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<br />8 <br />and assurances required by the Lease. See “APPENDIX B – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.” <br />Substitution <br />Under the Lease, the City has the option at any time and from time to time, to substitute other real property (the “Substitute Property”) for the Leased Property or any portion thereof <br />(the “Former Property”), upon satisfaction of all of the requirements set forth in the Lease, which includes (among others) the following: <br />• No Event of Default under the Lease has occurred and is continuing. <br />• The City has obtained a CLTA or ALTA policy of title insurance insuring the City’s leasehold estate under the Lease in the Substitute Property, subject only to Permitted Encumbrances, in an amount at least equal to the estimated value <br />thereof. <br />• The City has certified in writing to the Authority and the Trustee that the <br />Substitute Property serves the municipal purposes of the City and constitutes <br />property which the City is permitted to lease under the laws of the State, and has been determined to be essential to the proper, efficient and economic operation <br />of the City and to serve an essential governmental function of the City. <br />• The Substitute Property does not cause the City to violate any of its covenants, representations and warranties made in the Lease. <br />• The City has filed with the Authority and the Trustee a written certificate of the <br />City or other written evidencing stating that the useful life of the Substitute Property at least extends to November 1, [2048], that the estimated value of the <br />Leased Property, after substitution of the Substitute Property and release of the Former Property, is at least equal to the aggregate Outstanding principal amount of the Bonds, and the fair rental value of the Leased Property, after substitution <br />of the Substitute Property and release of the Former Property, is at least equal to the Lease Payments thereafter coming due and payable under the Lease. <br />• The City has mailed written notice of the substitution to each rating agency that <br />then maintains a rating on the Bonds. <br />• The City has furnished to the Authority and the Trustee a written opinion of Bond <br />Counsel stating that such substitution does not cause the interest on the Bonds <br />to become included in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State. <br />Upon the satisfaction of all such conditions precedent, the Term of the Lease will end as <br />to the Former Property and commence as to the Substitute Property. The Authority and the City will also make any amendments needed to be made to the Lease, and will enter into any <br />necessary site or ground leases in connection with such substitution. Such amendments may be made without the consent of the Owners of the Bonds. The City is not entitled to any reduction, diminution, extension or other modification of the Lease Payments as a result of a <br />substitution. See “APPENDIX B – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.”