2018/08/08 Council Agenda Packet

c sufficient to make up any such deficiency with respect to 2018 Bonds, and if a deficiency still exists as of the twelfth (12th) day of the month prior to a Principal Payment Date and/or Interest Payment Date and after the withdrawal of cash, the District shall then draw from any Qualified Letter of Credit or Qualified Insurance for 2018 Bonds in sufficient amount to make up the deficiency. Such draw shall be made at such times and under such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance shall provide, and the draw thereon shall be made prior to requesting a loan from the City pursuant to Section 2.01(e) of this Agreement. (4) Replenishment of Deficiencies. Any deficiency created in the 2018 Reserve Account by reason of any such withdrawal or revaluation shall then be made up in twelve (12) equal monthly installments within one (1) year of the deficiency in accordance with the priorities set forth in Section 3.01(b)(2)(C) Second or may be made up with a policy or policies of Qualified Insurance or a Qualified Letter of Credit as provided above. Section 3.02. District Obligations. The 2014 PFD Refunding Bonds, Repayment Deficiency Loans, the Scoreboard Loan and 2018 Bond Payment Loans (collectively, the "District Obligations") are recognized and agreed to be the bond obligations of the District payable and subject to the priorities provided in this Agreement and shall be evidenced by a bond of the District. The full faith and credit of the District is hereby pledged for payment of the District Obligations, as evidenced by the District bond The obligation of the District to pay the District Obligations from the sources identified herein and to perform and observe the other obligations on its part contained herein shall be absolute and unconditional and shall constitute the District's "bond" for purposes of RCW 82.14.390(4), and shall not be subject to diminution by setoff, counterclaim, abatement or otherwise. Any 2014 PFD Refunding Bonds, Repayment Deficiency Loans, the Scoreboard Loan and 2018 Bond Payment Loans that remaining outstanding and unpaid at the time that title to the Events Center is transferred or reverts to the City shall be deemed fully satisfied. ARTICLE IV Covenants Section 4.01. Operation and Maintenance of Events Center. The District covenants that it will operate and maintain the Events Center as a revenue producing enterprise. The District will make such repairs to the Events Center as shall be necessary or appropriate in the prudent management thereof. The District covenants that it will operate and maintain the Events Center in a manner which will entitle it at all times to charge and collect fees, charges and rentals in accordance with use agreements, if any, or as otherwise permitted by law, and shall take all reasonable measures permitted by law to enforce prompt payment to it of such fees, charges and rentals when and as due. 15- 501534419 v3