CreditEnhancementAgreement.doc

CreditEnhancementAgreement creditenhancementagreementbetweenaaa,(address)andbbbcorporationdatedasof,(m/d/y). tableofcontents articlei section1.1.definitions erpretationandconstruction section1.3.developmentprogram section1.4.pletion section1.5.citycosts section1.6.agreementcontrols articleii section2.1.creationofdevelopmentprogramfund section2.2.liens section2.3.depositsintodevelopmentprogramfund section2.4.moniesheldintrust articleiii section3.1.creditenhancementpayments section3.2.failuretomakepayment section3.3.mannerofpayments section3.4.obligationsunconditional section3.5.limitedobligation section3.6.calculationofretainedtaxincrement section3.7.revaluation articleiv section4.1.pledgeofprojectcostaccount section4.2.perfectionofinterest section4.3.furtherinstruments section4.4.nodispositionofdevelopersubaccount section4.5.accesstobooksandrecords articlev section5.1.eventsofdefault section5.2.remediesondefault section5.3.remediescumulative section5.4.agreementtopayattorneysfeesandexpenses section5.5.taxlaws articlevi section6.1.effectivedateandterm section6.2.cancellationandexpirationofterm articlevii section7.1.consenttopledgeand/orassignment section7.2.pledge,assignmentorsecurityinterest section7.3.assignment articleviii section8.1.successors section8.2.partiesininterest section8.3.severability section8.4.nopersonalliabilityofofficialsofthecity section8.5.counterparts erninglaw section8.7.notices section8.8.amendments agreement section8.10.benefitofassigneeorpledges egration section8.12.disputes section8.13.arbitration thiscreditenhancementagreementdatedasof,(m/d/y),betweentheaaa,(thecity),amunicipalbodycorporateandpoliticandapoliticalsubdivisionofthestateof,andbbbcorporation(thedeveloper),a(address)corporationwithaplaceofbusinessinbath,(address). witnesseththat whereas,thecitydesignatedthebbbmunicipaldevelopmentandtaxincrementfinancingdistrict1andthebbbmunicipaldevelopmentandtaxincrementfinancingdistrict2(thedistricts)pursuanttochapter207oftitle30aofthe(address)revisedstatutes,asamended,byactionofthecitycouncilatacitycouncilmeetingheldon,(m/d/y)(thevote)andpursuanttothesamevoteadoptedadevelopmentprogramandfinancialplanforthedistricts(thedevelopmentprogram);and ?1?2?3?4?5?6?7?8?9?10?11?12?13?14?15?16?17?18?19? whereas,the(address)departmentofeconomicandmunitydevelopmenthasreviewedandacceptedthedistrictandthedevelopmentprogrameffective,(m/d/y);and whereas,thedevelopmentprogramcontemplatestheexecutionanddeliveryofacreditenhancementagreementbetweenthecityandthedeveloper;and whereas,thecityandthedeveloperdesireandintendthatthiscreditenhancementagreementbeandconstitutethecreditenhancementagreementcontemplatedbyanddescribedinthedevelopmentprogram; now,therefore,inconsiderationoftheforegoingandinconsiderationofthemutualpromisesandcovenantssetforthherein,thepartiesherebyagreeasfollows: articlei definitions:interpretations section1.1.definitions.thetermsdefinedinthisarticleishall,forallpurposesofthisagreement,havethemeaningshereinspecified,unlessthecontextclearlyrequiresotherwise: