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10A Action 2010 0210
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10A Action 2010 0210
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9/27/2010 9:44:02 AM
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9/16/2010 5:30:32 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
9/20/2010
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_CC Agenda 2010 0920
(Reference)
Path:
\City Clerk\City Council\Agenda Packets\2010\Packet 2010 0920
Reso 2010-124
(Reference)
Path:
\City Clerk\City Council\Resolutions\2010
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expressly provided. Upon the occurrence and during the continuance of any Event of Default, <br /> the Authority shall have and is granted each and every one of the following remedies, subject in <br /> • all respects to the limitations set forth in Section 5.04. <br /> (a) Enforcement of Payments Without Termination. In the event the Authority does <br /> not elect to terminate this Operating Agreement with respect to a User in the manner hereinafter <br /> provided for in subparagraph (b) hereof, the User agrees to and shall remain liable for the <br /> payment of its User Payment and the performance of all conditions herein contained and shall <br /> reimburse the Authority for the full amount of its User Payments to the end of this Operating <br /> Agreement; provided that its User Payments shall be payable only at the same time and in the <br /> same manner as hereinabove provided for such User Payment, notwithstanding any suit brought <br /> by the Authority for the purpose of obtaining possession of the Project or any component thereof <br /> or the exercise of any other remedy by the Authority. Notwithstanding the provisions of the JPA <br /> Agreement, User agrees that this Operating Agreement constitutes full and sufficient notice of <br /> the right of the Authority to re- allocate service provided by the Project in the event of default by <br /> a User without effecting a surrender of this Operating Agreement, and further agrees that no acts <br /> of the Authority in effecting such re- allocation shall constitute a surrender or termination of this <br /> Operating Agreement irrespective of the term for which such re- allocation is made or the terms <br /> and conditions of such re- allocation, or otherwise, but that, on the contrary, in the event of such <br /> default by a User the right to terminate this Operating Agreement with respect to such User <br /> shall vest in the Authority to be effected in the sole and exclusive manner hereinafter provided <br /> for in subparagraph (b) hereof. Any User which is in default hereunder agrees to surrender and <br /> quit possession of the Project or any component thereof upon demand of the Authority. <br /> (b) Termination of the Operating Agreement. Notwithstanding any provision of the <br /> JPA Agreement to the contrary, the Authority, at its option, may, and shall at the written <br /> direction of either Bond Holder, terminate this Operating Agreement and reallocate all or any <br /> portion of the service capacity of the Project relating to a defaulting User; provided, that the <br /> Authority shall not terminate this Operating Agreement with respect to a User unless such <br /> termination will not materially adversely affect either Bond Holder. In the event of such <br /> termination of this Operating Agreement by the Authority at its option and in the manner <br /> hereinafter provided on account of default by a User (and notwithstanding any re- allocation of <br /> the service capacity of the Project by the Authority in any manner whatsoever), the defaulting <br /> User nevertheless agrees to pay to the Authority the difference between all costs, loss or <br /> damages howsoever arising or occurring payable at the same time and in the same manner as is <br /> herein provided in the case of the User Payment and any amounts realized from the reallocation <br /> of such service capacity. Neither notice to pay the User Payment or notice to deliver up <br /> possession of any component of the Project given pursuant to law shall of itself operate to <br /> • <br /> terminate this Operating Agreement, and no termination of this Operating Agreement on account <br /> of default by a User shall be or become effective by operation of law, or otherwise, unless and <br /> until the Authority shall have given written notice to such User of the election on the part of the <br /> Authority to terminate this Operating Agreement with regards to such User. User covenants and <br /> agrees that no surrender of the Project, or any component thereof, or any termination of this <br /> Operating Agreement shall be valid in any manner or for any purpose whatsoever unless stated <br /> 1 and accepted by the Authority by such written notice. User hereby irrevocably appoints the <br /> Authority as the agent and attomey -in -fact of User to terminate a defaulting User's service from <br /> the Project upon the occurrence and continuation of an Event of Default relating to such User, <br /> -18 <br /> Project Operating Agreement 082710 <br />
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