05-13-2020 Council Packet - Laserfiche WebLink

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17 less than fair market value, provided, however, that the Borrower may, without violating the covenant set forth in the Loan Agreement, transfer to a commonly controlled affiliate during any fiscal year of the Borrower operating revenues or other moneys of the Borrower, so long as: (a) at the time no Event of Default shall have occurred or be continuing under the Loan Agreement; and (b) at the time the amount on hand in the Reserve Fund is at least equal to the Reserve Requirement, (c) for the prior fiscal year, the Borrower shall have had Income Available for Debt Service at least equal to [120%] of Total Principal and Interest Requirements, and (d) as of the final day of the prior fiscal year of the Borrower, the Borrower had not less than [90] Days Cash on Hand, as such term is used in and otherwise in accordance with the requirements of the Loan Agreement (except other than in connection with a transfer to an affiliate as provided for in the Loan Agreement, the Borrower is required to maintain [60] Days Cash on Hand, as further provided therein). In the event that the Borrower makes a transfer to a commonly controlled affiliate and such transfer is thereafter deemed to violate the provisions of the Loan Agreement, the Borrower shall forthwith seek to have all necessary funds or property returned from such affiliate in order to maintain compliance with this covenant. Repair and Replacement Reserve Pursuant to the Indenture, the Trustee is directed to establish and maintain a Repair and Replacement Reserve Fund (the “R&R Reserve”). The Borrower will make deposits to the R&R Reserve and may make withdrawals therefrom as provided below: (a)On _____, 2023, and on the 25th day of each month thereafter, the Borrower will make deposits to the credit of the R&R Reserve in an amount equal to $[3,879.17] (1/12th of $350/per unit/bed per year), provided, however, that in no event will the amount on deposit in the R&R Reserve at any time be required to be in excess of the R&R Reserve Requirement of $200,000. (b)Amounts on deposit from time to time in the R&R Reserve may be withdrawn by the Borrower for paying costs of repairs, maintenance, and capital improvements necessary or desirable to be made, in the reasonable discretion of the Borrower, upon delivery to the Trustee by an Authorized Borrower Representative of a Certificate to such effect. Defeasance Upon certain terms and conditions specified in the Indenture, the Series 2020 Bonds or portions thereof will be deemed to be paid and the security provided in the Indenture and the Mortgage may be discharged prior to maturity or redemption of the Series 2020 Bonds upon the provision for the payment of such Series 2020 Bonds. In that case, the Series 2020 Bonds will be secured solely by the cash and securities deposited with the Trustee for such purpose. See “APPENDIX D - DEFINITIONS AND SUMMARY OF CERTAIN PRINCIPAL DOCUMENTS - THE INDENTURE” in this Official Statement. (The remainder of this page is intentionally left blank.)