HomeMy WebLinkAboutOrdinance #4341 - Bond and Loan Agreements and Bonds in Connection with the Outstanding Health Care Facilities Revenue Bond, Series 2015BCERTIFICATE
THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY
OF CANTON, ILLINOIS, AND THAT THE CITY COUNCIL AT A REGULARLY
CONSTITUTED MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON THE
10 DAY OF MAY, 2023 ADOPTED ORDINANCE NO. 4341 A TRUE AND CORRECT COPY
OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 16TH DAY OF MAY, 2023.
(SEAL)
REA S_MITH_-WALTERS
ITY CLERK
ORDINANCE NO. 4341
AN ORDINANCE PROVIDING FOR THE APPROVAL BY THE CITY OF
CANTON, FULTON COUNTY, ILLINOIS OF THE EXECUTION AND
DELIVERY OF AMENDMENTS TO BOND AND LOAN AGREEMENTS AND
BONDS IN CONNECTION WITH THE OUTSTANDING HEALTH CARE
FACILITIES REVENUE BOND, SERIES 2015B (GRAHAM HOSPITAL
ASSOCIATION PROJECT) AND HEALTH CARE FACILITIES REVENUE
BOND, SERIES 2020 (GRAHAM HOSPITAL ASSOCIATION PROJECT); AND
RELATED MATTERS.
WHEREAS, the City of Canton, Fulton County, Illinois (the "City"), a municipality duly
organized and validly existing under the Constitution and laws of the State of Illinois, and by virtue
of the Constitution and laws of the State of Illinois, including The Industrial Project Revenue Bond
Act, 65 ILCS 5/11-74-1 et seq., as supplemented and amended, including by the Illinois Bond
Replacement Act, the Registered Bond Act, the Bond Authorization Act and the Local Government
Debt Reform Act (collectively, the "Act"), is authorized and empowered, among other things: (a) to
provide funds for the acquisition of privately owned industrial facilities, including health care
facilities, (b) to issue its revenue bonds for the purposes set forth herein, (c) to secure such revenue
bonds by a pledge and assignment of revenues and other available funds and other documents, as
provided for herein, and (d) to enact this Ordinance and execute the Amendments, as hereinafter
identified, and all other documents to be executed by it, upon the terms and conditions provided
therein; and
WHEREAS, the City, on October 20, 2015, adopted a resolution authorizing the issuance and
delivery of its $26,755,000 original principal amount Health Care Facilities Revenue Bond, Series
2015B (Graham Hospital Association Project) (the "2015B Bond"); and
WHEREAS, the 2015B Bond was issued pursuant to a Bond and Loan Agreement, dated as
of November 1, 2015, among the City, Graham Hospital Association, an Illinois not-for-profit
corporation (the "Borrower"), and BMO Harris Bank N.A., a national banking association (the
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"Original 2015B Purchaser"), as amended by a First Amendment to Bond and Loan Agreement and
Related Documents, dated September 26, 2019 (together, the "2015B Bond and Loan Agreement"),
among the City, the Borrower, and BMO Harris Investment Company LLC, a Nevada limited
liability company, as assignee of the Original 2015B Purchaser (the "Purchaser"); and
WHEREAS, the City, on June 16, 2020, adopted a resolution authorizing the issuance and
delivery of its $17,000,000 original principal amount Health Care Facilities Revenue Bond, Series
2020 (Graham Hospital Association Project) (the "2020 Bond" and together with the 2015B Bond,
the "Bonds"); and
WHEREAS, the 2020 Bond was issued pursuant to a Bond and Loan Agreement, dated as of
June 1, 2020 (the "2020 Bond and Loan Agreement" and together with the 2015B Bond and Loan
Agreement, the "Bond and Loan Agreements"), among the City, the Borrower, and the Purchaser;
and
WHEREAS, the Borrower has requested the City and the Purchaser amend certain provisions
of the Bond and Loan Agreements, in order to provide for certain amendments relating to the interest
rate borne by the Bonds and make certain other changes; and
WHEREAS, it is necessary and proper for the interests and convenience of the City to
authorize such amendments to the Bond and Loan Agreements; and
WHEREAS, the City has caused to be prepared and presented to this meeting drafts of the
amendments to Bond and Loan Agreements and the amended Bonds, each to be dated as of June 1,
2023 (the "Amendments"), among the City, the Borrower, and the Purchaser, which the City
proposes to enter into and which amend the Bond and Loan Agreements and the Bonds; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CANTON, FULTON COUNTY, ILLINOIS, AS FOLLOWS:
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4862-0224-2657.2
Section 1. That the form, terms, and provisions of the proposed Amendments be, and the
same hereby are, in all respects approved, and that the Mayor and the City Clerk be, and they are
hereby authorized, empowered, and directed to execute and deliver such instruments in the name and
on behalf of the City, and to cause the Amendments to be delivered to the Borrower and the
Purchaser. The Amendments are to be in substantially the forms attached to this Ordinance and are
hereby approved, and the Mayor and City Clerk are hereby authorized to make changes to the
Amendments as are consistent with this Ordinance. The execution of any and all documents related
to the Amendments, and the Bonds by officials of the City shall constitute conclusive evidence of the
City's approval of any and all changes or revisions therein from the form of the Amendments hereby
approved; and that from and after the execution and delivery of such instruments, the officials,
agents and employees of the City are hereby authorized, empowered and directed to do all such acts
and things and to execute all such documents as may be necessary to carry out and comply with the
provisions of such instruments as executed. The Amendments shall constitute and are hereby made
a part of this Ordinance and copies of such document shall be placed in the official records of the
City, and shall be made available for public inspection.
Section 2. That from and after the execution and delivery of the Amendments, the proper
officials, agents, and employees of the City are hereby authorized, empowered, and directed to do all
such acts and things and to execute all such documents as may be necessary to carry out and comply
with the provisions of said documents as executed and to further the purposes and intent of this
Ordinance, including the preamble hereto. The Mayor and the City Clerk be, and they are each
hereby, further authorized and directed for and on behalf of the City, to execute all papers,
documents, certificates, the Amendments, and other instruments that may be required for the
carrying out of the authority conferred by this Ordinance or to evidence said authority, including
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4862-0224-2657.2
without limitation the execution and delivery of a document setting forth the agreement and
certification of the parties thereto relating to certain federal tax matters and changes in the
documents approved hereby as approved by the officials of the City executing the same, and to
exercise and otherwise take all necessary action to the full realization of the rights, accomplishments
and purposes of the City under the Amendments and to discharge all of the obligations of the City
thereunder. For purposes of certifying to matters of arbitrage, the Mayor is hereby designated an
officer responsible for issuing the Bonds.
