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Attachment B
<br />ARTICLE VI
<br />Special Covenants
<br />Section 6.1. No Warrantv of Condition or Suitabilitv, Indemnification. (a) The City does
<br />not make any warranty, either express or implied, as to the design or capacity of the Housing
<br />Improvements, as to the suitability for operation of the Housing Improvements or that they will be
<br />suitable for the Association's purposes or needs. The Association releases the City from, agrees that
<br />the City shall not be liable for, and agrees to hold the City, its Council and its respective officers and
<br />employees, harmless against, any claim, cause of action, suit or liability for any loss or damage to
<br />property or any injury to or death of any person that may be occasioned by any cause whatsoever
<br />pertaining to the Housing Improvements or the use thereof.
<br />(b) The Association further agrees to indemnify and hold harmless the City its officers and
<br />employees, against any and all losses, claims, damages or liability to which the City its officers and
<br />employees, may become subject under any law arising out of any act, omission, representation or
<br />misrepresentation of the Association in connection with the issuance and sale of the Bonds and the
<br />carrying out of the transactions contemplated by this Agreement, and to reimburse the City, its
<br />officers and employees, for any out-of-pocket legal and other expenses (including reasonable
<br />counsel fees) incurred by the City, its officers and employees, in connection with investigating any
<br />such losses, claims, damages or liabilities or in connection with defending any actions relating
<br />thereto. The City agrees, at the request and expense of the Association, to cooperate in the making
<br />of any investigation in defense of any such claim and promptly to assert any or all of the rights and
<br />privileges and defenses which may be available to the City. The provisions of this Section shall
<br />survive the payment and redemption of the Bonds.
<br />(c) All covenants, stipulations, promises, agreements and obligations of the City contained
<br />herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of
<br />the City and not of any governing body member, officer, agent, servant or employee of the City in
<br />the individual capacity thereof.
<br />(d) The covenants of the City and the Association, respectively under this Agreement are
<br />intended solely for the benefit of the parties hereto, and no contractor, Housing Unit owner or
<br />occupant, or any other party shall have any rights or interests as a third party beneficiary under
<br />this Agreement.
<br />Section 6.2. Financial Statements. The Association agrees to furnish to the City, by no later
<br />than the August 15 following the end of each Fiscal Year until the later of the Maturity Date and the
<br />date all excess Fee Revenues and Project Fund balance, if any, have been disbursed in accordance
<br />with Section 3.4 hereof, a copy of the annual audited financial statements of the Association for the
<br />preceding Fiscal Year, including a balance sheet and operating statements, audited by an
<br />Independent certified public accountant. Such financial statements shall be accompanied by a
<br />separate written statement from such Independent certified public accountant preparing such report
<br />that such Independent accountant has obtained no knowledge of any default by the Association in
<br />the fulfillment of any of the terms, covenants, provisions or conditions of this Agreement or if such
<br />accountant shall have obtained knowledge of any such default the accountant shall disclose in such
<br />statement the default and the nature thereof, but such accountant shall not be liable directly or
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