1987-139 - Laserfiche WebLink

Home Browse Search

40 ARTICLE VII PREPAYMENTS Section 7.01. Redemption of Bonds by Voluntary Payment. Upon written notice to the Registrar and Paying Agent by the Borrower and NHC, consented to in writing by the Credit Facility Provider if a Credit Facility is in effect and the Credit Facility Provider has not wrongfully failed to honor a demand for funds under the Credit Facility, which notice shall set forth the aggregate principal amount of Bonds to be redeemed, the Registrar and Paying Agent shall give notice of the Issuer's election to redeem Bonds in the aggregate principal amount set forth in such notice in accordance with the Indenture. So long as the Credit Facility is in effect, at least 124 days before the redemption date of any Bonds during any Fixed Rate Period, the Borrower shall pay to the Trustee the amount of any premium that will be payable upon such redemption of Bonds. Section 7.02. Mandatory Redemption of Bonds Upon Determination of Taxability. In the event that the Borrower receives notice from the Trustee pursuant to Section 3.02(c) of the Indenture that a proceeding which could lead to a Determination of Taxability (as defined in Section 6(d) of the Bonds) has been instituted against a Bondholder, the Borrower shall promptly notify the Trustee whether or not it intends to contest such proceeding. In the event that the Borrower chooses to contest such proceeding, it will use its best efforts to obtain a prompt final determination or decision in such proceeding or litigation and will keep the Trustee informed of the progress of any such proceeding or litigation. The Borrower shall be obligated to prepay all amounts payable hereunder and under the Note upon the occurrence of a Determination of Taxability on a Business Day that is not more than 60 days after receipt by the Borrower of written notice of the occurrence of such Determination of Taxability; provided, however, that if there shall be delivered to the Trustee an opinion of Bond Counsel to the effect that, if fewer than all of the Bonds are redeemed, the interest payable on the Bonds remaining outstanding will not be includible in the gross income of the holders thereof for federal income tax purposes (other than during any period in which any such holder is a "substantial user" of the Facilities or a "related person" within the meaning of Section 147(a) of the Code), the Borrower shall be obligated to prepay the amounts payable hereunder and under the Note in part in an amount equal to the aggregate,principal amount of the Bonds required to be redeemed. Section 7.03. Extraordinary Redemption of Bonds. The Borrower shall have the right to require the redemption of Bonds upon the occurrence of the conditions or events described in Section 6(e) of the Bonds. Upon the occurrence of any of such events or conditions and at the written request of Authorized Officers of the Borrower and NifC, with the written consent of the Credit Facility Provider if a Credit Facility is in effect and the Credit Facility Provider has not wrongfully failed to honor a demand for funds under the Credit Facility, and receipt by the Trustee of a resolution of the Board of Directors of the Borrower that such event or condition has occurred, the Registrar and Paying Agent shall give notice of the Issuer's election to redeem the Bonds subject to the provisions of Section 3.03 of the Indenture regarding the redemption of a portion of a Bond. - 22 -