Section 3. That all acts and doings of the officials of the City which are in conformity
with the purposes and intent of this Ordinance and in furtherance of the amendment of the Bonds be,
and the same hereby are, in all respects, approved and confirmed.
Section 4. That the provisions of this Ordinance are hereby declared to be separable, and
if any section, phrase, or provision shall, for any reason, be declared to be invalid, such declaration
shall not affect the validity of the remainder of the sections, phrases, or provisions.
Section 5. That all ordinances, resolutions, orders, or parts thereof in conflict with the
provisions of this Ordinance ("Conflicting Council Actions") are to be read as authorizing this
Ordinance. To the extent such a reading is not possible, all Conflicting Council Actions are hereby
superseded and repealed to the extent of such conflict.
Section 6. This Ordinance shall be in full force and effect from and after its passage and
approval, in accordance with law.
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4862-0224-2657.2
PASSED this 16th day of May, 2023.
APPROVED this 16th day of May, 2023.
AYES: Alderpersons Grimm, Nelson, Lovell, Hale, Gossett, Ketcham, Lingenfelter
NAYS:
ABSENT: Alderperson Chamberlin
ATTEST:
C' Clerk
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4862-0224-2657.2
THIS BOND AND THE TERMS CONTAINED HEREIN ARE SUBJECT TO
THE PROVISIONS OF THAT CERTAIN INVESTOR LETTER OF THE
PURCHASER (AS DEFINED HEREIN) DATED , 2023, THE FORM OF
WHICH IS ATTACHED TO THE BOND AND LOAN AGREEMENT (AS
DEFINED HEREIN) AS EXHIBIT B (THE "INVESTOR LETTER"), AND ANY
TRANSFEREE OR ASSIGNEE OF THIS BOND (OR ANY PORTION THEREOF)
IS REQUIRED TO EXECUTE AND DELIVER THE THEN CURRENT FORM OF
THE INVESTOR LETTER AND AFFIRM THE REPRESENTATIONS
CONTAINED THEREIN PRIOR TO ACCEPTANCE OF THIS BOND.
THIS BOND AND THE OBLIGATION TO PAY PRINCIPAL OR
PREMIUM, IF ANY, WITH RESPECT HERETO, AND INTEREST HEREON ARE
SPECIAL, LIMITED OBLIGATIONS OF THE ISSUER, SECURED BY THE
BOND AND LOAN AGREEMENT AND PAYABLE SOLELY FROM PAYMENTS
MADE BY THE BORROWER PURSUANT TO THE BOND AND LOAN
AGREEMENT AND AS OTHERWISE PROVIDED IN THE BOND AND LOAN
AGREEMENT. THIS BOND AND THE OBLIGATION TO PAY PRINCIPAL OR
PREMIUM, IF ANY, WITH RESPECT HERETO, AND INTEREST HEREON DO
NOT AND SHALL NOT BE DEEMED TO CONSTITUTE AN INDEBTEDNESS
OR AN OBLIGATION OF THE ISSUER, THE STATE OF ILLINOIS OR ANY
POLITICAL SUBDIVISION THEREOF WITHIN THE PURVIEW OF ANY
CONSTITUTIONAL OR STATUTORY LIMITATION OR PROVISION OR A
CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS, IF ANY,
OF ANY OF THEM. NO OWNER OF THIS BOND SHALL HAVE THE RIGHT
TO COMPEL ANY EXERCISE OF THE TAXING POWER OF THE ISSUER,
THE STATE OF ILLINOIS OR ANY POLITICAL SUBDIVISION THEREOF TO
PAY ANY PRINCIPAL INSTALLMENT OF, REDEMPTION PREMIUM, IF ANY,
OR INTEREST ON THIS BOND.
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No. R-1
$23,040,000
UNITED STATES OF AMERICA
STATE OF ILLINOIS
CITY OF CANTON, FULTON COUNTY, ILLINOIS
HEALTH CARE FACILITIES REVENUE BOND, SERIES 2015B
(GRAHAM HOSPITAL ASSOCIATION PROJECT)
DATED DATE:
REGISTERED OWNER:
MAXIMUM PRINCIPAL AMOUNT:
MATURITY DATE:
June 2023
BMO Harris Investment Company, LLC
Twenty -Three Million Forty Thousand
Dollars
June 1, 2034
The CITY OF CANTON, FULTON COUNTY, ILLINOIS (the "Issuer"), a
municipality duly organized and validly existing under the Constitution and the laws of the
State of Illinois (the "State"), and by virtue of the Constitution and laws of the State,
including The Industrial Project Revenue Bond Act, 65 ILCS 5/11-74-1 et seq., as
supplemented and amended (the "Act'), for value received, hereby promises to pay, solely
from the sources described in this Bond, to the Registered Owner identified above, or
registered assigns, on the principal payment dates described below through the Maturity
Date specified above (or if this Bond is called for earlier redemption as described herein,
on the redemption date), the principal amount of this Bond solely from the sources
described in this Bond. This Bond will bear interest from the date hereof on the balance of
said principal sum from time to time remaining outstanding and unpaid at the rate or rates
described below until the payment of principal in full.
1. Bond and Loan Agreement. This Bond is the bond issued under the Bond
and Loan Agreement, dated as of November 1, 2015, among the Issuer, BMO Harris Bank
N.A., and Graham Hospital Association, an Illinois not for profit corporation (the
"Borrower"), as amended by the First Amendment to Bond and Loan Agreement and
Related Documents, dated September 26, 2019, among the Issuer, BMO Harris Investment
Company LLC, as assignee of BMO Harris Bank N.A. (together with its successors and
assigns and any successor owner of this Bond, the "Purchaser"), and the Borrower, and as
further amended by the Second Amendment to Bond and Loan Agreement and Related
Documents, dated , 2023, among the Issuer, the Purchaser, and the Borrower
(collectively, the "Bond and Loan Agreement'), and is limited to $23,040,000 in
authorized principal amount. The terms of this Bond include those in the Bond and Loan
Agreement.
