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Port Gardner Bay Outfall Replacement Agreement <br /> govern the Joint Use Facilities. As a further condition for consent, the non-assigning <br /> Participant may (a) require reasonable documentation showing that the proposed assignee <br /> has adequate financial capability to assume responsibility for construction or operation <br /> and maintenance, as applicable, or(b)require financial assurance (e.g., bond or letter of <br /> credit) to remain in effect, as applicable, for three (3)years in an amount equal to one-half <br /> of the Construction Budget or the total Annual O&M Budgets for the prior three (3) <br /> years. <br /> 16. PROTECTION OF INVESTMENT <br /> 16.1 Security Interests <br /> To secure performance of its obligations hereunder, K-C hereby grants and conveys to the <br /> City a security interest in the real and personal property of the Joint Use Facilities. The <br /> parties agree to execute such other documents as may be reasonably necessary to perfect <br /> the security interests granted herein, (e.g., deeds of trust or financing statement). The <br /> security interests granted by this Agreement may be exercised in the event of default by <br /> the non-defaulting Participant and shall be subordinated to security interests subsequently <br /> granted by a Participant in the ordinary course of financing a Participant's ordinary <br /> business. <br /> 16.2 Option <br /> 16.2.1 To further secure its obligations hereunder, each Participant grants to the <br /> other Participant an option to purchase their respective interest in the Joint <br /> Use Facilities. Except as provided in Section 15.2 (Assignment), the option <br /> 34 of 46 <br />