Common use of Option B - Redemption of Bonds Clause in Contracts

Option B - Redemption of Bonds. The Borrower may elect to have such Net Proceeds deposited in the Revenue Fund; provided either (i) the Borrower elects to prepay all Loan Payments pursuant to Section 9.2 hereof and cause all the Bonds to be redeemed (without premium or penalty) in accordance with Section 402(d) of the Indenture at the earliest practical date, or (ii) the Borrower elects to prepay Loan Payments pursuant to Section 9.2 hereof and cause part of the Bonds to be redeemed (without premium or penalty) pursuant to Section 402(d) of the Indenture and the property suffering such casualty loss, condemnation or loss of title was not essential to the use of the Project in a manner that will result in any of the representations or warranties respecting the Project and the use of the proceeds of the Bonds being false, untrue, misleading or breached and provided further that an expert appraiser retained by the Borrower and reasonably acceptable to the Trustee delivers to the Trustee its written opinion, appraisal or certificate showing that the ratio of the fair market value at a foreclosure sale of the Project immediately prior to the occurrence or discovery of such casualty loss, condemnation or loss of title to the principal amount of the Bonds then Outstanding is no greater than the ratio of the then current market value at a foreclosure sale of the Project to the principal amount of the Bonds to be Outstanding after the application of such Net Proceeds and any other moneys deposited in the Revenue Fund by the Borrower for the redemption of Bonds. In the event such Net Proceeds do not exceed $1,000,000 and the Credit Enhancer consents in writing to the action described in the third paragraph of this Section or the Borrower shall elect Option A, (i) the Borrower shall complete the repair, reconstruction, restoration, replacement and re-equipping of the Project free from all liens other than Permitted Encumbrances, whether or not such Net Proceeds are sufficient to pay for the same; (ii) the Borrower shall not be entitled to any reimbursement from the Issuer, the Trustee, the Credit Enhancer or the Bondowners or any abatement or diminution of its obligations hereunder by reason of any payments made by the Borrower for such purpose in excess of the Net Proceeds; and (iii) all such repairs, reconstructions, restorations, replacements and re-equipping shall be a part of the Project and shall be subjected to the lien and security interest of the Credit Documents and the Borrower shall take any actions which the Credit Enhancer reasonably deems necessary or appropriate to so subject them to the Credit Documents. Notwithstanding anything herein to the contrary, if Xxxxxx Financial, Inc. is no longer the Credit Enhancer, the Borrower shall have no obligation to repair, reconstruct, restore, replace or re-equip the Project (unless such Net Proceeds are made available to the Borrower for such purpose).

Option B - Redemption of Bonds. The Borrower Obligor may elect to have such Net Proceeds deposited in the Revenue Bond Fund; provided either (i) the Borrower Obligor elects to prepay all Loan Payments the Note in full pursuant to Section 9.2 hereof and cause all the Bonds to be redeemed (without premium or penalty) in accordance with paragraph (b) of Section 402(d) 302 of the Indenture at the earliest practical date, or (ii) the Borrower Obligor elects to prepay Loan Payments the Note in part pursuant to Section 9.2 hereof and cause part of the Bonds to be redeemed (without premium or penalty) pursuant to paragraph (b) of Section 402(d) 302 of the Indenture and the property suffering such casualty loss, condemnation or loss of title was not essential to the use of the Project in a manner that will not result in any of the representations or warranties respecting the Project and the use of the proceeds of the Bonds being false, untrue, misleading or breached and provided further that an expert appraiser retained by the Borrower and reasonably acceptable to the Trustee delivers to the Trustee its written opinion, appraisal or certificate showing that the ratio of the fair market value at a foreclosure sale of the Project immediately prior to the occurrence or discovery of such casualty loss, condemnation or loss of title to the principal amount of the Bonds then Outstanding is no greater than the ratio of the then current market value at a foreclosure sale of the Project to the principal amount of the Bonds to be Outstanding after the application of such Net Proceeds and any other moneys deposited in the Revenue Bond Fund by the Borrower Obligor for the redemption of Bonds. In the event such Net Proceeds do not exceed $1,000,000 and the Credit Enhancer consents in writing to the action described in the third paragraph of this Section 50,000 or the Borrower Obligor shall elect Option A, (i) the Borrower Obligor shall complete the repair, reconstruction, restoration, replacement and re-equipping improvement of the Project free from all liens other than Permitted Encumbrances, whether or not such Net Proceeds are sufficient to pay for the same; (ii) the Borrower Obligor shall not be entitled to any reimbursement from the Issuer, the Trustee, the Credit Enhancer Trustee or the Bondowners or any abatement or diminution of its obligations hereunder by reason of any payments made by the Borrower Obligor for such purpose in excess of the Net Proceeds; and (iii) all such repairs, reconstructions, restorations, replacements and re-equipping improvements shall be a part of the Project and shall be subjected to the lien and security interest of the Credit Documents and the Borrower shall take any actions which the Credit Enhancer reasonably deems necessary or appropriate to so subject them to the Credit Documents. Notwithstanding anything herein to the contrary, if Xxxxxx Financial, Inc. is no longer the Credit Enhancer, the Borrower shall have no obligation to repair, reconstruct, restore, replace or re-equip the Project (unless such Net Proceeds are made available to the Borrower for such purpose)Project.