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The Issuer has loaned the Bond Proceeds to the Borrower pursuant to the Bond and
Loan Agreement. The Borrower will use the Bond Proceeds, together with certain other
moneys, to (a) refinance the Issuer's Adjustable Rate Demand Healthcare Facilities
Revenue Bonds, Series 2009 (Graham Hospital Association Project), which were issued on
behalf of the Borrower to finance and refinance health care and related office
administrative facilities of the Borrower, including constructing an approximately 68,200
square foot medical office/clinic building, including furnishings and equipment therefor, to
house family medicine, internal medicine, pediatrics, general and vascular surgery,
orthopedics and obstetrics and gynecological surgery practices, located at 180 South Main
Street, Canton, Illinois, 61520 and constructing, renovating, furnishing and equipping
hospital facilities including obstetric facilities and an endoscopy suite located at 210 West
Walnut Street, Canton, Illinois, 61520, and refund the outstanding City of Canton, Illinois
Adjustable Rate Demand Industrial Revenue Bonds, Series 2006 (Graham Hospital
Association Project), the proceeds of which were used to finance acute care facilities
located at 210 West Walnut Street, Canton, Illinois 61520, and (b) finance or reimburse the
Borrower for certain of the costs incurred in connection with the issuance of the Bond, all
as permitted under the Act.
2. Definitions. To the extent not defined herein, capitalized terms used in this
Bond shall have the same meanings as set forth in the Bond and Loan Agreement.
3. Payments on this Bond. This Bond is a special, limited obligation of the
Issuer and, as provided in the Bond and Loan Agreement, is payable solely from payments
to be made by the Borrower under the Bond and Loan Agreement at the designated office
of the Purchaser as described below. The Borrower has agreed in the Bond and Loan
Agreement to pay to the Purchaser amounts sufficient to pay all amounts coming due on
this Bond.
(a) Principal. Principal of this Bond shall be payable on December
1, 2015 in the amount set forth as a mandatory sinking fund redemption payment in
Schedule I hereto and on November 1, 2025, which is the Purchase Date, subject to
any optional redemption, mandatory tender or other prepayment of this Bond
(including, without limitation, any acceleration of this Bond) as provided herein.
Notwithstanding the foregoing, the Purchaser, the Borrower and the Issuer may
designate in writing a different payment schedule, in substitution for Schedule 1
hereto, upon delivery to the Issuer, the Purchaser and the Borrower of an Opinion
of Bond Counsel to the effect that the designation of such different payment
schedule will not adversely affect the exclusion of interest on this Bond from gross
income for federal income tax purposes; provided, however, that such schedule
shall provide that the principal amount of this Bond remaining outstanding, if any,
is in an Authorized Denomination. Upon the designation of any new payment
schedule, Schedule I attached to the Bond and Loan Agreement and this Bond shall
be amended to reflect the terms of such new payment schedule. Principal shall be
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4855-0023-1521.3
paid by wire transfer on each date on which principal is due and payable to each
owner to the wire transfer account number or at the address, as the case may be,
shown on the registration books maintained by the Purchaser.
(b) Interest. Subject to the provisions summarized in paragraph (c), (d),
(e), (f), (g), and (h) below, this Bond shall bear interest at the Bank Purchase Rate
from the Closing Date to and including the earlier of the day preceding (i) its
redemption date, (ii) its prepayment date (by acceleration, mandatory tender or
otherwise), and (iii) the Purchase Date. Interest on this Bond shall be payable on
each Interest Payment Date. Interest shall be paid by wire transfer on each Interest
Payment Date to each owner to the wire transfer account number or at the address,
as the case may be, shown on the registration books maintained by the Purchaser.
The initial Bank Purchase Rate shall be established by the Purchaser on the
Closing Date and shall be effective for the period commencing on the Closing Date
to, but not including, November 1, 2025 (the "Initial Interest Period"), which is the
first Interest Rate Reset Date to occur immediately following the Closing Date.
After the Initial Interest Period, the Purchaser shall determine the Bank Purchase
Rate on each Computation Date, which rate shall be effective commencing on (and
including) the first day of the applicable Index Interest Period to (and including) the
last day of such Index Interest Period. Interest on this Bond shall be computed on
the basis of a 360 -day year, for the actual number of days elapsed.
Notwithstanding anything in the Bond and Loan Agreement to the contrary, at no
time shall the interest rate on this Bond exceed the Maximum Rate.
The amount of interest due on this Bond on an Interest Payment Date shall
be determined by the Purchaser and communicated to the Borrower by Electronic
Notice or other written notice no later than noon, Chicago time, on the third
Business Day prior to each Interest Payment Date (such communication to set forth
the amount of interest due at the then applicable Bank Purchase Rate).
(c) Rate Reset on Purchase Date. In connection with a Purchase Date,
this Bond may be retained by the then existing Purchaser, remarketed to a new
Purchaser or purchased by the Borrower, as described in Section 5 below.
If this Bond will be retained by the then existing Purchaser or remarketed to
a new Purchaser on a Purchase Date, then on or before noon, Chicago time, on each
Purchase Date, the interest rate on this Bond will be established for the next
succeeding Interest Period and will be the lowest rate of interest which will, in the
reasonable judgment of the then existing Purchaser (if this Bond is to be retained
by the then existing Purchaser) or the new Purchaser (if this Bond is to be
remarketed to a new Purchaser), permit such Purchaser to buy this Bond at par,
plus accrued interest (if any), on such Purchase Date. To effect such new interest
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4855-0023-1521.3
rate, (A) the Purchaser shall select a new Purchase Date, and (B) the definitions of
Applicable Factor, Applicable Margin, Bank Purchase Rate, Taxable Rate,
Adjusted SOFR Rate, Index Interest Period, Default Rate, Interest Period and
Purchase Date (together with any other necessary definitions or provisions)
contained in the Bond and Loan Agreement may be adjusted as needed so that the
new interest rate borne by this Bond commencing on such Purchase Date is the
lowest rate of interest which will, in the reasonable judgment of the then existing
Purchaser or the new Purchaser, as applicable, permit such Purchaser to buy this
Bond at par, plus accrued interest (if any), on such Purchase Date. Prior to the
effectiveness of the interest rate on this Bond for the next succeeding Interest Rate
Period, such interest rate shall be confirmed by a Calculation Agent as an interest
rate, including an Applicable Factor, Applicable Margin, Bank Purchase Rate,
Taxable Rate, Adjusted SOFR Rate, Index Interest Period, Default Rate, Interest
Period and Purchase Date, on this Bond that will permit this Bond to be sold at par,
plus accrued interest (if any), on the Purchase Date. Prior to the effectiveness of
any such new interest rate and such adjustments, there shall be delivered to the
Issuer, the Borrower and the then existing Purchaser (if this Bond is to be retained
by the then existing Purchaser) or the new Purchaser (if this Bond is to be
remarketed to a new Purchaser) an Opinion of Bond Counsel to the effect that such
new interest rate and such adjustments will not adversely affect the exclusion of
interest on this Bond from gross income for federal income tax purposes.
