OR TERMINATION OF THIS LEASE AGREEMENT.
IT IS UNDERSTOOD AND
AGREED THAT (A) THIS LEASE AGREEMENT (AND THE PAYMENTS DUE HEREUNDER) WILL BE
ASSIGNED TO THE PURCHASERS AS SECURITY FOR THE PAYMENT OF THE PRINCIPAL OF AND
INTEREST ON THE BONDS, AND (B) THE PREMISES WILL BE MORTGAGED TO THE PURCHASERS
PURSUANT TO THE MORTGAGE AS SECURITY FOR THE PAYMENT OF THE PRINCIPAL OF AND
INTEREST ON THE BONDS.
13
ARTICLE VI
EVENTS OF DEFAULT AND REMEDIES
SECTION 6.1
EVENTS OF DEFAULT.
THE OCCURRENCE OF ANY ONE OF THE
FOLLOWING SHALL CONSTITUTE AN EVENT OF DEFAULT:
(A)
FAILURE BY THE COMPANY TO PAY WHEN DUE ANY PAYMENT REQUIRED TO BE
MADE UNDER SECTION 2.3 HEREOF, WHICH FAILURE SHALL CONTINUE FOR A PERIOD OF TEN
(10) DAYS.
(B)
FAILURE BY THE COMPANY TO OBSERVE AND PERFORM ANY COVENANT,
CONDITION OR AGREEMENT ON ITS PART TO BE OBSERVED OR PERFORMED, WHICH FAILURE
SHALL CONTINUE (I) FOR A PERIOD OF THIRTY (30) DAYS AFTER WRITTEN NOTICE,
SPECIFYING SUCH FAILURE AND REQUIRING THAT IT BE REMEDIED, IS GIVEN TO THE
COMPANY BY THE CITY OR THE PURCHASERS, UNLESS THE CITY AND THE PURCHASERS SHALL
AGREE IN WRITING TO AN EXTENSION OF SUCH TIME PRIOR TO ITS EXPIRATION, OR (II)
FOR SUCH LONGER PERIOD AS MAY BE NECESSARY TO REMEDY SUCH DEFAULT PROVIDED
CORRECTIVE ACTION IS INSTITUTED BY THE COMPANY WITHIN THE APPLICABLE PERIOD AND
IS BEING DILIGENTLY PURSUED.
(C)
THE DISSOLUTION OR LIQUIDATION OF THE COMPANY OR THE FILING BY THE
COMPANY OF A VOLUNTARY OR INVOLUNTARY PETITION IT BANKRUPTCY, OR FAILURE BY THE
COMPANY PROMPTLY TO LIFT ANY EXECUTION, GARNISHMENT OR ATTACHMENT OF SUCH
CONSEQUENCE AS WILL IMPAIR ITS ABILITY TO CARRY OUT ITS OBLIGATIONS UNDER THIS
LEASE AGREEMENT, OR AN ASSIGNMENT BY THE COMPANY FOR THE BENEFIT OF ITS
CREDITORS, OR THE ENTRY BY THE COMPANY INTO AN AGREEMENT OF COMPOSITION WITH ITS
CREDITORS, OR THE APPROVAL BY A COURT OF COMPETENT JURISDICTION OF A .PETITION
APPLICABLE TO THE COMPANY IN ANY PROCEEDING FOR ITS REORGANIZATION INSTITUTED
UNDER THE PROVISIONS OF ANY BANKRUPTCY ACT, OR UNDER ANY SIMILAR ACT WHICH MAY
HEREAFTER BE ENACTED.
SECTION 6.2
REMEDIES ON DEFAULT.
WHENEVER ANY EVENT OF DEFAULT
HEREUNDER SHALL HAVE HAPPENED AND BE CONTINUING, THE PURCHASERS, OR THE CITY
WITH THE PRIOR CONSENT OAF THE PURCHASERS, MAY TAKE ONE OR ANY COMBINATION OF
THE FOLLOWING REMEDIAL STEPS:
(A)
RE-ENTER AND TAKE POSSESSION OF THE PREMISES, ENFORCING THIS LEASE
AGREEMENT OR TERMINATING THIS LEASE AGREEMENT, AND SELL OR LEASE THE PREMISES,
HOLDING THE COMPANY LIABLE FOR ALL RENT AND OTHER PAYMENTS DUE UP TO THE
EFFECTIVE DATE OF SUCH SELLING OR LEASING AND FOR THE DIFFERENCE IN THE PURCHASE
PRICE, RENT AND OTHER AMOUNTS PAID BY THE PURCHASER OR LESSEE PURSUANT TO SUCH
SALE OR LEASE AND THE RENTS AND OTHER AMOUNTS PAYABLE BY THE COMPANY HEREUNDER;
AND
(B)
TAKE WHATEVER ACTION AT LAW OR IN EQUITY MAY APPEAR NECESSARY OR
DESIRABLE TO COLLECT THE RENT THEN DUE AND THEREAFTER TO BECOME DUE, OR TO