Common use of Restriction on Owners’ Action Clause in Contracts

Restriction on Owners’ Action. In addition to the other restrictions on the rights of Owners to request action upon the occurrence of an Event of Default and to enforce remedies set forth in this Article, no Owner of any of the Bonds will have any right to institute any suit, action or proceeding in equity or at law for the enforcement of this Indenture or any remedy under this Indenture or the Bonds, unless (i) the Owner has given to the Trustee written notice of an Event of Default; (ii) the Majority Holders also have made written request of the Trustee to institute the suit, action, proceeding or other remedy, after the right to exercise the powers or rights of action, as the case may be, has accrued, and have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers granted in this Indenture or to institute the action, suit or proceeding in its or their name; (iii) there has been offered to the Trustee security and indemnity reasonably satisfactory to it against the costs, expenses and liabilities (including reasonable attorneys’ fees, costs and expenses) to be incurred; and (iv) the Trustee has not complied with the request within a reasonable time. Such notification, request and offer of indemnity are declared, at the option of the Trustee, to be conditions precedent to the execution of the trusts of this Indenture or for any other remedy under this Indenture. It is intended that no one or more Owners of the Bonds secured by this Indenture will have any right to affect, disturb or prejudice the security of this Indenture, or to enforce any right under this Indenture or the Bonds, except in the manner provided for in this Indenture, and that all proceedings at law or in equity will be instituted, had and maintained in the manner provided in this Indenture and for the benefit of all Owners of Outstanding Bonds. Nothing in this Indenture will affect or impair the right of the Owners to enforce payment of the Bonds in accordance with their terms.

Restriction on Owners’ Action. In addition to the other restrictions on the rights of Owners to request action upon the occurrence of an Event of Default and to enforce remedies set forth in this Article, no (a) No Owner of any of the Bonds will shall have any right to institute any suitaction, action suit or proceeding at law or in equity or at law for the enforcement of this Master Indenture or for the execution of any trust thereof or any other remedy under this Indenture or the Bondshereunder, unless (i) the Owner a default has given to occurred and is continuing of which the Trustee written notice of has been notified in writing, (ii) such default has become an Event of Default; (ii) Default and the Majority Holders also Owners of a Quarter in Interest of the Improvement Area #3 Bonds then Outstanding have made written request of to the Trustee to institute the suit, action, proceeding or other remedy, after the right to exercise the powers or rights of action, as the case may be, has accrued, and have afforded the Trustee a offered it reasonable opportunity either to proceed to exercise the powers hereinbefore granted in this Indenture or to institute the such action, suit or proceeding in its or their own name; , (iii) there has been offered the Owners have furnished to the Trustee security and written evidence of indemnity reasonably satisfactory to it against the costsas provided in Section 9.2, expenses and liabilities (including reasonable attorneys’ fees, costs and expenses) to be incurred; and (iv) the Trustee has not complied for ninety (90) days after such notice failed or refused to exercise the powers hereinbefore granted, or to institute such action, suit, or proceeding in its own name, (v) no direction inconsistent with such written request has been given to the request within Trustee during such 90- day period by the registered owners of a reasonable time. Such notification, request and offer of indemnity are declared, at the option majority of the Trusteeaggregate principal amount of the Improvement Area #3 Bonds then Outstanding, to be conditions precedent and (vi) notice of such action, suit, or proceeding is given to the execution of the trusts of this Indenture or for any other remedy under this Indenture. It is intended that Trustee; however, no one or more Owners of the Improvement Area #3 Bonds secured by this Indenture will shall have any right in any manner whatsoever to affect, disturb disturb, or prejudice the security of this IndentureMaster Indenture by its, his or their action or to enforce any right under this Indenture or the Bonds, hereunder except in the manner provided for in this Indentureherein, and that all proceedings at law or in equity will shall be instituted, had instituted and maintained in the manner provided in this Indenture herein and for the equal benefit of the registered owners of all Owners Improvement Area #3 Bonds then Outstanding. The notification, request and furnishing of Outstanding Bonds. Nothing indemnity set forth above shall be conditions precedent to the execution of the powers and trusts of this Master Indenture and to any action or cause of action for the enforcement of this Master Indenture or for any other remedy hereunder. (b) Subject to Article 7, nothing in this Master Indenture will shall affect or impair the right of any Owner to enforce, by action at law, payment of any Bond at and after the maturity thereof, or on the date fixed for redemption or the obligation of the City to pay each Bond issued hereunder to the respective Owners thereof at the time and place, from the source and in the manner expressed herein and in the Improvement Area #3 Bonds. (c) In case the Trustee or any Owners shall have proceeded to enforce any right under this Master Indenture and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Trustee or any Owners, then and in every such case the City, the Trustee and the Owners shall be restored to enforce payment their former positions and rights hereunder, and all rights, remedies and powers of the Bonds in accordance with their termsTrustee shall continue as if no such proceedings had been taken.