Option B - Redemption of Bonds. The Borrower Obligor may elect to have such Net Proceeds deposited in the Revenue Bond Fund; provided either (i) the Borrower Obligor elects to prepay all Loan Payments the Note in full pursuant to Section 9.2 hereof 8.2 and cause all the Bonds to be redeemed (without premium or penalty) in accordance with Section 402(dparagraph (b) of Section 302 of the Indenture First Supplement at the earliest practical date, or (ii) the Borrower Obligor elects to prepay Loan Payments the Note in part pursuant to Section 9.2 hereof 8.2 and cause part of the Bonds to be redeemed (without premium or penalty) pursuant to Section 402(dparagraph (b) of Section 302 of the Indenture First Supplement and the property suffering such casualty loss, condemnation or loss of title was not essential to the use of the Series 2004 Project in a manner that will not result in any of the representations or warranties respecting the Series 2004 Project and the use of the proceeds of the Bonds being false, untrue, misleading or breached and provided further that an expert appraiser retained by the Borrower and reasonably acceptable to the Trustee delivers to the Trustee its written opinion, appraisal or certificate showing that the ratio of the fair market value at a foreclosure sale of the Series 2004 Project immediately prior to the occurrence or discovery of such casualty loss, condemnation or loss of title to the principal amount of the Bonds then Outstanding is no greater than the ratio of the then current market value at a foreclosure sale of the Series 2004 Project to the principal amount of the Bonds to be Outstanding after the application of such Net Proceeds and any other moneys deposited in the Revenue Bond Fund by the Borrower Obligor for the redemption of Bonds. In the event such Net Proceeds do not exceed $1,000,000 and the Credit Enhancer consents in writing to the action described in the third paragraph of this Section 50,000 or the Borrower Obligor shall elect Option A, (i) the Borrower Obligor shall complete the repair, reconstruction, restoration, replacement and re-equipping improvement of the Series 2004 Project free from all liens other than Permitted Encumbrances, whether or not such Net Proceeds are sufficient to pay for the same; (ii) the Borrower Obligor shall not be entitled to any reimbursement from the Issuer, the Trustee, the Credit Enhancer Trustee or the Bondowners or any abatement or diminution of its obligations hereunder by reason of any payments made by the Borrower Obligor for such purpose in excess of the Net Proceeds; and (iii) all such repairs, reconstructions, restorations, replacements and re-equipping improvements shall be a part of the Project and shall be subjected to the lien and security interest of the Credit Documents and the Borrower shall take any actions which the Credit Enhancer reasonably deems necessary or appropriate to so subject them to the Credit Documents. Notwithstanding anything herein to the contrary, if Xxxxxx Financial, Inc. is no longer the Credit Enhancer, the Borrower shall have no obligation to repair, reconstruct, restore, replace or re-equip the Project (unless such Net Proceeds are made available to the Borrower for such purpose)Series 2004 Project.