Laserfiche WebLink
~Q~ <br />LEASE TRANSACTIONS SUBJECT TO ANNUAL APPROPRIATION <br />GENERAL DOCUMENT PROVISIONS <br />Lease revenue securitied subject to annual appropriation must include the following document <br />provisions: <br />A. REPRESENTATIONS <br />l. The Lease Agreement or a separate letter from the Obligor shall include a representation <br />as to the essentiality of the Leased Facility. <br />B TRANSACTION STRUCTURE <br />1. Rental payments sha11 be scheduled 15 days in advance of Certificate debt service <br />payment dates. <br />2. A Completion/Acceptance certificate shall be submitted to MBIA upon project <br />completion. <br />3. In lease-sublease transactions, the term of the sublease shall match that of the lease. <br />4. Any sublease entered into subsequent to closing shall be subject to MBIA consent. <br />5. No variable rate debt -- direct or derivative is permitted. <br />6. No additional parity obligations are permitted without MBIA consent except refundings <br />which result in debt service savings and in Master Leases. <br />7. Unless expressly agreed to by MBIA in its sole discretion, no substitution or release of <br />the Leased Property sha11 be permitted. At a minimum, MBIA will require the following: <br />a. An MAI fair market appraisal demonstrating that the value of the substituted <br />property is at least equal to that released; <br />b. A certificate of useful life demonstrating that the useful life of the substituted <br />property meets or exceeds the remaining term of the bonds; <br />c. Certification that the essentiality of the substituted property is comparable to that <br />of the existing project; <br />d. Bond counsel must supply an acceptable tax opinion; <br />e. No prior liens on substituted property; <br />f. Title insurance for any substituted property and prior to release of any leased <br />property, evidence that the existing title insurance policy is not affected. <br />8. The cure period for covenant defaults shall be thirty days. <br />9. Remedies in an Event of Default must include the ability to sell or sublet the Facility. <br />C. INSURANCE PROVISIONS <br />