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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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or agreement on the part of the defaulting party herein contained, the defaulting party, upon <br /> successful completion of such proceedings by the nondefaulting party, agrees that it will on <br /> demand therefor pay to the nondefaulting party the reasonable fees of and subject to any <br /> provision in the JPA Agreement regarding indemnification or payment of attorney fees, such <br /> attorney fees and such other expenses so incurred by the nondefaulting party. <br /> Section 5.06. Trustee and Bond Owners to Exercise Rights. <br /> Such rights and remedies as are given to the Authority under this Article V have been <br /> pledged by the Authority to the Trustee for the benefit of the Bond Owners, to which pledge <br /> User hereby consents. Such rights and remedies shall be exercised by the Authority, the Trustee <br /> and the Bond Owners as provided in the Trust Agreement. <br /> ARTICLE VI <br /> MISCELLANEOUS <br /> Section 6.01. Prepayment. <br /> Notwithstanding any other provision of this Operating Agreement, a User , with the <br /> consent of the Authority, may secure the payment of its Service Payments by a deposit with the <br /> Trustee, as escrow holder under an escrow deposit and trust agreement as referenced in and in <br /> conformance with the'Trust Agreement, of either (i) cash in an amount which is sufficient to pay <br /> all unpaid Service Payments imaccordance with the schedule set forth in the Trust Agreement, or <br /> (ii) non - callable Federal Securities or pre - refunded non - callable municipal obligations rated <br /> "AAA" and "Aaa" by S&P and Moody's, respectively, or any other investment approved in <br /> writing by the Trustee, together with cash if required, in such amount as will, in the opinion of <br /> an independent certified public accountant, together with interest to accrue thereon, be fully <br /> sufficient to pay all unpaid Service Payments pursuant to the'I'rust Agreement on their payment <br /> dates so that a pro -rata share of the Bonds shall be defeased as provided for in the Trust <br /> Agreement. <br /> In the event of a deposit pursuant to this Section 6.01, all obligations of the User under <br /> this Operating Agreement shall cease and terminate, excepting only the obligation of the User to <br /> make, or cause to be made, all Service Payments from the deposit made by User pursuant to this <br /> Section 6.01 and the obligation, to the extent the User is still using the service provided by the <br /> Project, to pay the Operating Payments. Said deposit shall be deemed to be and shall constitute a <br /> special fund for the payment of Service Payments in accordance with the provisions of this <br /> Operating Agreement <br /> The Authority shall consent to such prepayment or defeasance to the extent the same <br /> complies with the tax covenants of the Authority and the Counties. <br /> Section 6.02. Benefits of Operating Agreement Limited to Parties: <br /> Except as provided in Section 6.03, nothing contained herein, express or implied, is <br /> intended to give to any person other than the Authority or the Users any right, remedy or claim <br /> under or pursuant hereto, and any agreement or covenant required herein to be performed by or <br /> -20- <br /> Project Operating Agreement 082710 <br />
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