Restriction on Owners’ Action. In addition (a) Except to the other restrictions on enforce the rights of Owners to request action upon the occurrence of an Event of Default and to enforce remedies set forth in this Articlegiven under Section 6.2(a)(iv), no Owner of any of the Bonds will Obligation shall have any right to institute any suitaction, action suit or proceeding at law or in equity or at law for the enforcement of this Indenture or for the execution of any trust thereof or any other remedy under this Indenture or the Bondshereunder, unless (i) the Owner a default has given to occurred and is continuing of which the Trustee written notice has been notified in writing as provided in Section 10.1, or of which by such Section it is deemed to have notice, (ii) such default has become an Event of Default; (ii) Default and the Majority Holders also Owners of 25% of the aggregate principal amount of the Obligations then Outstanding have made written request of to the Trustee to institute the suit, action, proceeding or other remedy, after the right to exercise the powers or rights of action, as the case may be, has accrued, and have afforded the Trustee a offered it reasonable opportunity either to proceed to exercise the powers hereinbefore granted in this Indenture or to institute the such action, suit or proceeding in its or their own name; , (iii) there has been the Owners have offered to the Trustee security and indemnity reasonably satisfactory to it against the costsas provided in Section 9.6, expenses and liabilities (including reasonable attorneys’ fees, costs and expenses) to be incurred; and (iv) the Trustee has not complied for 60 days after such notice failed or refused to exercise the powers hereinbefore granted, or to institute such action, suit or proceeding in its own name, (v) no direction inconsistent with such written request has been given to the request within a reasonable time. Such notificationTrustee during such 60-day period by the Required Owners, request and offer (vi) notice of indemnity are declaredsuch action, at the option of suit or proceeding is given to the Trustee; provided, to be conditions precedent to the execution of the trusts of this Indenture or for any other remedy under this Indenture. It is intended that however, no one or more Owners of the Bonds secured by this Indenture will Obligations shall have any right in any manner whatsoever to affect, disturb or prejudice the security of this IndentureIndenture by its, his or their action or to enforce any right under this Indenture or the Bonds, hereunder except in the manner provided for in this Indentureherein, and that all proceedings at law or in equity will shall be instituted, had instituted and maintained in the manner provided in herein and for the equal benefit of the Owners of all Obligations then Outstanding. The notification, request and offer of indemnity set forth above shall, at the option of the Trustee, be conditions precedent to the execution of the powers and trusts of this Indenture and to any action or cause of action for the benefit enforcement of all Owners of Outstanding Bonds. this Indenture or for any other remedy hereunder. (b) Nothing in this Indenture will shall affect or impair the right of any Owner to enforce, by action at law, payment of any Obligation at and after the maturity thereof, or on the date fixed for redemption or the obligation of the City to pay each Obligation issued hereunder to the respective Owners thereof at the time, place, from the source and in the manner expressed herein and in the Obligations. (c) In case the Trustee or any Owners shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Trustee or any Owners, then and in every such case the City, the Trustee and the Owners shall be restored to enforce payment their former positions and rights hereunder, and all rights, remedies and powers of the Bonds in accordance with their termsTrustee shall continue as if no such proceedings had been taken.

Restriction on Owners’ Action. In addition to the other restrictions on the rights of Owners to request action upon the occurrence of an Event of Default and to enforce remedies set forth in this Article, no (A) No Owner of any of the Bonds will Bond shall have any right to institute any suit, action suit or proceeding at law or in equity or at law for the enforcement or violation of any provision of this Indenture or the execution of any trust under this Indenture or for any remedy under this Indenture or the BondsIndenture, unless (i) the such Owner has shall have previously given to the Trustee written notice of the happening of an Event of Default; (ii) , as provided in this Article, and the Majority Holders also Owners of at least a majority in principal amount of the Bonds then Outstanding shall have made filed a written request of with the Trustee to institute the suit, action, proceeding or other remedy, after the right to exercise the powers or rights of action, as the case may be, has accruedTrustee, and shall have afforded the Trustee a offered it reasonable opportunity either to proceed to exercise the powers granted in this Indenture or by the laws of the State of California or to institute the action, such suit or proceeding in its or their own name; (iii) there has been , and unless such Owners shall have offered to the Trustee adequate security and indemnity reasonably satisfactory to it against the costs, expenses and liabilities (including reasonable attorneys’ fees, costs and expenses) to be incurred; incurred therein or thereby, and (iv) the Trustee has not complied shall have refused or failed to comply with the such request within a reasonable time. Such notification60 days after receipt by it of such notice, request and offer of indemnity are declaredindemnity, at the option of the Trustee, to be conditions precedent to the execution of the trusts of this Indenture or for any other remedy under this Indenture. It is it being understood and intended that no one or more Owners of the Bonds secured by this Indenture will shall have any right in any manner whatever by its or their action to affect, disturb or prejudice the security of pledge created by this Indenture, or to enforce any right under this Indenture or the Bonds, except in the manner provided for in this Indenture, and that all proceedings at law or in equity will be instituted, had and maintained in the manner provided in this Indenture and for the benefit of all Owners of Outstanding Bonds. (B) Nothing in this Indenture will or in the Bonds contained shall affect or impair the obligation of SANDAG, which is absolute and unconditional, to pay at the respective dates of maturity and places therein expressed the principal of and interest on the Bonds to the respective Owners thereof, or affect or impair the right of the Owners action, which is also absolute and unconditional, of any Owner to enforce such payment of its Bond from the Bonds in accordance with their termssources provided herein.