1984-040A - Laserfiche WebLink

Home Browse Search

•i utilities and services that will be necessary for the construction, operation, repair and maintenance of the Project and on account of any increase in population or other circumstan- ces resulting by reason of the location of the Project within the jurisdictional territorial limits of the Issuer, will be provided by the Borrower when needed. . E. Adequate provision is made under the provisions of the Loan Agreement for the operation, repair and maintenance of the Project at the expense of the Borrower, and for the payment of tha principal oi, pretiium, if any, and interest on the Bonds. F. The principal of, premium, if any, and interest on the Bonds and all payments required under the Loan Agreement and the Indenture shall be payable from the proceeds derived by the Issuer under the Loan Agreement, including the loan payments required to be made by the Borrower in connection with its use and operation of the Project, and the Issuer shall never be required to (1) levy ad valorem taxes on any property within its jurisdictional territorial limits to pay the principal of, premium, if any, and interest on the Bonds or to make any other payments provided under the Loan Agreement and the Indenture, or (2) pay the same from any funds of the Issuer other than those derived by the Issuer under the Loan Agreement; and such Bonds shall not constitute a lien upon any other property owned by or situated within the jurisdictional territorial limits of the Issuer. G. The payments to be made by the Borrower to the Trustee under the Loan Agreement will be sufficient to pay all principal of, premium, if any, and interest on the Bonds, as the same shall become due, and to make all other payments required by the Loan Agreement and the Indenture. H. The costs to be paid from the proceeds of the Bonds will be costs of the Project, within the meaning of the Act. I. The interest on the Bonds will be exempt from federal income taxation under existing laws of the United States. J. Industrial development revenue bonds are tradi- tionally sold on a negotiated basis and, consequently, a com- petitive sale of the Bonds would in all probability not produce better terms than a negotiated sale, particularly in view of the timing of such an offering and the current instability of the bond market. K. The Bonds are payable from the proceeds of the Loan Agreement and, therefore, the Issuer does not have a direct -3-