Industrial Development Bonds. 3 Interest........................................................... 3
Industrial Development Bonds. Industrial development bonds are considered municipal bonds if the interest paid is exempt from federal income tax. They are issued by or on behalf of public authorities to raise money to finance various privately operated facilities for business and manufacturing, housing, sports, and pollution control. These bonds may also be used to finance public facilities such as airports, mass transit systems, ports, and parking. The payment of the principal and interest on such bonds is dependent solely on the ability of the facility's user to meet its financial obligations and the pledge, if any, of real and personal property financed by the bond as security for those payments. |_| Xxxxx-Xxxx Bonds. These are bonds issued under the California Xxxxx-Xxxx Community Facilities Act. They are used to finance infrastructure projects, such as roads or sewage treatment plants. In most cases they are secured by real estate taxes levied on property located in the same community as the project. This type of financing was created in response to statutory limits on real property taxes that were enacted in California. The bonds do not constitute an obligation of a municipal government. Timely payment of principal and interest depends on the ability of the developer of the project or other property owners to pay their real estate taxes. Therefore these bonds are subject to risks of nonpayment as a result of a general economic decline or decline in the real estate market, as well as the credit risk that of the developer. |_| Private Activity Municipal Securities. The Tax Reform Act of 1986 (the "Tax Reform Act") reorganized, as well as amended, the rules governing tax exemption for interest on certain types of municipal securities. The Tax Reform Act generally did not change the tax treatment of bonds issued in order to finance governmental operations. Thus, interest on general obligation bonds issued by or on behalf of state or local governments, the proceeds of which are used to finance the operations of such governments, continues to be tax-exempt. However, the Tax Reform Act limited the use of tax-exempt bonds for non-governmental (private) purposes. More stringent restrictions were placed on the use of proceeds of such bonds. Interest on certain private activity bonds is taxable under the revised rules. There is an exception for "qualified" tax-exempt private activity bonds, for example, exempt facility bonds including certain industrial development bonds, qualified mortgage...
Industrial Development Bonds. Industrial development bonds are considered municipal bonds if the interest paid is exempt from federal income tax. They are issued by or on behalf of public authorities to raise money to finance various privately operated facilities for business and manufacturing, housing, sports, and pollution control. These bonds may also be used to finance public facilities such as airports, mass transit systems, ports, and parking. The payment of the principal and interest on such bonds is dependent solely on the ability of the facility's user to meet its financial obligations and the pledge, if any, of real and personal property financed by the bond as security for those payments.
Industrial Development Bonds. (i) No event of default under the IDB Documents, the FILOT Documents or the SSRB Documents has occurred, nor any event has occurred with which notice or lapse of time or both would constitute such an event of default.
Industrial Development Bonds. Seller has provided to Buyer true, correct and complete copies of that certain Lease Agreement dated as of December 1, 1985 (the "IDB Lease") between Parisian, Inc. and the Industrial Development Board of the City of Birmingham, Alabama, and all supplements or amendments to the IDB Lease. The Industrial Development Board of the City of Birmingham, Alabama First Mortgage Industrial Revenue Bonds (Parisian, Inc. Project) Series 1985 have been paid in full. Neither Seller nor any of the Companies has paid any ad valorem taxes with respect to the Project (as defined in the IDB Lease) during the term of the IDB Lease, except for personal property taxes with respect to furniture and equipment. Seller has not received any notice (oral or written) from any Governmental Body questioning in any manner whether the Project is exempt from state and local ad valorem taxation.
Industrial Development Bonds. The Company’s Grand Junction, Colorado facility was financed by industrial development bonds as described in the SEC Reports. The Company has made all scheduled payments of principal and interest on these bonds. The bonds are collateralized by, among other things, a first mortgage on the facility, a security interest in certain equipment and an irrevocable letter of credit issued by Wxxxx Fargo Bank, N.A. (“Wxxxx Fargo”) pursuant to the terms of a reimbursement agreement between the Company and Wxxxx Fargo. The reimbursement agreement, as amended, contains financial covenants that require, among other things, that the Company maintain a minimum tangible net worth and a minimum fixed-charge coverage ratio, each as described in the SEC Reports. On April 24, 2007, Wxxxx Fargo agreed to waive the Company’s non-compliance with the fixed-charge coverage ratio for the period ended December 31, 2006 and for each subsequent quarterly period ending on or before June 30, 2007. There can be no assurances as to whether Wxxxx Fargo will provide additional waivers in the future. Exhibit A
Industrial Development Bonds. Landlord covenants, warrants and represents that tax exempt Industrial Development Bonds, sometimes referred to as Industrial Revenue Bonds ("I.R.B.s") were not used in financing the Complex or the Building. If it is subsequently determined that tax exempt I.R.B.s were used in such financing, Tenant shall have the right and option to terminate this Lease and thereafter be relieved of all further liability hereunder.
Industrial Development Bonds. The Borrower shall have obtained, in a form and substance satisfactory to the Lender, a permanent waiver or discharge from the operation of any negative pledge, or similar covenant restricting the ability of the Borrowers to grant liens over their property, contained in the Reimbursement Agreement dated as of November 1, 1987 (as amended) between CMI (as successor to Satellite Transmission Systems, Inc.) and The Bank of Tokyo - Mitsubishi, Ltd., San Franxxxxx Xxxxxx (xxccessor to Bank of Tokyo Limited, San Franxxxxx Xxxxxx).
Industrial Development Bonds. No assets of the Company or any Subsidiary or of any "Related Person," as that term is defined in Section 144(a)(3) of the Code (or Section 103 (b)(6)(C) of the Internal Revenue Code of 1954, as amended (the "1954 Code")) whether owned or leased pursuant to a capital lease, have been financed by private activity bonds within the meaning of Section 141 of the Code (or industrial development bonds within the meaning of Section 103(b) of the 1954 Code), and neither the Company nor any Subsidiary nor any Related Person is a "principal user," as that term is used in the context of Section 144(a) of the Code (or Section 103(b) of the 1954 Code) of any building which has been so financed.
Industrial Development Bonds. Buyer will not knowingly take any action, permit any action to be taken or omit to take any action, which act or omission would adversely affect the exemption from federal income taxation of interest paid on the City of Texas City Industrial Development Corporation's Marine Terminal Refunding Revenue Bonds, Series 1990 (ARCO Pipe Line Company Project). In the event Buyer unknowingly takes any such action or omits to take any such action, Buyer will, upon receiving notice of such action or omission, promptly take such reasonable actions as may be necessary to rescind or otherwise remedy the effect of such action or omission.
