br />Covenant 3, No Priority. The Agency covenants and <br />agrees that it will not issue any obligations payable, either <br />as to principal or interest, from the Pledged Tax Revenues <br />which have any lien upon the Pledged Tax Revenues prior or <br />superior to the lien of the Bonds herein authorized, Except as <br />permitted by Section 17 hereof, it will not issue any <br />obligations, payable as to principal or interest, from the <br />Pledged Tax Revenues, which have any lien upon the Pledged Tax <br />Revenues on a parity with the Bonds authorized herein, <br />Notwithstanding the foregoing, nothing in this Resolution shall <br />prevent the Agency (i) from issuing and selling pursuant to <br />law, refunding obligations payable from and having any lawful <br />lien upon the Pledged Tax Revenues, if such refunding <br />obligations are issued for the purpose of, and are sufficient <br />for the purpose of, refunding all of the outstanding Bonds or <br />Parity Bonds, or (ii) from issuing and selling obligations <br />which have, or purport to have, any lien upon the Pledged Tax <br />Revenues which is junior to the Bonds, or (iii) from issuing <br />and selling bonds or other obligations which are payable in <br />whole or in part from sources other than the Pledged Tax <br />Revenues. As used herein "obligations" shall include, without <br />limitation, bonds, notes, interim certificates, debentures or <br />other obligations. <br /> <br />05-23-86 <br />1665k/2281/06 <br /> <br />-24- <br />