05.02 - HRA West Grove Townhome Refunding

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required by the County HRA or the Trustee. ( fl The City HRA will perform all obligation specified in Sections 4.3, 4.4, 4.5, and 5.3 of the Indenture. (g) The City HRA assumes and makes, for the benefit of the County HRA, all warranties, representations, agreements, and covenants set forth in Section 12.9 of the Indenture. (h) The City HRA will provide title insurance for the Project Site and pledges the proceeds thereof, if any, to the County. (i) to collect monthly rents when due, but in any event not later than the 15th day of each month, and to ensure payment of these rents into the receipts account, for payment to the Trustee, pursuant to Section 3.3 of this Agreement. ''1 Section 3.5. Citv HRA Special Benefits Tax. In Resolution No. , approved Apri13, 2012, the City Council of the City consented to and approved the annual levy by the City HRA of its Special Benefits Tax to the extent it is needed to pay both of debt service on the Bonds and Operating Costs of the Project because of deficiencies in Project Revenues; provided that the levy in any year may not exceed to the maximum permitted under Minnesota Statutes Section 469.033, subd. 6(the "Levy Act") in effect at the time of each levy. The parties acknowle that as of the date of this Agreement, the maximum City HRA Special Benefits Tax under the Levy Act is .0185 percent of t�able market value in the City. '_'� (a) The City HRA pledges to the County HRA, for the benefit of holders of the Bonds, the proceeds of the Special Beneiits Tax in the amount that, together with Project Revenues, is sufficient to pay 105 percent of principal and interest when due on the Bonds. In the event the annual cash flow projection prepared by the City HRA for any Fiscal Year pursuant to Section 4.14 the Indenture indicates that Project Revenues available in such Fiscal Year will not be sufficient to pay 105 percent of principal and interest on the Bonds when due in such Fiscal Year, the City HRA will promptly take steps to levy the Special Benefits Levy in accordance with the Levy Act. The City HRA shall timely submit is annual budget to the City each year while the Bonds are Outstanding in accordance with the Levy Act, and shall include in each budget an amount at least equal to the lesser of (i) the deficiency calculated as described in this Section, or (ii) the maximum levy permitted under the Levy Act. The City HRA will pay proceeds of the Special Benefits Ta�c levied under this paragraph to the Trustee for deposit in the Revenue Fund in accordance with the Indenture. The Special Benefits T� shall be deemed to be unrestricted and shall not be pledged to the payment of another obligation if such pledge would be on parity with or have priority over the pledge hereunder. (b) the City HRA also pledges to the County HRA and the Couty, the proceeds of the Special Benefits Tax in the amount that, together with projected Project Revenues and the balance of funds in the Operating Fund, is sufficient to cover Operating Costs specified in the Budget for the subject Fiscal Year, and to maintain in the Operating Fund an amount equal to the Operating Fund Reserve Requirement (all in accordance with the Budge and cash flow projection provisions described in Section 4.14 and 4.15 of the Indenture). The City HRA will "1 pay proceeds of the Special Benefits Tax levied undert his paragraph to the Trustee for deposit in 400724v1 CR195-11