If on a Purchase Date this Bond is neither retained by the then existing
Purchaser as described in Section 5(a) below nor remarketed to one or more new
Purchasers as described in Section 5(c) below, but is purchased by the Borrower as
described in Section 5(b) hereof and not canceled, this Bond shall continue to bear
interest at the interest rate borne by this Bond for the immediately preceding
Interest Period. If this Bond is later remarketed on a date subsequent to such
Purchase Date, on or before noon, Chicago time, on the date this Bond is to be
remarketed, a new interest rate on this Bond will be established, which will be
effective until the next succeeding Purchase Date or the Maturity Date, as
applicable (subject to redemption or prepayment (by acceleration or otherwise)),
and such new interest rate shall be the lowest rate of interest which will, in the
reasonable judgment of the new Purchaser or Purchasers, as applicable, permit such
Purchaser or Purchasers to buy this Bond at par, plus accrued interest (if any), on
such date of remarketing. To effect such new interest rate, the definitions of
Applicable Factor, Applicable Margin, Bank Purchase Rate, Taxable Rate,
Adjusted SOFR Rate, Index Interest Period, Default Rate, Interest Period and
Purchase Date (together with any other necessary definitions or provisions)
contained in the Bond and Loan Agreement may be adjusted as needed so that the
new interest rate borne by this Bond commencing on such date of remarketing is
the lowest rate of interest which will, in the reasonable judgment of the new
Purchaser or Purchasers, as applicable, permit such Purchaser or Purchasers to buy
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4855-0023-1521.3
this Bond at par, plus accrued interest (if any), on such date of remarketing. Prior
to the effectiveness of such new interest rate on this Bond on the remarketing date,
such new interest rate shall be confirmed by a Calculation Agent as an interest rate,
including an Applicable Factor, Applicable Margin, Bank Purchase Rate, Taxable
Rate, Adjusted SOFR Rate, Index Interest Period, Default Rate, Interest Period and
Purchase Date, on this Bond that will permit this Bond to be remarketed at par, plus
accrued interest (if any), on the remarketing date. Prior to the effectiveness of any
such new interest rate, adjustments and remarketing, there shall be delivered to the
Issuer, the Borrower and the new Purchaser or Purchasers an Opinion of Bond
Counsel to the effect that such new interest rate, such adjustments and such
remarketing will not adversely affect the exclusion of interest on this Bond from
gross income for federal income tax purposes.
(d) Default Rate. In case any Event of Default occurs under the Bond
and Loan Agreement and is continuing, this Bond shall bear interest at the Default
Rate (as defined in the Bond and Loan Agreement). The Purchaser, the Borrower
and the Issuer may agree in writing prior to any adjustment that this Bond will bear
interest at a different Default Rate if there is delivered to the Issuer, the Purchaser
and the Borrower an Opinion of Bond Counsel to the effect that the designation of
such different Default Rate will not adversely affect the exclusion of interest on this
Bond from gross income for federal income tax purposes.
(e) Determination of Taxability. If a Determination of Taxability has
occurred, this Bond (or portion thereof to which such Determination of Taxability
applies) shall bear interest at the Taxable Rate from and after the Event of
Taxability that gave occasion to such Determination of Taxability or such earlier
period of time from which interest thereon (or portion of interest thereon) has been
so determined to be taxable.
(f) Unremarketed Bond. Notwithstanding anything herein to the
contrary, Unremarketed Bonds shall bear interest on the dates, in the amounts and
in the manner set forth in the Covenant Agreement. A Bond shall cease to be an
Unremarketed Bond only if such Unremarketed Bond is remarketed and transferred
or such Unremarketed Bond is redeemed in full.
(g) Benchmark Transition. Notwithstanding anything to the contrary in
the Bond and Loan Agreement, after the occurrence of a Benchmark Transition
Event the Purchaser may propose an alternate index to replace the SOFR Index
Rate as the index rate under the, which may include an adjustment, and shall
provide 30 days' advance written notice to the Issuer and the Borrower of the
proposed implementation of such index, and its effective date, and may propose
any reasonable technical, administrative or conforming changes to the Bond and
Loan Agreement and any other related documents, and may make any adjustments
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4855-0023-1521.3
to such index or interest rate spreads, to reflect the adoption and implementation of
the substitute index rate and to permit the administration thereof by the Purchaser
and the Calculation Agent, and shall propose amendments to the Bond and Loan
Agreement or any other related documents reflecting such conforming changes as
provided in the Bond and Loan Agreement. In selecting any such alternate index,
adjustment and conforming changes, the Purchaser shall give due consideration to
(i) any selection or recommendation of a replacement index rate or the mechanism
for determining such a rate by the Relevant Government Body, and (ii) any
evolving or then -prevailing market convention by the official sector for
determining an index as a replacement for the then current index for U.S. dollar-
denominated bilateral credit facilities at such time. Until the new index is effective,
this Bond will continue to bear interest with reference to the existing index so long
as it is available and not unlawful or impracticable and otherwise, subject to clause
(h) below, this Bond will bear interest with respect to the new index. Subject to
compliance with the Bond and Loan Agreement, including subparagraph (h) below,
this Bond and the Tax Agreement, the parties to the Bond and Loan Agreement
agree to amend the Bond and Loan Agreement and this Bond (if necessary) to
implement such new index that the Purchaser decides may be appropriate to reflect
the adoption and implementation of the new index.
(h) Opinion of Bond Counsel. Unless a rate described in clause (d), (e)
or (f) above shall be in effect, upon the transition to an interest rate based upon a
new index, adjustments to the index or interest rate spreads or any related changes
pursuant to clause (g) above (including, without limitation, any technical,
administrative or conforming changes in connection therewith), either (i) the
Borrower, at its own expense, will deliver to the Issuer and the Purchaser, an
Opinion of Bond Counsel addressed to and acceptable to the Issuer and the
Purchaser (at no cost to the Issuer or the Purchaser) that the replacement of the
current index with a replacement index and the proposed amendments related
thereto pursuant to clause (g) above do not adversely affect the exclusion from
gross income of interest on this Bond from gross income of the owner of the Bond
or (ii) if no such opinion is delivered to the Issuer and the Purchaser on the
proposed effective date of such replacement, the interest rate on the Bond shall
equal the Taxable Rate, until such opinion is delivered. The Taxable Rate shall be
based on (A) the then current Bank Purchase Rate, while the current index for such
rate is available and not impracticable or unlawful, or (B) the Bank Purchase Rate
utilizing the alternate index and adjustment, if any, if the prior index is unavailable,
impracticable or unlawful.
