05-13-2020 Council Packet - Laserfiche WebLink

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19 Limited Value of the Project upon Foreclosure The Project is not comprised of general purpose buildings and generally would not be suitable for industrial or commercial use. As a result of the foregoing, in the event of a default by the Borrower, the Trustee’s remedies and the number of entities which could operate such facilities may be limited, and the revenues therefrom might thus be adversely affected. Accordingly, in the event of foreclosure, the proceeds of a sale of the Project under such circumstances may be less than that obtainable if the sale were not forced and, in any event, may not be sufficient to pay the Series 2020 Bonds in full. In such event the Issuer will not have any general or moral obligation to pay any deficiency. Additional Debt Subject to limitations contained therein, the Indenture permits the issuance of Additional Bonds with the same security as the Series 2020 Bonds and the Loan Agreement also permits the incurrence of other Indebtedness and guaranties of Indebtedness by the Borrower, subject to limitations discussed above and in APPENDIX D. The incurrence of additional Indebtedness and guaranties would increase debt service requirements and could materially and adversely affect debt service coverage on the Series 2020 Bonds. See the discussion of additional Indebtedness under “SECURITY FOR THE SERIES 2020 BONDS – Special Covenants” and See “APPENDIX D - DEFINITIONS AND SUMMARY OF CERTAIN PRINCIPAL DOCUMENTS” in this Official Statement. Additional Guaranteed Debt; Dilution The Indenture and the Loan Agreement limit, but do not prohibit the incurrence of other Indebtedness and guaranties of Indebtedness by the Borrower. The incurrence of additional Indebtedness and guaranties would increase debt service requirements and could materially and adversely affect debt service coverage on the Series 2020 Bonds. Certain amendments to the Indenture and the Loan Agreement may be made with the consent of the Holders of a majority in principal amount of the Outstanding Bonds. See “APPENDIX D - DEFINITIONS AND SUMMARY OF CERTAIN PRINCIPAL DOCUMENTS” in this Official Statement. Taxability of the Series 2020 Bonds A Determination of Taxability with respect to the Series 2020 Bonds could occur if the Borrower does not comply with the provisions of the Loan Agreement which require the Borrower to satisfy the continuing compliance requirements of the Code, including the maintenance of the Borrower’s status as a Minnesota nonprofit corporation and an organization treated as a Tax-Exempt Organization. A Determination of Taxability will not occur as a result of a change in federal tax law. Cybersecurity Risk The Borrower’s services and systems may be critical to operations or involve the storage, processing and transmission of sensitive data, including valuable intellectual property, other proprietary or confidential data, regulated data, and personal information of employees, residents and others. Successful breaches, employee malfeasance, or human or technological error could result in, for example, unauthorized access to, disclosure, modification, misuse, loss, or destruction of the Borrower’s or other third party data or systems; theft of sensitive, regulated, or confidential data including personal information and intellectual property; the loss of access to critical data or systems; service or system disruptions or denials of service.