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2009_0608_Packet
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2009_0608_Packet
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7/28/2009 2:42:44 PM
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Attachment B <br />indirectly to any party for failure to obtain knowledge of any default. The Association and the City <br />agree and understand that compliance with this Section constitutes compliance with Section 7(a) of <br />the Enabling Ordinance. <br />Section 6.3. Financial Plan; Annual Reports. The Association agrees to furnish to the City, <br />by no later than 120 days after the end of each Fiscal Year until the later of the Maturity Date and <br />the date all excess Fee Revenues and Project Fund balance, if any, have been disbursed in <br />accordance with Section 3.4 hereof, an updated Financial Plan for the Property prepared by a <br />Reserve Specialist acceptable to the City, in substantially the form of the initial Financial Plan and <br />providing plans for capital improvements to the Property through the Maturity Date. <br />Section 6.4. Records and Inspection. The Association shall maintain (i) copies of federal, <br />state, municipal and other licenses and permits obtained by the Association relating to the operation <br />of the Property, the Housing Improvements, (ii) financial books and records reflecting the <br />operations of the Property, the Housing Improvements, and (iii) all other documents, instruments, <br />reports and records required by any provision of this Agreement or the Financial Plan or by law <br />relating to the Property or the affairs of the Association. The City shall have the right to inspect all <br />such materials, except any materials made private or confidential by federal or state law or <br />regulation, and the Property at all reasonable times and to make such copies and e�tracts as it may <br />desire. At the request of the City the Association shall furnish to the City, at the Association's <br />expense, a copy of any such materials which are required by the City in the performance of its <br />duties under this Agreement, the Enabling Ordinance, the Fee Resolution or the Act. <br />Section 6.5. Maintenance of Propertv. The Association agrees that so long as the Bonds are <br />outstanding the Association will keep or cause to be kept the Housing Improvements in good repair <br />and good operating condition at its own cost. The Association shall make all repairs, replacements <br />and improvements to the Property specified in the Financial Plan, as such plan may be amended in <br />accordance with Section 6.3 hereof. <br />Section 6.6. Covenant to Maintain Net Revenues Available for Debt Service. (a) In the <br />event that, 10 business days before any Payment Date, the Net Revenues Available For Debt <br />Service are less than 105 percent of the total principal and interest due on the Bonds on such <br />Payment Date, the City will provide written notice to the Association of such fact and the amount of <br />the deficiency. The City will use reasonable efforts to investigate the reason for the deficiency and <br />will briefly describe the results of such investigation, if any, in the written notice. Within 10 days <br />after receipt of such notice of deficiency in Net Revenues Available for Debt Service, the <br />Association shall be liable for and shall pay the City such deficiency. Failure on the part of the City <br />to provide the notice of the deficiency at the time specified herein shall not relieve the Association <br />of its obligation to make the required payment 10 days after the actual notice of the deficiency is <br />provided by the City to the Association. Failure on the part of the Association to make the required <br />payment under this Section within 10 days after receipt of notice thereof shall entitle the City to <br />exercise its remedies under this Agreement, notwithstanding any cure period provided in Article VII <br />hereof. <br />(b) In the event that the Association makes any payment to the City under Section 6.6(a), <br />and a balance of Fee Revenues remains in the Debt Service Fund on the Maturity Date, then on or <br />promptly after the Maturity Date the City shall return to the Association the amount of the prior <br />13 <br />
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