AG 1999 07 12 - Laserfiche WebLink

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ARTICLE VIII BOARD OF EDUCATION'S ASSUMPTION OF COUNTY'S OBLIGATIONS 8.1 Assumption of Obligations. The Board of Education hereby assumes all the County's obligations under Financial Contract Sections regarding care and use, utilities, compliance with requirements, security, use and operation, payment of taxes and other governmental charges, property damage insurance, prevention of liens, and regarding notice of damage, repair or replacement from Net Proceeds, and disposition of Equipment; provided, however, that the County hereby undertakes to make the Net Proceeds contemplated by the Financial Contract available to the Board of Education for use in carrying out this obligation, and further provided that the County retains its rights to direct the use of Net Proceeds to prepayment of the County's obligations under the Financial Contract. It is expressly understood that the Board of Education shall not indemnify the County or any party to the Financial Contract 'for third party claims asserted against any party to the Financial Contract. 8.2 Transfer of Rights. In order to allow the Board of Education to carry out its obligations under the Financial Contract, the County hereby transfers its rights under the Financial Contract regarding remodeling of the Facilities, improving the Facilities and installing equipment to the Board of Education. Nothing in this Section, however, shall be construed as in any way delegating to the Board of Education any of the County's rights or responsibilities to make decisions regarding the Board of Education's capital and operating budgets or otherwise covenanting that such funds for such purposes will be appropriated or available. 8.3 Board of Education's General Covenant. The Board of Education further undertakes not to take or omit to take any action the taking or omission of which would cause the County to be in default, technical or otherwise, under the Financial Contract. In particular, the Board of Education covenants not to make any use of the Lease Property that would cause the County" obligations to make Installment Payments under the Financial Contract to be "private activity bonds" within the meaning of the Code. If the Board of Education shall take or omit to take any such action, then the Board of Education shall proceed with all due diligence to take such actions as may be necessary to cure such default. 8.4 County's Cooperation. The County shall cooperate fully with the Board of Education in filing any proof of loss or taking any other action under this Lease. In no event shall the County or the Board of Education voluntarily settle or consent to the settlement of, any proceeding arising out of any insurance claim with respect to the Facilities without the other's written consent.