1987-139 - Laserfiche WebLink

Home Browse Search

• In addition, as to any Issue, so long as a Credit Facility is in effect as to such Issue, with the written consent of such Credit Facility Provider, or on any Fixed Rate Date applicable to the Bonds of such Issue on which a Fixed Rate Period that extends to the maturity date of such Bonds begins, the Company and NHC may elect to increase or decrease the Sinking Fund Installment due on any date for such Issue, but only if such increase or decrease does not lengthen the average weighted maturity of the Bonds of such Issue, and only if there shall first be delivered to the Registrar and Paying Agent for such Bonds an opinion of Bond Counsel to the effect that such increase or decrease will not adversely affect the excludability from gross income for federal income tax purposes, of interest paid on Bonds of such Issue. Notwithstanding the foregoing, the amount of any Sinking Fund Installment for Bonds of an Issue due on any date may not be reduced to an amount less than the outstanding amount of such Bonds that have been previously selected for redemption on such date in connection with the establishment of a Fixed Rate Period for such Bonds as described above under "Interest - Fixed Rate Periods." Mandatory Redemption Upon Determination of Taxability The Bonds of any Issue are subject to mandatory redemption prior to maturity, as a whole or, as hereinafter described, in part, at a redemption price equal to the principal amount of the Bonds redeemed, on a Business Day not later than 60 days after the Company receives notice from the Trustee of a Determination of Taxability. The Trustee shall direct the Registrar and Paying Agent to give notice of such redemption 35 days before the redemption date. "Determination of Taxability" means, with respect to any Issue, a final determination by the Internal Revenue Service or a court of competent jurisdiction that the interest payable on any Bond of such Issue is for any reason includable for federal income tax purposes in the gross income of any holder or former holder thereof, other than during any period in which such holder or former holder is or was a "substantial user" of the Project refinanced by such Issue or a "related person" within the meaning of Section 147(a) of the Internal Revenue Code of 1986, as amended (or any applicable predecessor provisions); provided, however, that no "Determination of Taxability" shall be deemed to have occurred unless such holder or former holder gives the Company and the Trustee prompt written notice of such determination and the Company has been afforded the opportunity to contest the same either directly or in the name of the holder or former holder of such Bond, and until a conclusion of any appellate review, if sought. Upon the occurrence of a Determination of Taxability, the Bonds shall be redeemed in whole unless, in the opinion of Bond Counsel, the interest payable on the Bonds remaining outstanding after such redemption would not be includable in the gross income of any holder thereof for federal income tax purposes (other than during any period in which such holder is a "substantial user" of the Project or a "related person"). If the Indenture relating to such Issue is discharged as described herein under "Summary of Certain Provisions of the Indentures -Defeasance" prior to the occurrence of a Determination of -13-