Ordinance 1993-1099 - Laserfiche WebLink

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Upon a Determination of Taxability as defined in Section 1.01 of the Indenture, whereby the interest accruing on this Bond becomes includable in the gross income of the Holder (other than a substantial user of the Project or a related person) for the purpose of Federal income taxation, the Holder may exercise its option of mandatory redemption of this Bond in whole, or in the alternative, the Outstanding Principal amount of this Bond shall bear interest at an annual rate of one percent (1.00%) over the prime rate of interest charged by Bank One, Boulder, N.A., fixed as of the date of such Determination, or the 8.00% interest rate set forth herein, whichever is higher, from and after the date of the Event of Taxability. The Holder must make its election within 60 days of the date of such Determination by written notice to the Trustee. Upon receipt thereof, the Trustee will either: (a) notify the Borrower of the mandatory redemption pursuant to Section 5.01 of the Indenture, or (ii) notify the Borrower of the increase in interest rate on the Bond and of borrower's obligation, pursuant to Section 5.01 of the Loan Agreement, to pay to Trustee on behalf of the City, within sixty (60) days of receipt of such written notice from the Trustee, the aggregate difference between: ( i) the payments actually made between the date of the Event of Taxability and the date of the Determination of Taxability, and ( ii) the payments which would have been made during such period if the aforementioned increased interest rate had been in effect. This Bond is issued under the County and Municipality Development Revenue Bond Act, Title 29, Article 3, Part 1, Colorado Revised Statutes 1973, as amended, (the "Act"), and in conformity with the provisions, restrictions and limitations thereof. This Bond does not constitute a charge against the general credit or taxing powers of the City and does not grant to the Holder of this Bond any rights to have the City levy any taxes of appropriate any funds for the payment of the principal hereof or interest hereon, nor is this Bond a general obligation of the City or the individual officers or agents thereof. This Bond and interest hereon are payable solely and only from the moneys received under the Loan Agreement, as amended, dated as of June 1, 1981, between the City and the "Borrower" hereinafter described, or from the moneys held by the Trustee in the Bond Fund appropriated to the payment of the Series 1981 Bond under the Indenture, including Loan Repayments to be made by Regal Investment Associates, Limited, a Colorado limited partnership duly formed and existing under the laws of the State of Colorado (the "Borrower"). This Bond has been authorized by law to be issued and has been issued for the purpose of funding a loan from the City to the Borrower to enable the Borrower to develop as a site, land within the Ci ty , and to construct and erect a building or buildings thereon, for the purpose of leasing commercial office space to others (the "Project"), pursuant to the Loan Agreement, the Bond Ordinance of the City finally passed and adopted on or about February 17, 1981, as amended, and the Trust Indenture duly - 6 -