HomeMy WebLinkAbout0071 The Company will not permit any mechanics' or other
liens to remain against the Project or the Mortgaged Property
for labor or materials furnished in connection with any additions,
modifications, improvements, repairs, renewals or replacements
so made by it; provided, that if the Company shall first
notify the Trustee of its intention so to do, the Company
may in good faith contest any mechanics' or other liens filed
or established against the Project or the Mortgaged Property
and in such event may permit the items so contested to remain
undischarged and unsatisfied during the period of such contest
and during the applicable appeal period or the conduct of
an appeal therefrom unless the Trustee shall notify the Company
that, in the opinion of its counsel, by non-payment of any
such items the Project or the Mortgaged Property or any part
thereof will be subject to immediate loss or forfeiture,
in which event the Company shall promptly pay and cause to
be satisfied and_discharged all such unpaid items. The Trustee
will cooperate fully with the Company in any such contest,
provided that the Company shall undertake to pay all costs
and expenses incurred by the Trustee and to indemnify the
Trustee and save it harmless against any risks, claims or
liabilities arising out of such contest.
Section 4.02. SUBSTITUTION OF EQUIPMENT. Neither
the Trustee nor the Issuer shall be under any obligation
to renew, repair or replace any~inadequate, obsolete, wornout,
unsuitable, undesirable or unnecessary equipment. In any
instance where the Company in its discretion determines that
any items of equipment included as part of the Project have
become inadequate, obsolete, wornout, unsuitable undesirable
or unnecessary, the Company may remove and dispose of such
items of equipment from the Project and sell, trade-in, exchange
or otherwise dispose of them (as a whole or in part) without
any responsibility or accountability to the Issuer or the
Trustee therefore, except as herein provided, but if the
; aggregate amount of such removals or dispositions during
{ the term of this Agreement exceeds $500,000 the Company may
` remove or dispose of such items only if the Company:
~ A Substitutes and installs an here in the Project
~ ( ) 1~
or on the Mortgaged Property other machinery or equipment
having equal or greater utility (but not necessarily having
the same value) as part of an air and water pollution control .
facility in conjunction with the operation of the ~dortgaged
Property as a modern industrial plant (provided such removal
and substitution shall not iMpair the utility of the Project
as an air and water pollution control facilit~ all of which
substituted machinery or equipment shall be free of all liens
and encumbrances and shall become a part of the ttortgaged
Property; or
(B) Pays into the Bond Fund, within thirty (30) days
after the end o.f any calendar quarter, (1) in the case of
the sale of any such equipment to anyone other than itself,
or in the case of the scrapping thereof, the proceeds from
~ such sale or the proceeds, if any; from such scrapping, as
~ the case may be, (2) in the case of the trade-in of such
equipment for other equipment not installed in the Project,
~ the amount of the credit received by it in such trade-in,
~ and (3) in the case of any disposition other than as provided
in clauses (B) (1) or (B) (2) an amount equal to the original
cost thereof less depreciation at rates calculated in accordance
with generally accepted accounting practices followed ~y
~ the Company; or
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