09-14-1998 EDA - Laserfiche WebLink

Home Browse Search

State income taxation, and the Parties accordingly anticipate that the EDA Note will be a "taxable" obligation. (f) The EDA Note shall be a special and limited revenue obligation of the Authority and not a general obligation of the Authority, and only Available Tax Increments shall be used to pay the principal of and interest on the EDA Note. The EDA Note shall not be any obligation whatsoever of the City. (g) The Authority's obligation to make payments on the EDA Note shall be conditioned upon the requirement that there shall not at the time have occurred and be continuing an Event of Default; provided, however, that if such Event of Default shall subsequently have been cured to the reasonable satisfaction of the Authority, such unpaid obligations shall thereupon be reinstated and thereby become due and payable. (h) The EDA Note shall be governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit B. In the event of any conflict between the terms of the EDA Note and the terms of this Section 3 .2, the terms of the EDA Note shall govern. (i) Following any termination of this Agreement by the EDA pursuant to Section 5 .2 or 3 .4 (c) hereof, no further or unpaid amounts of the EDA Note shall then or thereafter be due and payable by the Authority under this Section or the EDA Note but shall thereupon be extinguished. (i) The pledge of the Available Tax Increments made in this Section 3 .2 and in the EDA Note to payment of the EDA Note shall in all respects be junior and subordinate to the pledge of and need for the Tax Increments to provide timely payment of the debt service on the Bonds; provided, however, that the Authority does covenant to the Developer to apply all other Tax Increments (that is, all Tax Increments other than the Available Tax Increments) to such purposes and to resort to Available Tax Increments only in the event that said other increments are insufficient for such debt service purposes. Section 3 .3 . Construction Plans. (a) The Authority shall have no obligation to the Developer to take any action pursuant to any provision of this Agreement until such time as the Developer has submitted Construction Plans to the Authority, and the Authority has approved such Construction Plans. The Authority shall approve the Construction Plans if it determines that they conform to the applicable provisions of this Agreement; provided, however, that any such approval of the Construction Plans pursuant to this Section 3 .3 shall constitute approval for the purposes of this Agreement only and shall not be deemed to 334455.RED v5 to 1'4 9/10/98 3-3 bi ri 71)P) 1QCPY1k1/1C :Rf1 'iC/1C :Qn QF 11 's;fl lival nrvnvnur (Inn= nv