09-23-24 City Council Agenda Packet

Home Search

("Bond Counsel") to the effect that such prepayment will not cause the interest on the Note to be included in the gross income of the recipient thereof for federal income tax purposes. (c) The Authority will apply any amount paid by the Recipient to prepay all or a portion of the Note as follows: first, to the payment of fees, expenses and other costs of the Authority as provided in Subsection (a); second, to the payment of interest and servicing fees on the principal amount of the Note to be prepaid; and, third, to the principal of the Note. The principal amount of a partial prepayment will, in the sole discretion of the Authority, (i) be applied to one or more future principal payments of the Loan in a manner determined by the Authority, or (ii) be applied to redee unpaid annual principal installment of the Loan in the proportion that such installment bears tal of all unpaid principal installments (i.e., the remaining principal payment schedule -amortized to provide proportionately reduced principal payments in each year). ARTICLE 2 — RECIPIENT RESPONSIBILITIES AND PROJECT COMPLIANCE Section 2.1 Recipient Responsibilities with Respect to the Project. (a) The Recipient must meet all requirements in the project application submitted r the Authority as to compliance with federal and state laws, rules and regulations and include in any co tract or s ontract relate the Project provisions requiring contractor and subcontractor com a wi licable state an deral laws. The requirements in that application are hereby incorpora ence. (c) The Recipient will not enter into a sale, I Project, or change the us2iddiNkoject, with lease, transfer, agree 4, or (ii) violate the 1i !ct with reasonable diligence, to pay eligible project costs. transfer or other use agreement of any part of the ie prior written aooval of the Authority if that sale, ) violate the covenants set forth in Article 3 or Article Mization grants were furnished by the United States NWherwise violate any terms or conditions of this rance coverage for the Project in those amounts `p good faith to be reasonable or in those amounts and with those e to time. The Recipient may substitute adequate, actuarially ntion gram(s) for property insurance coverage, so long as such plicable laws and state and federal regulations. e the Project in accordance with all applicable federal, state and local ordinances, reporting requirements, approvals, and state agency design and construction of the Project, and operate the Project's system in le federal and state laws and regulations and permit requirements. (f) The Recipient agrees to exert all reasonable efforts to investigate claims that the Recipient may have against third parties with respect to the construction of the Project and, in appropriate circumstances, take whatever action, including legal action, the Recipient reasonably determines to be appropriate. (g) Clean Water Legacy logo: This subsection is intentionally left blank. Lino Lakes DWRf 01 Page 4 of 12 A-5