2018/08/08 Council Agenda Packet

C Section 4.02. Insurance Subject in each case to the condition that insurance is obtainable at reasonable rates from responsible insurers and upon reasonable terms and conditions: (a) The District shall procure or provide and maintain, at all times while any of the 2018 Bonds and District Obligations shall be outstanding, insurance with respect to the Events Center against such risks as are usually insured by other comparable municipal facilities. Such insurance shall be in such amount as shall be determined by the District to be reasonable relative to the risks insured against. (b) The District shall secure and maintain fidelity insurance or bonds on all officers and employees handling or responsible for funds of the District in such amounts as shall be determined by the District to be reasonable relative to the risks insured against. (c) Anything in this Section to the contrary notwithstanding, the District shall not be required to maintain insurance with respect to the Events Center pursuant to this Section if the District determines that it is not available from responsible insurers at a commercially reasonable cost. (d) The proceeds of any insurance shall be applied solely for Events Center purposes. Section 4.03. Financial Records and Statements. The District shall maintain proper books and records in which full and correct entries shall be made of all its business and affairs in accordance with generally accepted accounting principles for governmental entities, of all its business and affairs. The District shall have an annual audit conducted by the Washington State Auditor's Office. Section 4.04. Pledge to Levy Taxes. The District Obligations are recognized and agreed to be the bond obligations of the District. The District hereby irrevocably covenants and agrees with the City for as long as any of the District Obligations and Additional Bonds are outstanding, that each year it will continue to levy the Taxes authorized pursuant to RCW 82.14.390. Section 4.05. Tax Exemption. (a) Arbitrage Bonds. The District covenants that it will not make any use of the proceeds from the sale of the 2014 PFD Refunding Bonds or any other money or obligations of the District or the City that may be deemed to be proceeds of the 2014 PFD Refunding Bonds pursuant to Section 148(a) of the Code that will cause the 2014 PFD Refunding Bonds to be "arbitrage bonds" within the meaning of said Section and said regulations. The District will comply with the applicable requirements of Section 148(a) of the Code throughout the term of the 2014 PFD Refunding Bonds. The District covenants that it will not act or fail to act in a manner that will cause the 2014 PFD Refunding Bonds to be considered obligations not described in Section 103(a) of the Code. (b) Private Activity Bonds. The District shall take no actions and shall make no use of the proceeds of the 2014 PFD Refunding Bonds, or any other funds, that would cause the 6-46- 501534419 v3