96-043 Resolution - Laserfiche WebLink

Home Browse Search

,,. . ,. ? ...,?., , . - - .-...m..?.?:?-?- • _ . . "? ?5...,. In case any a(.tion or proceeding be brought against the State by reason of any cltim described in this "ectior, the State agrees to cause written notice of such action or praceeding to be given to the Bo •rower,, and the Borrower upon aotice from the State covenants to resist ar defend such action ar proce:dings at the Bvrrower's expense including ali legal and other expenses (including reasc °iable F ttorneys' fees). ARTICLE Vl li - M1'JNTENANCE OF TAX-EXEMPT STATUS OF B()NDS/PRIVATE BUSINESS USE RESTRiCTI0N5 Section "J.1. T he BQrcower acknowledges that the OWDA may issue tax-exempt bonds to prcvide the fur Js to t leet the State's obligations with regard to funding the WPCLF and that the maintenance oE' the ta c-exempt status of any such bonds will depend, in part, on the Borrower's comptiance wit'i the pr•ovisions of this Agreement. Accordingly, the Borrower agrees as follows: (a) That it sha 1 talce no action that would cause bonds issued by the OWDA, the proceeds ofwhich couid iiund tr:: laan to the borrowcr (the "OWDA Bonds") to fail to qualify as tax-exempt bonds, nor omi: to take any actian necessary to maintain such status; (b) Tt.:it it s'iall t?:ke any action that the 4WDA rcasonably may request it to take to maintain the sti- :us of the O`NbA Bonds as tax•exempt bonds; (c) Th: x, to issure that the OWDA Bonds will not be or become "private activity bonds" within the mea-ing of Section 141 ofthe Internal Revenue Code of 1986, as amended: (i) Tt e Borrower shail not permit, at any time ten percent (10%) or more (in the ag,gregate) of tt:.tt port'on of the Project Facilities to be financed with t'unds borrowed from the State hereunder (the "State Funds") to be used by any person or persons for any private business use (as hereinaRer defl:iea) w hile at the same time the payment of principal of, or the interest on, thc Stata Funds is direcAy or i-idirectly (i) secured by any interest in (A) property used ar to be used for a ptivate busincis use Dr (B) payments made with respect to such property or (ii) derived from (A) payments with : espect to such property (whether or not made to the OWDA) or (B) borrowed money used or to be t!.;ed fo:• private business use. (ii) N:) portion of the 5tate Funds will be used to make or finance loans to persons other than oth:.r govt mmerital units. For pwposes of this Agreem,:nt, "private business use" means use (directly or indirectly) in a tradF or bu: iness carried an by any persan other than a governmental unit (as hereinaRe: define.'.). Usc af any Project Facility or Project Site as a member of the general public wil1 not be consii ered a private business use. Any activiry carried on by a person other than a natural persor shall be treated as a trade or business. Use by an organization which qualifics under "ectior. 501(c)(3) of the Internal Revenue Code of 1986, as it may be amended from time ta time, shall be considered a private business use. 17