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<br />'. . <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />;~ . <br /> <br />substantially impaired, as shown by an Opinion of Counsel, <br />based upon the certificate or opinion of an Independent <br />Financial Consultant appointed by the Agency. <br /> <br />Covenant 9. Protection of Security and Rights of <br />Bondholders; No Arbitrage. The Agency covenants and agrees <br />to preserve and protect the security of the Bonds and the <br />rights of the Bondholders and to contest by court action or <br />otherwise (a) the assertion by any officer of any government <br />unit or any other person whatsoever against the Agency that (i) <br />the Law is unconstitutional or (ii) that the Tax Revenues <br />pledged hereunder cannot be paid to the Agency for the debt <br />service on the Bonds, or (b) any other action affecting the <br />validity of the Bonds or diluting the security therefor, or (c) <br />any assertion by the United States of America or any department <br />or agency thereof or any other person that the interest <br />received by the Bondholders is taxable under federal income tax <br />laws by reason of any action of the Agency. The Agency <br />covenants and agrees to take no action which, in the Opinion of <br />Counsel would result in (a) the Tax Revenues being withheld <br />unless the withholding is being contested in good faith, and <br />(b) the interest received by the Bondholders becoming taxable <br />under federal income tax laws. The Agency covenants and agrees <br />that it will make no use of the proceeds of the Bonds at any <br />time during the term thereof which will cause the Bonds to be <br />"arbitrage bonds" within the meaning of Section l03(c) of the <br />United States Internal Revenue Code of 1954, as amended, and <br />applicable regulations adopted thereunder by the Internal <br />Revenue Service, and the Agency hereby assumes the obligation <br />to comply with Section 103(c) and the regulations throughout <br />the term of the Bonds. <br /> <br />Section 19. Taxation of Leased Property. Whenever any <br />property in the Redevelopment Project Area has been redeveloped <br />and thereafter is leased by the Agency to any person or persons <br />(other than a public agency), or whenever the Agency leases <br />real property in the Redevelopment Project Area to any person <br />or persons (other than a public agency) for redevelopment, the <br />property shall be assessed and taxed in the same manner as <br />privately owned property, as required by Section 33673 of the <br />Law, and the lease or contract shall provide (a) that the <br />lessee shall pay taxes upon the assessed value of the entire <br />property and not merely upon the assessed value of his or its <br />leasehold interest, and (b) that if for any reason the taxes <br />levied on the property in any year during the term of the lease <br />or contract are less than the taxes which would have been <br />levied if the entire property had been assessed and taxed in <br />the same manner as privately owned property, the lessee shall <br />pay such difference to the Agency within thirty (30) days after <br />the taxes for the year become payable to the taxing agencies <br />and in no event later than the delinquency date of such taxes <br />established by law. All such payments shall be treated as Tax <br />Revenues, and when received by the Agency shall be used as <br />provided herein. <br /> <br />05-01-83 <br />4439P/2306/00 <br /> <br />2A <br /> <br />-23- <br />,t}-31 <br />