agreementshallmeanthiscreditenhancementagreementbetweenthecityandthedeveloper. capturedassessedvalueshallmeanthevaluationamountbywhichthethencurrentassessedvalueofthedistrictsexceedstheoriginalassessedvalueofthedistricts. citymeanstheaaa,(address),amunicipalitydulyorganizedandexistingunderthelawsofthestateof(address). citysharemeans(a)alloftheretainedtaxincrementrevenuesotherthanthedevelopersharethereofplus(b)allinterestandearningsonalloftheretainedtaxincrementrevenues,exceptasprovidedinsection3.1(e)hereof. developermeansbbbcorporation,a(address)corporationwithaplaceofbusinessinbath,(address). developmentprogrammeansthedevelopmentprogramforthedistrictasadoptedbythebathcitycouncilatameetingheldon,(m/d/y). developmentprogramfundmeansthedevelopmentprogramfunddescribedinthefinancialplansectionofthedevelopmentprogramandestablishedandmaintainedpursuanttoarticleiihereof. developersharemeans(a)100%oftherealpropertyincrementwithrespecttothelandlevelfacilityand50%oftherealpropertyincrementwithrespecttotheexistingfacilityand50%ofthepersonalpropertyincrementwithrespecttothelandlevelfacilityand50%ofthepersonalpropertyincrementwithrespecttotheexistingfacility,foreachofthetwentyfiveyearsofthetermofthisagreement(mencingwiththeyeartaxyear)oftheretainedtaxincrementrevenues,provided,however,thatsuchpercentagesshallbereducedtothefollowingamountsatsuchtimethattheaggregateamountofpaymentsbythecitytothedeveloperduringthetermofthisagreementandpursuanttothisagreementequal$;100%oftherealpropertyincrementwithrespecttothelandlevelfacilitywithrespecttoassessedvalueequaltotheassessedvalueoflandlevelfacility(district1)realpropertyasof,(m/d/y);35%oftherealpropertyincrementwithrespecttothelandlevelfacilitywithrespecttoassessedvalueofrealpropertyinexcessoftheassessedvalueoflandlevelfacility(district1)realpropertyasof,(m/d/y);35%ofthepersonalpropertyincrementwithrespecttothelandlevelfacility;35%oftherealpropertyincrementwithrespecttotheexistingfacility;and35%ofthepersonalpropertyincrementwithrespecttotheexistingfacility. intheeventthatthetaxshiftformulasarechangedandasaresultthecitystaxshiftamountisdecreasedbyreasonofinclusioninthecitysvaluationforpurposesofthetaxshiftformulasofanyportionofthecapturedassessedvaluewithrespecttowhichthedevelopersshareisdeterminedhereunder,then,mencingwiththelaterof(a)thefiscalyearor(b)thefiscalyearinwhichthetaxshiftformulasarechanged,thedevelopershareshallbereducedbyanamountequalto50%ofthedifference,calculatedsolelywithrespecttothedevelopershareoftheretainedtaxincrement,between(a)thetaxshiftasdeterminedusingthemethodsetforthinthecurrenttaxshiftformulasand(b)thetaxshiftasproperlydeterminedusingthetheneffectivestatelawsrelatingtostateaidtoeducation,revenuesharingandcountytax;anyreductionunderthisparagraphshallbecalculatedannuallyandappliedtoreducethepaymentsofthedevelopershareonthenextscheduledpaymentdatehereinfollowingsuchcalculation. achangeinthetaxshiftresultingotherthanfromincludingcapturedassessedvalueinthecitysvaluationshallnotresultinareductionofthedevelopersshare. anythinginthisagreementtothecontrarynotwithstanding,forpurposesofcalculatingthedevelopersshare,theplatformforthelandleveltransfersystem(theconcretepad,filledlandandpilingssupportingthestructuresthereon)shallbeincludedwithintherealpropertyincrementofthelandlevelfacility. district(s)meansthebbbcorporationmunicipaldevelopmentandtaxincrementfinancingdistrict1(district1)andthebbbmunicipaldevelopmentandtaxincrementfinancingdistrict2(district2)designatedbythecitypursuanttochapter207oftitle30aofthe(address)revisedstatutes,asamended,byvoteatcitycouncilmeetingheldon,(m,d,y),whichdistrictsshallincludetheexistingfacilityandthelandlevelfacility. effectivedatemeans,(m/d/y). existingfacilitymeansthepropertyconsistingoftheexistingshipbuildingfacilityofthedeveloper,locatedontheparcelshownontax,(m,d)asparcel142withindistrict2,includingallland,buildings,andallpersonalpropertylocatedonsuchparcelasof,(m,d)eachyearsubjecttocityadvaloremtaxestogetherwithallimprovementsoradditionstheretowithintheexistinggeographicboundariesofsuchfacility,allascurrentlydepictedonexhibitahereto. financialplanmeansthefinancialplandescribedinthefinancialplansectionofthedevelopmentprogram. fiscalyearmeans,(m/d)to,(m/d)ofeachyearorsuchotherfiscalyearasthecitymayfromtimetotimeestablish;forpurposesofthisagreement,thefiscalyearmeansthefiscalyearmencing,(m/d/y)andending,(m/d/y)andthefiscalyear$meansthefiscalyearmencing,(m/d/y)andending,(m/d/y). landlevelfacilitymeansthelandlevelfacilitytobeconstructedindistrict1bythedeveloperadjacenttotheexistingfacility,togetherwithallland,buildings,personalpropertylocatedonsuchadjacentlandasofapril1ofeachyearsubjecttocityadvaloremtaxestogetherwithallimprovementsoradditionstheretoasdepictedonexhibitbhereto. originalassessedvaluemeans$,theassessedvalueofthedistrictsasof,(m/d/y)asthesamemaybeadjustedfromtimetotimeinaccordancewithsection3.7hereof. personalpropertyincrementmeansthatportionofthetaxincrementattributabletoincreasesinpersonalpropertyvaluationswithrespecttopersonalpropertylocatedinthedistricts. projectmeansthedesign,planning,development,acquisition,constructionandoperationofthelandlevelfacilityandotherbbbcorporationimprovementswithinthedistrictsasdescribedinthedevelopmentprogram. projectcostaccountmeanstheprojectcostaccountdescribedinthefinancialplansectionofthedevelopmentprogramconsistingofthecitysubaccountandthedevelopersubaccountandestablishedandmaintainedpursuanttoarticleiihereofandtoprovisionsof30am.r.s.a.section5254(3)(a)(2). projectcostsmeansprojectcostsasdefinedin30am.r.s.a. section5152(8). propertymeansallrealpropertyandallpersonalpropertynoworhereafterlocatedinthedistricts. propertytaxesmeansanyandalladvalorempropertytaxeslevied,chargedorassessedagainstrealorpersonalpropertyinthedistrictsbythecity,oronitsbehalf. realpropertyincrementmeansthatportionofthetaxincrementattributabletoincreasesinrealestatevaluationswithrespecttorealestatelocatedinthedistricts. retainedtaxincrementrevenuesmeansthatportionofthetaxincrementtoberetainedbythecityanddepositedintothedevelopmentprogramfundpursuanttothetermsofthedevelopmentprogramandthisagreement. taxincrementmeanstherealandpersonalpropertytaxesexclusiveofanystate,countryorspecialdistricttax,assessedbythecityonthecapturedassessedvalueofpropertywithinthedistricts,whichtaxincrementshallconsistoftherealpropertyincrementandthepersonalpropertyincrement. taxpaymentdatemeansthedate(s)onwhichpropertytaxesleviedbythecityaredueandpayablefromownersofpropertylocatedwithinthecity. taxshiftmeansthedecreaseincountytaxpayablebythecityandtheincreasesinstateaidforeducationandrevenuesharinginallthreecasesresultingfromtheexclusionofcapturedassessedvaluefromthecitysvaluationincalculatingsuchamountsofcountytax,stateaidtoeducationandrevenuesharingunderthecurrenttaxshiftformulas. taxshiftformulasmeantheformulascurrentlyutilizedbythestateof(address)incalculating(a)thecountytaxpayableinaccordancewith30am.r.s.a.section706and36m.r.s.a.sections305(1),381;(b)themunicipalrevenuesharingdistributionofthelocalgovernmentfundinaccordancewith30am.r.s.a.section5681;and(c)stateaidtoeducation,includingaidfortotaloperatingcosts,totalprogramcostallocation(takingintoaccountthemaximumlocalshareorcircuitbreaker)andtotaldebtservicecostallocation(takingintoaccountthemaximumlocalshareorcircuitbreaker),allasputedinaccordancewith(address)departmentofeducationformed261. hisagreement,unlessthecontextotherwiserequires: (a)thetermshereby,hereof,hereto,herein,hereunderandanysimilarterms,asusedinthisagreement,refertothisagreement,andthetermhereaftermeansafter,andthetermheretoforemeansbefore,thedateofdeliveryofthisagreement. (b)wordsimportingaparticulargendermeanandincludecorrelativewordsofeveryothergenderandwordsimportingthesingularnumbermeanandincludethepluralnumberandviceversa. (c)wordsimportingpersonsmeanandincludefirms,associations,partnerships(includinglimitedpartnerships),trusts,corporationsandotherlegalentities,includingpublicorgovernmentalbodies,aswellasanynaturalpersons. (d)anyheadingsprecedingthetextsoftheseveralarticlesandsectionsofthisagreement,andanytableofcontentsormarginalnotesappendedtocopieshereof,shallbesolelyforconvenienceofreferenceandshallnotconstituteapartofthisagreement,norshalltheyaffectitsmeaning,constructionoreffect. (e)exceptasotherwiseprovidedherein,allapprovals,consentsandacceptancesrequiredtobegivenormadepursuanttothisagreementbyanysignatoryheretoshallnotbewithheldunreasonably,provided,thatthisparagraphshallnotapplytoapprovals,consentsandacceptancesunderapplicablelaws,ordinancesandcodes,including,withoutlimitation,landuseordinances. (f)allnoticestobegivenhereundershallbegiveninwritingand,unlessacertainnumberofdaysisspecified,withinareasonabletime. (g)ifanyclause,provisionorsectionofthisagreementshallberuledinvalidbyanycourtofpetentjurisdiction,theinvalidityofsuchclause,provisionorsectionshallnotaffectanyoftheremainingprovisionshereofexceptasotherwiseprovidedinsection3.4hereof. section1.3.developmentprogram.neitherthisagreementnorthedevelopmentprogramobligatethedevelopertoconstructthelandlevelfacilityortomakeanyotherimprovementstoitsfacility. section1.4.pletion.thedevelopershallhavepletedasmuchofthedevelopmentprogramaswillqualifyforfinancialassistancehereunderwithinfive(5)yearsaftertheeffectivedate.ifnoneofthedevelopmentprogramispletedwithinfive(5)yearsaftertheeffectivedate,thenthisagreement(exceptsection1.5pertainingtocosts)andthedistrictshallterminateattheendoffive(5)yearsaftertheeffectivedate.notwithstandinganyotherprovisionhereof,nopaymentsshallbemadeorbepayablebythecitytothedeveloperunderthisagreementunlesssuchpaymentsareusedtopayorreimbursethedeveloperforprojectcostsincurredwithinfive(5)yearsoftheeffectivedatepursuanttoproperdocumentationthereofprovidedbythedeveloperpursuanttosection3.1(d)hereof. section1.5.citycosts.thedevelopershallpayorreimbursethecityforallreasonablefees,expensesandotherchargesofthecityanditsconsultants,includingthecitysattorneys,accountantsandovertimeofthecitysappraiser,taxassessorandothercitystaff,inconnectionwiththereview,negotiation,approval,execution,administration,enforcementandcarryingoutofthisagreementandthereview,negotiation,approval,administration,enforcementandcarryingoutofthedevelopmentprogram.notwithstandinganyoftheprovisionofthisagreement,thissectionshallsurviveanyterminationofthisagreement. heeventofanyinconsistencybetweenthisagreementandthedevelopmentprogram,thetermsandprovisionsofthisagreementshalltakeprecedence,totheextentpermittedbylaw,overtheinconsistentprovisionsofthedevelopmentprogram. articleii