4. Redemption. This Bond is subject to redemption only as described below:
(a) Optional Redemption. Subject to any limitations set forth in the
Covenant Agreement, this Bond shall be subject to optional redemption prior to
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maturity, at the direction of the Borrower, in whole or in part (provided that this
Bond may not be redeemed in part if the principal amount remaining outstanding
after such partial redemption would not be an Authorized Denomination), on a date
selected by the Borrower, upon not less than 10 days' prior written notice to the
Issuer and the Purchaser (or such shorter time as agreed to by the Issuer and the
Purchaser), at a redemption price equal to 100% of the principal amount of such
Bond to be redeemed plus accrued interest thereon to the redemption date, and
without premium; provided, however, that, in addition to such redemption price, the
Borrower shall also pay to the Purchaser any amounts prescribed in Section 4.04 or
4.05 of the Covenant Agreement with respect to any such redemption.
Notwithstanding anything in the Bond and Loan Agreement to the contrary,
at no time will the unredeemed portion of this Bond be in a principal amount less
than $150,000. Partial redemption payments shall be allocated to the principal
installments payable on this Bond pro -rata among the remaining principal
installments unless the Purchaser and the Borrower otherwise agree and there is
delivered to the Issuer, the Purchaser and the Borrower an Opinion of Bond
Counsel to the effect that crediting such payments in another manner will not
adversely affect the exclusion of interest on this Bond from gross income for
federal income tax purposes. Schedule I attached hereto shall be amended as
promptly as possible to reflect the effect of such payment.
(b) Mandatory Sinking Fund Redemption. This Bond is subject to
mandatory sinking fund redemption in accordance with the schedule set forth in
Schedule I attached hereto.
(c) Unremarketed Bond. Any Unremarketed Bond is subject to special
mandatory redemption at a redemption price equal to 100% of the principal amount
of the Bond to be redeemed plus accrued interest thereon at the Purchaser Rate (as
defined in the Covenant Agreement) to but not including the date of such
redemption, on the dates, in the amounts and in the manner set forth in the
Covenant Agreement.
5. Tender.
(a) Tender on Purchase Date. Subject to the provisions of the
following paragraph, this Bond is subject to mandatory tender for purchase on each
Purchase Date. The purchase price shall be 100% of the outstanding principal
amount thereof plus accrued interest to the Purchase Date. This Bond shall bear
interest on and after each Purchase Date at the rate established in accordance with
the requirements of Section 3(c) or (d) above, including the requirement for the
delivery of an Opinion of Bond Counsel to the effect that the establishment of such
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rate will not adversely affect the exclusion of interest on this Bond from gross
income for federal income tax purposes.
The Borrower may, by written notice to the Purchaser, not sooner than 180
days but no later than ninety (90) days prior to the Purchase Date, request that the
Purchaser continue holding this Bond following such Purchase Date. If the
Borrower so requests, the Purchaser agrees in the Bond and Loan Agreement that it
will make reasonable efforts to respond to such request within thirty (30) days after
receipt of all information necessary, in the Purchaser's reasonable judgment, to
permit the Purchaser to make an informed credit decision. The Purchaser may, in
its sole and absolute discretion, decide to accept or reject any such request, and no
consent shall become effective unless the Purchaser shall have consented thereto in
writing; provided, however, that the failure of the Purchaser to respond to such a
request to extend the Purchase Date within such thirty (30) day period shall be
deemed an election by the Purchaser not to continue holding this Bond following
such Purchase Date. In its sole and absolute discretion, the Purchaser may propose
the length of the new Interest Period (including the new Purchase Date) and the
interest rate to be effective during such new Interest Period, including the
Applicable Factor, the Applicable Margin and any other conditions precedent to its
decision to continue to hold this Bond. In the event the Purchaser determines that it
will not make such proposal, this Bond shall be subject to mandatory tender
pursuant to the provisions of the Bond and Loan Agreement described in this
Section 5. If the Purchaser does make such proposal, the Borrower may, in its sole
and absolute discretion, decide to approve, reject or renegotiate any such proposal,
and no approval of the Borrower with respect thereto shall become effective unless
in writing. In the event the Borrower rejects such proposal or fails to definitively
respond to such proposal on or before thirty (30) days prior to the related Purchase
Date, the Borrower shall be deemed to have rejected or failed to approve such
proposal and this Bond shall be subject to mandatory tender pursuant to the
provisions of the Bond and Loan Agreement described in this Section 5.
The agreement by the Purchaser to continue to hold this Bond shall be
conditioned upon the preparation, execution and delivery of documentation in form
and substance satisfactory in all respects to the Purchaser.
If the Purchaser agrees to hold this Bond during the new Interest Period, the
interest rate to be borne by this Bond shall be established by the Purchaser and
confirmed by the Calculation Agent as described in Section 3(c) above and there
shall be delivered to the Issuer, the Borrower and the Purchaser an Opinion of Bond
Counsel to the effect that the establishment of such rate will not adversely affect the
exclusion of interest on this Bond from gross income for federal income tax
purposes.
E
4855-0023-1521.3
(b) Obligation to Purchase. In the event of any tender, the Borrower
has agreed under the Bond and Loan Agreement to purchase this Bond in whole at
a purchase price of 100% of the principal amount hereof plus accrued interest to the
Purchase Date. Upon the purchase of this Bond, this Bond shall thereafter be
registered in the name of the Borrower, or such other person or entity as the
Borrower shall designate, subject to the requirements of paragraph (c) below, or at
the direction of the Borrower, shall be canceled by the Bond Registrar. No such
purchase of this Bond shall be deemed to be an extinguishment of the debt
represented by this Bond unless this Bond is canceled following such purchase.
(c) Remarketing. It is expressly acknowledged in the Bond and Loan
Agreement by the parties to the Bond and Loan Agreement that in the event this
Bond is tendered for purchase on a Purchase Date, the Borrower may seek to
remarket such tendered Bond to one or more new Purchasers and may apply any
proceeds thereof to the payment of the purchase price of such tendered Bond;
provided, however, that this Bond may only be remarketed if (i) the interest rate to
be borne by this Bond is established in accordance with Section 3(c) above,
(ii) there is delivered to the Issuer, the Borrower and each new Purchaser an
Opinion of Bond Counsel to the effect that the remarketing of this Bond to each
new Purchaser will not adversely affect the exclusion of interest on this Bond from
gross income for federal income tax purposes, (iii) each new Purchaser makes the
representations set forth in Section 2.3 and Section 2.4 of the Bond and Loan
Agreement and executes and delivers an Investor Letter, (iv) the Borrower
complies with (A) all applicable rules and procedures of the Issuer and (B) all
applicable state and federal securities and other laws in connection with such
remarketing and (v) the Purchaser shall have received (A) 100% of the principal
amount of such tendered Bond to be remarketed, plus accrued interest thereon, and
(B) payment and satisfaction in full of all Obligations (as defined in the Covenant
Agreement) under the Covenant Agreement.
