10-01-03 La Porte Redevelopment Authority Meeting minutes

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8/20/2003 a usurious rate, in which case interest shall be calculated on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed (including the first day but excluding the last day). In no case shall the interest rate exceed one percent per month. (G) The La Porte Authority's obligation to pay the Developer Advances or reimburse the Developer for Project Costs is limited to any Pledged Available Tax Increment. The rights of Developer in and to the Pledged Available Tax Increment granted herein are subject only to (i) the rights of any holders of bonds, notes or other obligations that have been heretofore or are hereafter issued by the City or any other participating taxing unit that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City or any other participating taxing unit, (ii) the rights of any of the holders of bonds and notes that are hereafter issued or incurred by the La Porte Authority and which are secured by a pledge of the Tax Increment Revenue Fund the proceeds of which are used to fully pay the Project Costs, including all Developer Advances and accrued interest thereon as set forth in this Agreement, and (iii) the rights of any of the holders of notes that are hereafter issued or incurred by the La Porte Authority, which are secured by a pledge, all or a part, of the Tax Increment Revenue Fund, the proceeds of which are used solely to fund the annual operating and administration budget of the La Porte Authority approved by the La Porte Board and the City Council of the City. Except in the event that sufficient tax increment increase does not occur within the term of the Zone or within the Project Site to generate sufficient revenue to repay the Developer Advance(s), it shall be the obligation of the La Porte Authority to repay the Developer Advances and accrued interest thereon as set forth in this Agreement from the Pledged Available Tax Increment until such time as the Developer Advances and accrued interest thereof incurred pursuant to this Agreement, have been fully repaid or provision for payment thereon to Developer shall have been made in accordance with their terms. The Developer Advances constitute a special obligation of the La Porte Authority payable solely from the Pledged Available Tax Increment as and to the extent provided in this Agreement. The Developer Advances do not give rise to a charge against the general credit or taxing powers of the La Porte Authority, the La Porte Zone, the City, the County or any other Taxing Unit and is not payable except as provided in this Agreement. Developer, its successors and assigns, shall not have the right to demand payment thereof out of any funds of the La Porte Authority other than the Pledged Available Tax Increment or sources described in Section 6.1 (E). (H) The La Porte Authority will evaluate and consider bond issues to reimburse the Developer upon the following circumstances: 1) Projected incremental revenue generates 1.25 times coverage for the bonds over projected annual debt service; 2) Projected incremental revenue will be calculated by multiplying estimated or certified incremental value from the appraisal district by the participant( s) tax rate( s) divided by 100 times one minus a reasonable historical tax collection factor times one minus the City set aside percentage; 3) A reserve fund equal to maXImum annual debt service must be funded from the bond proceeds; 11