PAYMENTS AND SECURITY. Section 3.1. Upon issuance of the Certificates, the Area School shall provide the Employer with a schedule showing the payments of the principal and interest on the Certificates, provided that the failure to provide such schedule to the Employer shall in no way diminish the liability of the Employer for the payments provided herein to be made by the Employer. In the event that the new jobs credit from withholding with respect to persons employed at the Project and the incremental property taxes produced by the expansion by the Employer as a part of the Project are insufficient for the payment of each payment of principal and interest on the Certificates on the date when due, the Employer shall make, or cause to be made, payments to the Area School in the amount Section 3.2. The Employer shall make, or cause to be made, all payments required hereunder directly to the Area School at its principal office for application to the payment of the corresponding installments of principal, premium, if any, and interest on the Certificates. Section 3.3. The obligations of the Employer to make payments shall be absolute and unconditional upon issuance of the Certificates, and the Employer shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without limitation, any defense, set-off, recoupment or counterclaim which the Employer may have or assert against the Area School or any other person. Section 3.4. To secure the payment by the Employer of the payments required hereunder and compliance by the Employer with all the terms, provisions and conditions hereof, the Employer agrees that the new jobs credit from withholding and the incremental property taxes shall be pledged for payment of the principal, premium, if any, and interest on the Certificates as provided by the resolution. The Employer further agrees that the payments required to be made by it hereunder are a lien upon the Employer's business property in the State of Iowa, including specifically the property described on Exhibit “B” attached hereto, until paid and have equal precedence with ordinary taxes and shall not be divested by a judicial sale. Property subject to this lien may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties and consequences as for the nonpayment of ordinary taxes. The purchaser at any such tax sale shall obtain the property subject to the remaining payments.
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PAYMENTS AND SECURITY. Section 3.1. Upon issuance 3.1 Lessee shall pay Rent to Lessor and provide Lessor’s Security in respect of each Engine when and as specified in the CertificatesLease relating to such Engine.
3.2 (a) Regarding the Deposit specified in any Lease:-
(i) it shall be held by Lessor, the Area School shall provide the Employer commingled with a schedule showing the payments of the principal and interest on the Certificatesits own funds, provided that the failure to provide such schedule to the Employer shall in no way diminish the liability of the Employer as security for the payments provided herein full, punctual performance of all of Lessee’s obligations under the Lessee Documents. Lessor may but shall not be obliged to be made by apply the Employer. In the event that the new jobs credit from withholding with respect to persons employed at the Project and the incremental property taxes produced by the expansion by the Employer as a Deposit in whole or in part of the Project are insufficient for the payment of each payment any amounts owing from time to time by Lessee or to perform any of principal and Lessee’s obligations or otherwise remedy any Event of Default. Upon any depletion of the Deposit, Lessee shall, promptly following receipt of a written notice from Lessor that all or any portion of the Deposit has been depleted, restore the Deposit to its full cash amount;
(ii) Lessee shall not attempt to subject the Deposit to any Encumbrance or assign any interest on the Certificates on the date when duetherein to any other party. Subject to Clause 12, the Employer shall make, or cause to Deposit may be made, payments assigned by Lessor in whole but not in part to the Area School Lender or any assignee or transferee of Lessor provided, however, that any such Lender, assignee or transferee shall have agreed in writing for the amountbenefit of Lessee to hold, apply and return such Deposit solely for the purposes and as provided in this Agreement or the relevant Lease;
Section 3.2. The Employer (iii) upon the occurrence of an Event of Default, the Deposit shall makeautomatically and without further act be applied against any amount due and payable to Lessor, or cause unless Lessor thereafter elects otherwise by notice to be made, all payments required hereunder directly to the Area School at its principal office for application to the payment Lessee;
(iv) upon Lessor’s acceptance of but no later than 10 days following Redelivery of the corresponding installments Engine in conformity herewith and with the applicable Lease and the full and complete performance of principalall of Lessee’s accrued obligations in respect of such Engine at that time, premium, if any, and interest on the Certificates.
Section 3.3. The obligations of relevant Deposit or the Employer to make payments remaining part thereof shall be absolute and unconditional upon issuance repaid to Lessee; and
(v) nothing in Clause 3.2(a) shall create a relationship of the Certificates, and the Employer shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without limitation, any defense, set-off, recoupment or counterclaim which the Employer may have or assert against the Area School trust or any other personduty of a fiduciary nature between Lessor and Lessee.
Section 3.4. To secure the payment by the Employer of the payments required hereunder and compliance by the Employer with all the terms, provisions and conditions hereof, the Employer agrees that the new jobs credit from withholding and the incremental property taxes shall be pledged for payment of the principal, premium, if any, and interest on the Certificates as provided by the resolution. The Employer further agrees that the payments required to be made by it hereunder are a lien upon the Employer's business property in the State of Iowa, including specifically the property described on Exhibit “B” attached hereto, until paid and have equal precedence with ordinary taxes and shall not be divested by a judicial sale. Property subject to this lien may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties and consequences as for the nonpayment of ordinary taxes. The purchaser at any such tax sale shall obtain the property subject to the remaining payments.
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