Debt Contracts Clause Samples

Debt Contracts. (a) The District will not issue any bonds, notes, time warrants, or other obligations (collectively, “obligations”), including refunding obligations, with a term of greater than 30 years from their date of initial issuance. No obligations issued by the District shall mature after January 1, 2060. While any obligations are outstanding, debt service on such obligations shall be amortized, on any finished lot, annually on a substantially level basis, and assessments levied and collected by the District to pay such debt service shall be substantially level throughout the term of any such obligations issued. (b) The District shall not initiate the issuance of any debt, bonds, notes, time warrants or other obligations, including refunding obligations, until 30 days after it has provided the City with Notice of its intent and the material elements of the proposed debt issuance, including the amount, the repayment plan or structure, and the length of the debt obligation. (c) The failure of the District to comply with a provision of this section shall be an event of default under Section 9.1. An event of default defined in this subsection shall entitle the City to suspend all performance of the Agreement for any portion of the Property that will be subject to an assessment for the repayment of the debt obligation, in addition to all other remedies provided in Section 9.2.