Resolution No. 4484 - Laserfiche WebLink

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Section 9. Default and Remedies. 9. 1. The occurrence of anyone or more of the following shall constitute an event of default under this Resolution: 9.1.1. Failure by the City to pay Debt Service on Bonds when due~ or, 9.1.2. Failure by the City to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Resolution or the Bonds for a period of 60 days after written notice to the City by the Owners of not less than twenty-five percent of the principal amount of outstanding Bonds specifying such failure and requesting that it be remedied~ provided, however, that if the failure stated in the notice cannot be corrected within the sixty day period, it shall not constitute an event of default if corrective action is instituted by the City within the sixty day period and diligently pursued until the failure is corrected. 9.2. Upon the occurrence of an event of default, the Bondowners may exercise any remedy available at law or in equity; however, no Bond may be accelerated unless all outstanding Bonds are declared immediately due and payable, and all outstanding Bonds may be declared immediately due and payable only upon demand of the Owners of not less than twenty-five percent of the principal amount of the Bonds which are then outstanding. 9.3. No remedy herein conferred upon or reserved to Bondowners is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to every and any other remedy available under this Resolution or now or hereafter existing at law or in equity. No delay or omission in the exercise of any right or power occurring upon any default shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. To entitle Bondowners to exercise any remedy under this Resolution, it shall not be necessary to give any other notice than such notice as may be required in this Section 9.1.2. or by law. 9.4. Any moneys collected by or on behalf of Bondowners after an event of default has occurred shall be deposited in the General Account and applied as provided in this Resolution. Section 10. Defeasance. The lien of any Bonds upon the Assessments; the Available Sewer Revenues and any amounts in the Fund may be defeased, and those Bonds shall be deemed paid, if the City places in irrevocable escrow noncallable, direct obligations of, or obligations guaranteed by, the United States which are calculated to be sufficient, without reinvestment, to pay principal, interest and any premium on those Bonds as they become due, either at maturity or on prior redemption. Section 11. Bonds. The City is hereby authorized to issue, sell and deliver its Special Assessment Bonds, 1996 Series N and a DEQ Obligation. The total principal amount of the Bonds shall not Page 6 - Resolution J :\HWR \CITIES\EUGENE\SAB96\SAB96RES.DOC