6. Denominations; Transfer, Exchange. This Bond is initially issued as a
single fully registered Bond without coupons in the denomination equal to the then
outstanding principal amount hereof.
A registered owner may transfer this Bond in accordance with the Bond and Loan
Agreement. The Purchaser, as bond registrar (the "Bond Registrar"), may require a
registered owner, among other things, to furnish appropriate endorsements and transfer
documents and to pay any taxes and fees required by law or permitted by the Bond and
Loan Agreement.
7. Persons Deemed Owners. The registered owner of this Bond may be
treated as the absolute owner thereof for all purposes whether or not this Bond shall be
overdue, and shall not be bound by any notice to the contrary.
Ito]
4855-0023-1521.3
8. Defaults and Remedies. The Bond and Loan Agreement provides that the
occurrences of certain events constitute Events of Default. If an Event of Default occurs
and is continuing, the Purchaser may declare the entire principal of this Bond to be due and
payable immediately, as further described in the Bond and Loan Agreement. An Event of
Default and its consequences may be waived as provided in the Bond and Loan
Agreement.
9. Authentication. This Bond shall not be valid until the Bond Registrar or an
authenticating agent signs the Certificate of Authentication attached hereto.
11
4855-0023-1521.3
IN WITNESS WHEREOF, as provided by the Act, the City of Canton, Fulton
County, Illinois has caused this Bond to be executed in its name and on its behalf by the
manual or facsimile signature of its Mayor and its corporate seal to be hereunto affixed
manually or by facsimile and attested to by the manual or facsimile signature of its City
Clerk.
CITY OF CANTON, FULTON COUNTY,
ILLINOIS
By:4 ),
Its: ayor
[SEAL]
Attest:
By: IL'
Its: City Clerk
12
4855-0023-1521.3
CERTIFICATE OF AUTHENTICATION
BMO HARRIS INVESTMENT COMPANY LLC, as Bond Registrar, certifies that
this is the Bond referred to in the Bond and Loan Agreement.
BMO HARRIS INVESTMENT COMPANY
LLC, as Bond Registrar
By:
Its:
Date of Authentication: , 2023
13
4855-0023-1521.3
Senior Vice President
FORM OF ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond, and does hereby irrevocably constitute and
appoint , attorney to transfer the Bond on the books kept for
registration and transfer of the within Bond, with full power of substitution in the premises.
Dated:
Note: The signature to this Assignment must
correspond with the name as it appears upon
the face of the within Bond in every
particular, without enlargement or alteration
or any change whatsoever.
Signature guaranteed by:
Note: The signature to this assignment must
correspond with the name as it appears upon
the face of the within Bond in every
particular, without alteration or enlargement
or any change whatever. Signature(s) must be
guaranteed by an "eligible guarantor
institution" meeting the requirements of the
Bond Registrar, which requirements include
membership or participation in Stamp or such
other "signature guaranty program" as may be
determined by the Bond Registrar in addition
to or in substitution for Stamp, all in
accordance with the Securities Exchange Act
of 1934, as amended.
14
4855-0023-1521.3
FORM OF REGISTRATION INFORMATION
Under the terms of the Bond and Loan Agreement, the Bond Registrar will register
the Bond in the name of a transferee only if the owner of the Bond (or his duly authorized
representative) provides as much of the information requested below as is applicable to
such owner prior to submitting this Bond for transfer.
Name:
Address:
Social Security or Employer
Identification Number:
If a Trust, Name and Address of
Trustee(s) and Date of Trust:
15
4855-0023-1521.3
SCHEDULE I TO THE BOND
PRINCIPAL PAYMENTS
June 1 of the Year
Amount
2020
1,050,000
2021
1,110,000
2022
1,165,000
2023
1,225,000
2024
1,290,000
2025
1,355,000
2026
1,425,000
2027
1,500,000
2028
1,575,000
2029
1,660,000
2030
1,745,000
2031
1,835,000
2032
1,930,000
2033
2,035,000
2034
2,140,000
Schedule I
4855-0023-1521.3
SECOND AMENDMENT TO BOND AND LOAN AGREEMENT
AND RELATED DOCUMENTS
This Second Amendment to Bond and Loan Agreement and Related Documents
(this "Amendment") made as of the _ day of , 2023 (the "Amendment
Date"), by and among BMO HARRIS INVESTMENT COMPANY LLC, a Nevada
limited liability company, GRAHAM HOSPITAL ASSOCIATION, an Illinois not-for-
profit corporation (the "Borrower"), and the CITY OF CANTON, FULTON COUNTY,
ILLINOIS, a municipality duly organized and validly existing under the Constitution and
laws of the State of Illinois (the "Issuer").
RECITALS:
WHEREAS, the Issuer issued its $26,755,000 Health Care Facilities Revenue
Bond, Series 2015B (Graham Hospital Association Project) (the "Bond") and BMO
Harris Bank N.A., a national banking association (the "Original Purchaser") purchased
the Bond pursuant to that certain Bond and Loan Agreement, dated as of November 1,
2015 (the "Original Bond and Loan Agreement"), by and among the Issuer, Borrower
and Original Purchaser, as amended by that certain First Amendment to Bond and Loan
Agreement and Related Documents, dated September 26, 2019 (the "First Amendment"
and together with the Original Bond and Loan Agreement, the "Bond and Loan
Agreement"), by and among the Issuer, Borrower and BMO Harris Investment Company
LLC, a Nevada limited liability company, as successor to the Original Purchaser (the
"Purchaser"); and
WHEREAS, the proceeds of the Bond were loaned by the Issuer to the Borrower
for use in the Project (as defined in the Bond and Loan Agreement), and the Borrower is
obligated to pay to the Purchaser amounts sufficient to pay the principal of, premium, if
any, and interest on the Bond when due; and
WHEREAS, the parties hereto wish to amend the Bond and Loan Agreement and
the Related Documents pursuant to this Amendment to modify the interest rate of the
Bond.
NOW, THEREFORE, in consideration of the foregoing and the mutual
undertakings herein set forth, the parties hereto agree as follows:
1. Definitions. Capitalized terms not otherwise defined herein shall have the
meanings given them in the Bond and Loan Agreement.