projectcostaccountandfundingrequirements section2.1.creationofdevelopmentprogramfund.thecityherebyconfirmsthecreationandestablishmentofasegregatedfundinthenameofthecitydesignatedasthebbbcorporationmunicipaldevelopmenttaxincrementfinancingdistrictprogramfund(thedevelopmentprogramfund)pursuantto,andinaccordancewiththetermsandconditionsof,thedevelopmentprogram.thedevelopmentprogramfundshallconsistoftheprojectcostaccount.theprojectcostaccountshallconsistofthecitysubaccountandthedevelopersubaccount. section2.2.liens.thecityshallnotcreateanyliens,encumbrancesorotherinterestsofanynaturewhatsoever,norshallithypothecatethedevelopersubaccountoftheprojectcostaccountofthedevelopmentprogramfundoranyfundsthereinorrevenuesresultingfrominvestmentoffundstherein,otherthantheinterestofthedevelopergrantedunderthisagreementinandtotheamountsondepositinthedevelopersubaccount,provided,however,nothinghereinshallprohibitcreationofrealandpersonalpropertytaxliensonthedeveloperspropertyinaccordancewith,andentitledtothepriorityprovidedunder,(address)law. section2.3.depositsintodevelopmentprogramfund.thecityshalldepositintothedevelopersubaccountoftheprojectcostaccountwithinfifteen(15)daysafterthecitysreceiptthereof,anamountequaltothedevelopershareoftheretainedtaxincrementrevenuesfortheperiodtowhichthepaymentrelates.allamountsdepositedinortransferredtothedevelopersubaccountoftheprojectcostaccountshallbepaidtothedeveloperinaccordancewitharticleiiiofthisagreement.allinterestandearningsontheretainedtaxincrementrevenuespriortoandafterdepositthereofintotheprojectcostaccountshallbethesolepropertyofthecityandshallbefreeandclearofanyinterestofthedeveloperunderthisagreement. section2.4.moniesheldintrust.exceptasotherwisepermittedinthisagreement,allmoniesrequiredtobedepositedwithorpaidintothedevelopersubaccountoftheprojectcostaccounttofundpaymentstodeveloperundertheprovisionshereofandtheprovisionsofthedevelopmentprogram,shallbeheldbythecity,intrust,forthebenefitofthedeveloperinaccordancewiththeprovisionsofthisagreement.allfundsinthecitysubaccountoftheprojectcostaccountshallbethesoleandexclusivepropertyofthecityandshallnotbesubjectinanywaytothetermsorprovisionsofthisagreement. articleiii paymentobligations section3.1.creditenhancementpayments. (a)thecityshallretainanddeposit,withinfifteen(15)daysfollowingeachtaxpaymentdateorthedatepaymentisactuallyreceivedbythecitywithrespecttopropertyinthedistricts,whicheverislater,inthedevelopersubaccountoftheprojectcostaccount,thedevelopershareofthetaxincrementineachyearmencingwiththecitysfiscalyearandcontinuingthereafterthroughandincludingthefiscalyear.notwithstandingtheforegoing,ifatanytimetheassessedvalueoftheexistingfacilityislessthantheoriginalassessedvalue,thentheamountpayablewithrespecttothelandlevelfacilityshallbereducedbyanamountequaltothedifferencebetweenthepropertytaxesthatwouldbethenpayableonanamountequaltooriginalassessedvalueandthepropertytaxespayableonthethenassessedvalueoftheexistingfacility. (b)subjecttotheprovisionsofthisagreement,thecityagreestopaydeveloper,withinfifteen(15)daysfollowingeachtaxpaymentdateorthedatepaymentisactuallyreceivedbythecity,whicheverislater,thedevelopershareoftheretainedtaxincrementrevenuesresultingfromthepropertytaxpaymentsdueonsuchtaxpaymentdateandactuallyreceivedbythecitywithrespecttopropertyinthedistricts. (c)if,withrespecttoanytaxpaymentdate,developerfailstopayanyportionofthepropertytaxesassessedbythecity,becaus