Agenda 07/12/2005 - Laserfiche WebLink

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been remedied, then the holders of such majority in principal amount of the Outstanding Note may waive such default and annul such declaration. In case an Event of Default shall occur, subject to the provisions referred to in the preceding paragraph, the Noteholder shall have the right to protect the rights vested in such Noteholder by the Ordinance by such appropriate judicial proceeding as such Noteholder shall determine either by suit in equity or by action at law. (b) As to the Bond, each of the following shall constitute an event of default hereunder: (i) Failure to pay the principal of the Bond when due; (ii) Failure to pay interest on the Bond when due; (iii) Failure of the City to perform any other covenant or agreement contained in this Ordinance, which failure shall have continued for 60 days after the notice thereof from the Bondholder; provided, however, that if any such failure shall be such that it cannot be cured or corrected within a 60-day period but is, in fact, susceptible of cure or correction, it shall not constitute an Event of Default if curative or corrective action is instituted within said period and diligently pursued until the failure of performance is cured or corrected; (vi) The instituting of any proceeding with the consent of the City for the purpose of effecting composition between the City and its creditors or for the purpose of reducing the claims of creditors pursuant to any federal or state statute; or (vii) If the City for any reason shall be rendered incapable of fulfilling its obligations under this Ordinance as to the Bond. Upon the occurrence of an Event of Default, the Bondholder may declare the principal of all of the Outstanding Bond and all accrued and unpaid interest thereon to be due and payable immediately. This provision is subject to the condition that if, at any time after such declaration and before any such further action has been taken, all arrears of interest on, and principal of, the Bond shall have been paid and all other Events of Default, if any, which shall have occurred have been remedied, then the Bondholder may waive such default and annul such declaration. In case an Event of Default shall occur, subject to the provisions referred to in the preceding paragraph, the Bondholder shall have the right to protect the rights vested in such Bondholder by the Ordinance by such appropriate judicial proceeding as such Bondholder shall determine either by suit in equity or by action at law. 22