2. Conditions Precedent. The agreement by the Purchaser to amend the
Bond and Loan Agreement and the Related Documents shall be subject to satisfaction in
full of the following conditions:
4874-7102-8321.3
2.1 All of the representations, warranties and covenants of the Borrower
contained in the Bond and Loan Agreement and any of the other Related
Documents shall be true and correct in all material respects as of the date hereof.
2.2 No event or condition has occurred and is continuing as of the date hereof
which constitutes an Event of Default under the Bond and Loan Agreement or any
of the other Related Documents or which, with notice or lapse of time, would
constitute an Event of Default under the Bond and Loan Agreement or any of the
other Related Documents.
2.3 No event has occurred which would reasonably be expected to have a
material adverse effect on the financial condition of the Borrower.
2.4 Receipt by the Purchaser of any other documents, instruments and
opinions of counsel as the Purchaser may reasonably require.
3. Amendments to Bond and Loan Agreement.
3.1 The definition of `Bank Purchase Rate" in Article I of the Bond and Loan
Agreement shall be deleted in its entirety and replaced with the following:
"Bank Purchase Rate" means the per annum interest rate borne by
the Bond equal to the sum of (i) the product of (a) the Applicable Factor
times (b) the Adjusted SOFR Rate for each Index Interest Period, as
determined on each Computation Date, plus (ii) the Applicable Margin.
The Bank Purchase Rate shall be rounded up to the fifth decimal place.
3.2 The definition of `Base Rate" in Article I of the Bond and Loan
Agreement shall be deleted in its entirety and replaced with the following:
"Base Rate" means, for any day, a fluctuating rate of interest per
annum equal to the greatest of (i) the Prime Rate in effect at such time,
(ii) the Federal Funds Rate in effect at such time plus two percent (2.00%),
(iii) the Daily Simple SOFR in effect at such time plus three percent
(3.00%), and (iv) seven percent (7.00%). Each change in the Base Rate
shall take effect simultaneously with the corresponding change or changes
in the Prime Rate, the Federal Funds Rate or the Daily Simple SOFR, as
the case may be.
3.3 The definition of "Business Day" in Article I of the Bond and Loan
Agreement shall be deleted in its entirety and replaced with the following:
"Business Day" means a day which is not (a) a Saturday, Sunday
or legal holiday on which banking institutions in New York, New York,
Chicago, Illinois or the State are authorized by law to close, (b) a day on
which the New York Stock Exchange or the Federal Reserve Bank is
2
4874-7102-8321.3
closed or (c) a day on which the principal office of the Calculation Agent
or the Purchaser is closed. When used while the Bond bears interest at a
rate based on SOFR or any direct or indirect calculation or determination
of SOFR, in order for a day to be a Business Day, such day must also be a
U.S. Government Securities Business Day.
3.4 The definition of "Computation Date" in Article I of the Bond and Loan
Agreement shall be deleted in its entirety and replaced with the following:
"Computation Date" means the second Business Day immediately
preceding each Interest Rate Reset Date.
3.5 The definition of "LIBOR Interest Period" in Article I of the Bond and
Loan Agreement shall be deleted in its entirety and replaced with the following:
"Index Interest Period' means:
(a) initially, the period beginning on (and including) the
Closing Date and ending on the day immediately preceding December
1, 2015 (the first Interest Rate Reset Date to occur immediately following
the Closing Date); and
(b) thereafter, each period commencing on an Interest Rate
Reset Date and ending on the day occurring immediately prior to the next
Interest Rate Reset Date; provided, however, that no Index Interest Period
may end later than the Maturity Date.
3.6 A following new definitions shall be added to Article I of the Bond and
Loan Agreement:
"Adjusted SOFR Rate" means the sum of (i) the SOFR Index Rate
plus (ii) the Benchmark Adjustment.
"Benchmark Adjustment" means, with respect to the SOFR Index
Rate, 0.114488% and (ii) with respect to any other Benchmark, the
Benchmark Replacement Adjustment determined in accordance with
Section 3.3(f) hereof
"Benchmark Transition Event" means the occurrence of one or
more of the following events with respect to the SOFR Index Rate (as
determined by the Purchaser in its sole discretion): (a) the SOFR Index
Rate is no longer available or published, (b) the administrator of the SOFR
Index Rate or a governmental authority having jurisdiction over the
Purchaser has made a public statement that the SOFR Index Rate shall no
longer be made available, used or advisable for determining interest rates
of loans, or (c) loans are currently being executed containing, or loans that
3
4874-7102-8321.3
include benchmark replacement language similar to that contained in this
Agreement are being executed or modified (as applicable) to incorporate
or adopt, a new benchmark interest rate to replace the SOFR Index Rate
referred therein.
"Daily Simple SOFR Rate" means, for any day, SOFR, with the
conventions for this rate (which will include a lookback) being established
by the Purchaser in accordance with the conventions for this rate selected
or recommended by the Relevant Governmental Body for determining
"Daily Simple SOFR" for bilateral business loans; provided, that if the
Purchaser decides that any such convention is not administratively feasible
for the Purchaser, then the Purchaser may establish another convention in
its reasonable discretion.
"FRB" means the Board of Governors of the Federal Reserve
System of the United States.
"Relevant Governmental Body" means the FRB and/or the Federal
Reserve Bank of New York, or a committee officially endorsed or
convened by the FRB and/or the Federal Reserve Bank of New York, or
any successor thereto.
"Second Amendment Effective Date" means , 2023.
"SOFR" means a rate equal to the secured overnight financing rate
(as administered by the Federal Reserve Bank of New York) or a
successor administrator of the secured overnight financing rate).
"SOFR Index Rate" means, for any day, the one-month forward
looking secured overnight financing rate as administered by the CME
Group Benchmark Administration Limited (CBA) (or a successor
administrator designated by the relevant authority, if none is so
designated, a successor administrator selected by the Purchaser) as quoted
for the day that is the Computation Date. If the SOFR Index Rate as so
determined would be less than 0.0%, the SOFR Index Rate will be deemed
to be 0.0% for the purposes of this Agreement. Each determination of the
SOFR Index Rate made by the Calculation Agent shall be conclusive and
binding absent manifest error.
"U.S. Government Securities Business Day" means any day except
for (i) a Saturday, (ii) a Sunday or (iii) .a day on which the Securities
Industry and Financial Markets Association, or any successor thereto,
recommends that the fixed income departments of its members be closed
for the entire day for purposes of trading in United States government
securities.
