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<br />-43- <br />ARTICLE VIII <br /> <br />EVENTS OF DEFAULT AND REMEDIES OF OWNERS <br /> <br />Section 8.01. Events of Default and Acceleration of Maturities. The following events shall <br />constitute Events of Default hereunder: <br /> <br />(a) if default shall be made by the Successor Agency in the due and punctual <br />payment of the principal of or interest on any Bond when and as the same shall become <br />due and payable, whether at maturity as therein expressed, by declaration or otherwise; <br /> <br />(b) if default shall be made by the Successor Agency in the observance of any <br />of the covenants, agreements or conditions on its part in this Indenture or in the Bonds or <br />any Parity Debt Instrument contained, other than a default described in the preceding <br />clause (a), and such default shall have continued for a period of thirty (30) days following <br />receipt by the Successor Agency of written notice from the Trustee or any Owner of the <br />occurrence of such default, provided that if in the reasonable opinion of the Successor <br />Agency the failure stated in the notice can be corrected, but not within such 30 day period, <br />such failure will not constitute an event of default if corrective action is instituted by the <br />Successor Agency within such 30 day period and the Successor Agency thereafter <br />diligently and in good faith cures such failure in a reasonable period of time; or <br /> <br />(c) If the Successor Agency files a petition seeking reorganization or <br />arrangement under the federal bankruptcy laws or any other applicable law of the United <br />States of America, or if a court of competent jurisdiction will approve a petition seeking <br />reorganization under the federal bankruptcy laws or any other applicable law of the United <br />States of America, or, if under the provisions of any other law for the relief or aid of debtors, <br />any court of competent jurisdiction will approve a petition, seeking reorganization under <br />the federal bankruptcy laws or any other applicable law of the United States of America, <br />or, if under the provisions of any other law for the relief or aid of debtors, any court of <br />competent jurisdiction will assume custody or control of the Successor Agency or of the <br />whole or any substantial part of its property. <br /> <br />If an Event of Default has occurred under this Section and is continuing, the Trustee may, <br />or, if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds <br />then Outstanding the Trustee shall, (a) declare the principal of the Bonds, together with the <br />accrued interest thereon, to be due and payable immediately, and upon any such declaration the <br />same shall become immediately due and payable, anything in this Indenture or in the Bonds to <br />the contrary notwithstanding, and (b) the Trustee shall, subject to the provisions of Section 8.06, <br />exercise any other remedies available to the Trustee and the Bond Owners in law or at equity. <br /> <br />Immediately upon receiving notice or actual knowledge of the occurrence of an Event of <br />Default, the Trustee shall give notice of such Event of Default to the Successor Agency by <br />telephone promptly confirmed in writing. Such notice shall also state whether the principal of the <br />Bonds shall have been declared to be or have immediately become due and payable. With <br />respect to any Event of Default described in clauses (a) or (c) above the Trustee shall, and with <br />respect to any Event of Default described in clause (b) above the Trustee in its sole discretion <br />may, also give such notice to the Owners by mail, which shall include the statement that interest <br />on the Bonds shall cease to accrue from and after the date, if any, on which the Trustee shall <br />have declared the Bonds to become due and payable pursuant to the preceding paragraph (but <br />469