THIS LEASE)
OR WHICH, WITH THE LAPSE OF TIME OR WITH THE GIVING OF NOTICE OR BOTH, WOULD
BECOME AN EVENT OF DEFAULT HEREUNDER.
(F)
DISCLOSURE.
THE REPRESENTATIONS OF THE COMPANY CONTAINED IN
THIS LEASE AND ANY CERTIFICATE, DOCUMENT, WRITTEN STATEMENT, OR OTHER INSTRUMENT
FURNISHED BY OR ON BEHALF OF THE COMPANY TO THE ISSUER OR PURCHASER OF THE BONDS
IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, DO NOT CONTAIN ANY
UNTRUE STATEMENT OF A MATERIAL FACT.
(G)
CONSTRUCTION.
THE COMPANY SHALL BE RESPONSIBLE FOR
COMPLIANCE WITH ALL COUNTY AND CITY LAWS AND CODES PERTAINING TO ALL
CONSTRUCTION WORK AT THE PROJECT.
ARTICLE III
LEASING CLAUSE; SECURITY; TITLE
SECTION 3.1.
LEASE OF THE PROJECT.
THE ISSUER, AS LANDLORD, HEREBY
GRANTS TO THE COMPANY, AS TENANT, A USUFRUCT IN THE PROJECT AND THE COMPANY
HEREBY LEASES FROM THE ISSUER, THE PROJECT AT THE RENTAL SET FORTH IN SECTION
5.3 HEREOF AND FOR THE TERM (AS DEFINED IN SECTION 5.1 HEREOF), IN ACCORDANCE
WITH THE PROVISIONS OF THIS LEASE.
12
SECTION 3.2.
SECURITY FOR PAYMENTS UNDER THE BONDS.
AS SECURITY FOR
THE PAYMENT OF THE BONDS, THE ISSUER SHALL EXECUTE AND DELIVER TO THE PURCHASER
THE SECURITY DEED, IN WHICH THE ISSUER SHALL GRANT UNTO THE PURCHASER, ITS
SUCCESSORS AND ASSIGNS, LEGAL TITLE (AS SECURITY) TO THE PROJECT AND SHALL
ASSIGN UNTO THE PURCHASER, ITS SUCCESSORS AND ASSIGNS, THE OTHER PLEDGED
SECURITY, AS SECURITY FOR, AMONG OTHER THINGS, THE PAYMENT OF THE BONDS.
FROM
AND AFTER THE COMPLETION DATE, AND EXCEPT WITH RESPECT TO A BREACH BY THE ISSUER
OF ITS COVENANT OF QUIET ENJOYMENT CONTAINED IN SECTION 5.2, BELOW, THE COMPANY
HEREBY AGREES THAT ITS OBLIGATIONS TO MAKE ALL PAYMENTS UNDER THIS LEASE SHALL
BE ABSOLUTE AND SHALL NOT BE SUBJECT TO ANY DEFENSE, EXCEPT PAYMENT, OR TO ANY
RIGHT OF SET OFF, COUNTERCLAIM, OR RECOUPMENT ARISING OUT OF ANY BREACH BY THE
ISSUER OF ANY OBLIGATION TO THE COMPANY, WHETHER HEREUNDER OR OTHERWISE, OR
ARISING OUT OF ANY INDEBTEDNESS OR LIABILITY AT ANY TIME OWING TO THE COMPANY BY
THE ISSUER.
THE COMPANY FURTHER AGREES THAT ALL PAYMENTS OF RENT REQUIRED TO BE
MADE UNDER THIS LEASE TO THE ISSUER (EXCEPT AS OTHERWISE PROVIDED HEREIN IN THE
CASE OF ADDITIONAL RENT) SHALL, IF REQUESTED BY THE HOLDER OF THE BONDS BE PAID
DIRECTLY BY THE COMPANY TO THE HOLDER.
SECTION 3.3.
WARRANTIES AND COVENANTS OF AUTHORITY AS TO TITLE.
THE
ISSUER HAS TITLE TO THE LEASED LAND AND ANY EXISTING LEASED IMPROVEMENTS, AND
SHALL ACQUIRE TITLE TO ANY ADDITIONS OR IMPROVEMENTS TO THE LEASED IMPROVEMENTS
THAT MAY BE THEREAFTER CONSTRUCTED OR INSTALLED ON THE LEASED LAND.
THE ISSUER
DISCLAIMS ANY INTEREST IN ANY TRADE FIXTURES OR EQUIPMENT INSTALLED AT THE
PROJECT THAT NEITHER ARE PAID FOR WITH PROCEEDS OF THE BONDS NOR CONSTITUTE
ADDITIONS, ALTERATIONS, REPLACEMENTS OR SUBSTITUTIONS THEREFOR.
THE ISSUER
WARRANTS AND COVENANTS THAT, EXCEPT FOR THE LEASE OF THE PROJECT AND OPTIONS
HEREIN GRANTED TO THE COMPANY, EXCEPT FOR ANY MECHANICS AND MATERIALMEN'S LIENS
RELATING TO THE