1981-040 CRA - Laserfiche WebLink

Home Browse Search

(B) The Agency shall not sell, assign, transfer, pledge or otherwise disp.ose of or encumber its interest in the Mortgage Loan Participation or the Loan to Lender or any of the rights of the Agency with respect to the Mortgage Loan Participati.on or Loan to Lender .or arising out of the Mortgage Loan Participation Purchase and Servicing Agreement, the Agreement to Advance Regarding Subordinati.on or the Loan Agreement, except that the Agency may accept substitution .of an obligor in respect of the Loan to Lender in order to prevent a default there.on, provided that the terms .of the Loan t.o Lender are unchanged and the L.oan to Lender as substituted is in compliance with the Loan - Agreement including with respect to the qualifications of the Lender. (C) The Agençy shall not consent, agree t.o .or permit. any amendment or modi ficat ion. of the Mortgage Loan Part ic ipat ion Purchase and Servicing Agreement, the Agreement to Advance Regarding Subordination or the L.oan Agreement which will in any manner impair .or materially adversely affect the rights or security of the Bondholders hereunder; provided that this pr.ovision shall not be construed to prevent the Agency from settling a default on the Mortgage Loan Participation Purchase and Servicing Agreement, the Agreement t.o Advance Regarding Subordination or the Loan Agreement on such terms as the Agency shall determine to be in the best interests of the Agency and the Bondholders. (D) The Agency has, and will have so long as any Bonds are outstanding, good right and lawful power to hold and collect Pledged Revenues. 912. Tax C.ovenant. The Agency shall at all times do and perf.orm all acts and things necessary or desirable in order to assure that interest paid on the Bonds shall, for the purposes of Federal income taxation, be excludable from the gross income of the recipients thereof and exempt from such taxation, except in the event that such recipient is a "substantial user" or "related person" within the meaning of Section 103(b)(9) of the Internal Revenue Code of 1954, as amended. 913. Non-Arbitraqe Covenant. The Agency hereby covenants that it wi 11 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) of the Internal Revenue Code of 1954, as amended, and any applicable regulations promulgated thereunder. 914. Non-Arbitrage Certification. The Treasurer .or Executive Director of the Agency is authorized to certify that on the bas is of the facts, estimates and circumstances in existence on the date of issue of the Bonds it is not expected that the proceeds of the Bonds wi 11 be used in a manner that would cause the B.onds to be arbitrage bonds. In addition to the matters certified, the Treasurer or Executive Direct.or of the Agency is also authorized and instructed to set forth in brief sunmary terms the facts and estimates upon which the Agency's expectation that the B.onds will not be used in a manner that w.ould cause the Bonds to be arbitrage bonds is based. The 49 . . . . .