05.02 - HRA West Grove Townhome Refunding

Home Browse Search

ARTICLE III Proiect; Proiect Financing Section 3.1. Proiect Construction. The City HRA is the fee owner of the Project Site, which is subject to only those encumbrances listed on Exhibit A hereto. Subject to the terms and conditions of this Agreement, including all exhibits hereto, the City HRA will do any work necessary to make the Project Site buildable and will construct and equip the Project (pursuant to the description of the Project and the schedules attached hereto as Exhibit B). The City HRA will use commercially reasonable efforts to begin construction of the Project in a timely fashion and will complete construction of the Project by January 1, 2005. The City HR.A will receive disbursements for construction and other permitted costs from the Construction Fund established under the Indenture, pursuant to the Disbursing Agreement. The County HRA assigns any rights it may have to disbursements for Project construction to the City HR.A. Section 3.2. Citv HRA Deposit of Additional Funds. At the closing on the Bonds, the City HRA will deposit with the Trustee $9,750, or such lesser amount as is collected by the City HRA from the Special Benefits T�, for the second half of 2003, for credit to the Construction Fund established under the Indenture. Promptly upon receipt of each semi-annual installment of its Special Benefits Tax in 2004, the City HRA will deposit with the Trustee $9,750 (a total of $19,500 for 2004) or such lesser amount as is collected by the City HRA for credit to the Construction Fund established under the Indenture. . Section 3.3. Citv HR-A Pled�e of Proiect Revenues. The City HRA pledges to the County HRA, for the benefit of the holders of the Bonds, all Project Revenues as defined in the Indenture. All Project Revenues received by the City HRA, or received by any property manager for the Project for the account of the City HRA, shall be deposited by the City HRA or the property manager within three (3) Business Days following receipt in a receipts account which shall be established solely for that purpose by the City HRA and from which funds shall be transferred to the Trustee on the 15`h day of each month according to Section 5.4 of the Indenture. The City HRA covenants to pay or cause to be paid or assigned to the Trustee all other Revenues and all Extraordinary Revenues attributable to the Project. Section 3.4. Citv HRA Additional �Covenants. The City HRA covenants with the County HR.A that, while any Bonds are Outstanding: (a) The City HRA neither has nor will encumber, assign, or pledge the Project Revenues or Extraordinary Revenues or sell, transfer, assign, pledge or otherwise dispose of or encumber any interest in the Project, except as expressly permitted in the Tndenture and then only on a subordinate basis to the pledge of the County HRA under the Indenture; '"1 '"\ (b) The City HRA will not terminate, surrender, or otherwise delegate its existence and authority as an independent governmental agency, if such action would have a material impact on the County HRA's obligations under the Indenture, except if required by applicable law or judicial determination. "� EMT-238666v5 CR195-4