05-13-2020 Council Packet - Laserfiche WebLink

Home Browse Search

15 and Interest Requirements. The Trustee has no duty or obligation to monitor the Borrower’s compliance with any recommendations it receives pursuant to this provision. If, with respect to any fiscal year of the Borrower, Income Available for Debt Service for such fiscal year has been less than 100% of its Total Principal and Interest Requirements, based on audited financial statements for the Borrower delivered in accordance with the Loan Agreement there shall be deemed to have occurred an Event of Default under the Loan Agreement, notwithstanding anything else set forth in the Loan Agreement. This provision shall not be construed to prohibit the Borrower from serving indigent patients to the extent required for it to continue its qualification as a tax-exempt organization or to maintain eligibility to participate in the Medicare and Medicaid programs, to comply with any other requirements of law, or from servicing any other class of patients without charge or at reduced rates so long as such service does not prevent the Borrower from satisfying the other requirements of this provision. See “APPENDIX D – DEFINITIONS AND SUMMARY OF CERTAIN PRINCIPAL DOCUMENTS - THE LOAN AGREEMENT – [Rate and Liquidity Covenants]” in this Official Statement. Days Cash on Hand. In the Loan Agreement, as of the final day of each fiscal year, commencing with the fiscal year ending September 30, 2023, the Borrower shall maintain not less than sixty (60) Days Cash on Hand. Not more than 120 days following each such fiscal year, the Borrower shall furnish to the Trustee a Certificate, signed by the Authorized Borrower Representative, setting forth the Borrower’s Days Cash on Hand as of the final day of the fiscal year then ended, and stating whether the requirements of this covenant have been met. If, as of the final day of any fiscal year of the Borrower, commencing with the fiscal year ending on September 30, 2023, the Borrower has less than sixty (60) Days Cash on Hand, then the Borrower shall at its expense retain an Independent consultant (which consultant may consist of a recognized senior housing, assisted-living and nursing home consulting firm or a firm of certified public accountants) to make recommendations with respect to the Borrower’s rates, fees and charges and other matters relating to or affecting said Days Cash on Hand, provided that if the Borrower shall have employed an Independent consultant pursuant to this Section on a continuing basis, the Borrower shall not be required to employ a new Independent consultant or obtain new recommendations. A copy of the Independent consultant’s report and recommendations and any supplements thereto shall be filed with the Borrower and the Trustee. The recommendations of the Independent consultant and any supplements thereto shall be presented by the Independent consultant in writing to the Board of Directors of the Borrower. The Borrower agrees that it will, to the extent permitted by law, follow the recommendations of the Independent consultant unless the Board of Directors of the Borrower in good faith resolves in a writing delivered to the Trustee on or before sixty (60) days of receipt of the recommendations of the Independent consultant that such recommendations are not in the best interests of the Borrower and that a proposed alternate set of recommendations of management are likely to achieve the sixty (60) Days Cash on Hand requirement. So long as an Independent Consultant shall be employed and the Borrower accepts and follows the recommendations of the Independent Consultant or such alternate recommendations of the Board of Directors of the Borrower, the Borrower shall be deemed to be in compliance with the Days Cash on Hand covenant with respect to the fiscal year in which the recommendations shall have been presented and all prior fiscal years, notwithstanding that the Borrower may not have had sixty (60) Days Cash on Hand; and if the Borrower shall also employ the consultant on a continuing basis, to monitor the effect of the recommendations on the Borrower’s cash on hand in future fiscal years and to supplement the recommendations (if needed, in the opinion of the Independent consultant), then (so long as the Borrower shall continue to accept and follow the recommendations of the Independent Consultant and