1999 AGN MAR 16 I14 - Laserfiche WebLink

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WHEREAS, the City has adopted its Resolution No. , dated March 1999, which approves the Agreement and provides for the transfer of available funds of the City, subject to annual appropriation each fiscal year, to the Agency and creates an indebtedness of the Agency to the City in support of the obligation of the Agency to cure any deficiency in the Debt Service Reserve Fund, as provided in the Loan Agreement. NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: Section 1. The City agrees to make a loan to the Agency from time to time (an "Advance"), from available funds of the City, in an amount sufficient to enable the Agency to replenish the Debt Service Reserve Fund to Seventy Five Thousand Dollars ($75,000.00), upon notice from the Agency that (i) it has received notice from the trustee of the Debt Service Reserve Fund ("DSRF Trustee") that on the immediately preceding quarterly valuation date with respect to the Debt Service Reserve Fund there was a deficiency in the Debt Service Reserve Fund and the amount of the deficiency and (ii) it is unable to cure the deficiency (an "Agency Shortfall") and, the amount of the Agency Shortfall. Section 2. The obligation of the City to provide Advances to the Agency during each fiscal year is expressly acknowledged by the Agency to be a special and limited obligation of the City payable solely from the funds described herein, and that Advances to the Agency in each fiscal year shall be subject to annual appropriation by the City solely from available funds of the City in each fiscal year. The City and the Agency each acknowledge,understand and intend that the obligation of the City to loan funds to the Agency under this Agreement shall constitute a current expense of the City to support the Mortgage Assistance Loan Program and other authorized economic development programs of the Agency. Furthermore, the obligation of the City to the Agency as arises under this Agreement during each fiscal year shall not in any way be construed to be a debt of the City in contravention of any applicable constitutional restriction of the State concerning the creation of indebtedness by the City, nor shall anything contained in the Loan Agreement or this Agreement be deemed to constitute a pledge of the general tax revenues, funds or monies of the City. The City hereby covenants with the Agency that during each fiscal year of the term of this Agreement, the City shall take all appropriate action to appropriate and\or reserve available funds (exclusive of CDBG funds or any other use restricted funds or accounts of the City) to make Advances to the Agency as provided in Section 1 hereof. Section 3. The Loan Agreement provides that on the Closing Date (as that term is defined in the Loan Agreement) the Agency shall transfer, from Loan proceeds, the amount of Seventy Five Thousand Dollars ($75,000.00) to the Debt Service Reserve Fund. Quarterly on each January 1, April 1, July 1 and October 1, commencing July 1, 1999, the DSRF Trustee is to calculate the amount of the moneys and any securities held in the Debt Service Reserve Fund. If, on such quarterly valuation date, the 2