This page uses extracted PDF text. Text can misread numbers, dates or table columns. Check the PDF before quoting or interpreting it. Redacted areas remain redacted.
(30) day period but can be wholly cured and the Borrower has commenced or will promptly commence
with due diligence and dispatch the curing of such default and shall thereafter prosecute and complete the
same with due diligence and dispatch; (c) the Borrower shall (1) admit in writing its inability to pay its
debts generally as they become due; (2) have an order for relief entered in any case commenced by or
against it under the federal bankruptcy laws, as in effect as of or after the date of the Loan Agreement,
which is not dismissed within ninety (90) days; (3) voluntarily commence a proceeding under any other
federal or state bankruptcy, insolvency, reorganization or similar law, or have such a proceeding
commenced against it and either have an order of insolvency or reorganization entered against it or have
the proceeding remain undismissed and unstayed for ninety (90) days; (4) make an assignment for the
benefit of creditors; or (5) have a receiver or trustee appointed for it or for the whole or any substantial part
of its property which appointment is not vacated within a period of ninety (90) days; (d) any representation
or warranty made by the Borrower in the Loan Agreement or any statement in any report, certificate,
financial statement or other instrument furnished in connection with the Loan Agreement or with the
purchase of the Bonds shall at any time prove to have been false or misleading in any adverse material
respect when made or given; and (e) there shall occur an “Event of Default” as defined in the Indenture or
the Regulatory Agreement.
Notwithstanding the foregoing, if, by reason of Force Majeure, the Borrower is unable to perform
or observe any agreement, term or condition of the Loan Agreement which would give rise to an Event of
Default under clause (b) above, the Borrower shall not be deemed in default during the continuance of such
inability. However, the Borrower shall promptly give notice in writing to the Trustee and the Issuer of the
existence of an event of Force Majeure and shall use commercially reasonable efforts to remove the effects
thereof; provided that the settlement of strikes or other industrial disturbances shall be entirely within its
discretion.
The term “Force Majeure” shall mean, without limitation, the following:
(1) acts of God; strikes, lockouts or other industrial disturbances; acts of terrorism or
of public enemies; orders or restraints of any kind of the government of the United States of
America or of the Commonwealth or any of their departments, agencies, political subdivisions or
officials, or any civil or military authority; insurrections; civil disturbances; riots; epidemics;
landslides; lightning; earthquakes; fires; hurricanes; tornados; storms; droughts; floods; arrests;
restraint of government and people; explosions; breakage, malfunction or accident to facilities,
machinery, transmission pipes or canals; partial or entire failure of utilities; shortages of labor,
materials, supplies or transportation; or
(2) any cause, circumstance or event not reasonably within the control of the
Borrower.
The declaration of an Event of Default under clause (c) above, and the exercise of remedies upon
any such declaration, shall be subject to any applicable limitations of federal bankruptcy law affecting or
precluding that declaration or exercise during the pendency of or immediately following any bankruptcy,
liquidation or reorganization proceedings.
Remedies on Default
Whenever an Event of Default shall have happened and be subsisting, any one or more of the
following remedial steps may be taken:
(a) If acceleration of the principal amount of the Bonds has been declared pursuant to
the provisions described in “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE
D-13Jump to an indexed page (744 of 744)