4
4874-7102-8321.3
3.7 All references to "Adjusted LIBOR Rate" in the Bond and Loan
Agreement shall be replaced with "Adjusted SOFR Rate."
3.8 All references to "LIBOR Interest Period" in the Bond and Loan
Agreement shall be replaced with "Index Interest Period."
3.9 The first sentence in Section 3.3(b) of the Bond and Loan Agreement shall
be deleted in its entirety and replaced with the following:
"Subject to the provisions of Section 3.3(c), (d), (e), (f), (g), and
(h) hereof, the Bond shall bear interest at the Bank Purchase Rate from the
Closing Date to and including the earlier of the day preceding (i) its
redemption date, (ii) its prepayment date (by acceleration, mandatory
tender or otherwise) and (iii) the Purchase Date."
3.9 The following new subsections shall be added to Section 3.3 of the Bond
and Loan Agreement:
"(g) Benchmark Transition. Notwithstanding anything to the
contrary herein, after the occurrence of a Benchmark Transition Event the
Purchaser may propose an alternate index to replace the SOFR Index Rate
as the index rate hereunder, which may include an adjustment, and shall
provide 30 days' advance written notice to the Issuer and the Borrower of
the proposed implementation of such index, and its effective date, and
may propose any reasonable technical, administrative or conforming
changes to this Agreement and any other related documents, and may
make any adjustments to such index or interest rate spreads, to reflect the
adoption and implementation of the substitute index rate and to permit the
administration thereof by the Purchaser and the Calculation Agent, and
shall propose amendments to this Agreement or any other related
documents reflecting such conforming changes as provided herein. In
selecting any such alternate index, adjustment and conforming changes,
the Purchaser shall give due consideration to (i) any selection or
recommendation of a replacement index rate or the mechanism for
determining such a rate by the Relevant Government Body, and (ii) any
evolving or then -prevailing market convention by the official sector for
determining an index as a replacement for the then current index for U.S.
dollar-denominated bilateral credit facilities at such time. Until the new
index is effective, the Bond will continue to bear interest with reference to
the existing index so long as it is available and not unlawful or
impracticable and otherwise, subject to clause (h) below, the Bond will
bear interest with respect to the new index. Subject to compliance with
this Agreement, including subparagraph (h) below, the Bond and the Tax
Agreement, the parties hereto agree to amend this Agreement and the
Bond (if necessary) to implement such new index that the Purchaser
5
4874-7102-8321.3
decides may be appropriate to reflect the adoption and implementation of
the new index.
(h) Opinion of Bond Counsel. Unless a rate described in clause
(d), (e) or (f) above shall be in effect, upon the transition to an interest rate
based upon a new index, adjustments to the index or interest rate spreads
or any related changes pursuant to clause (g) above (including, without
limitation, any technical, administrative or conforming changes in
connection therewith), either (i) the Borrower, at its own expense, will
deliver to the Issuer and the Purchaser, an Opinion of Bond Counsel
addressed to and acceptable to the Issuer and the Purchaser (at no cost to
the Issuer or the Purchaser) that the replacement of the current index with
a replacement index and the proposed amendments related thereto
pursuant to clause (g) above do not adversely affect the exclusion from
gross income of interest on the Bond from gross income of the owner of
the Bond or (ii) if no such opinion is delivered to the Issuer and the
Purchaser on the proposed effective date of such replacement, the interest
rate on the Bond shall equal the Taxable Rate, until such opinion is
delivered. The Taxable Rate shall be based on (A) the then current Bank
Purchase Rate, while the current index for such rate is available and not
impracticable or unlawful, or (B) the Bank Purchase Rate utilizing the
alternate index and adjustment, if any, if the prior index is unavailable,
impracticable or unlawful."
3.10 The Purchaser's address in Section 9.1 of the Bond and Loan Agreement
shall be deleted in its entirety and replaced with the following:
If to the Purchaser: BMO Harris Investment Company LLC
320 S. Canal Street
Chicago, Illinois 60606
Attention: Deborah Ellis
Telephone: (312) 461-2734
Telecopier (General): (312) 293-5811
Email: deborah.ellis@bmo.com
3.11 The Form of Bond attached to the Bond and Loan Agreement as Exhibit A
shall be replaced with the Form of Bond attached hereto as Exhibit A.
4. Amendments to Related Documents. The Related Documents shall be
amended in all respects necessary to conform to the changes to the Bond and Loan
Agreement as set forth herein. All references in any of the Related Documents to the
term "Related Documents" are hereby changed to include this Second Amendment to
Bond and Loan Agreement and Related Documents.
5. Events of Default and Remedies. Any breach of or default under any of
the terms or provisions of this Amendment shall constitute an Event Default under the
Bond and Loan Agreement and the Related Documents.
0
4874-7102-8321.3
6. Waiver and Release of Claims. The Borrower represents to the Purchaser
that it has no defenses, setoffs, claims or counterclaims of any kind or nature whatsoever
against the Purchaser in connection with the Bond and Loan Agreement or any of the
other Related Documents or any extensions or modifications thereof or any action taken
or not taken by the Purchaser with respect thereto. Without limiting the generality of the
foregoing, and in consideration of the Purchaser's agreements hereunder, the Borrower
hereby releases and discharges the Purchaser, its affiliates and each of their officers,
agents, employees, attorneys, insurers, successors and assigns (collectively, the "Released
Parties"), from and against any and all liabilities, rights, claims, losses, expenses, or
causes of action, known or unknown, arising out of any action or inaction by any of the
Released Parties prior to the date hereof, with respect to the Bond and Loan Agreement
or any of the other Related Documents or this Amendment, or any matter in any way
related thereto or arising in conjunction therewith. The Borrower also waives, releases,
and discharges the Released Parties and each of them from and against any and all known
or unknown rights to setoff, defenses, claims, counterclaims, causes of action, any other
bar to the enforcement of this Amendment or the Bond and Loan Agreement or any of the
other Related Documents.
7. Disclaimer of Reliance. The Borrower expressly disclaims any reliance
on any oral representation made by the Released Parties or any of them with respect to
the subject matter of this Amendment. The Borrower acknowledges and agrees that the
Purchaser is specifically relying upon the representations, warranties, releases and
agreements contained herein, and that this Amendment is being executed by the
Borrower and delivered to the Purchaser as an inducement to the Purchaser to consent as
set forth herein.
8. Notice. All notices and demands under and with respect to this
Amendment shall be given as provided in the Bond and Loan Agreement.
9. Terms. All terms, covenants and provisions of the Bond and Loan
Agreement or any of the other Related Documents not expressly amended hereby shall
remain in full force and effect, and all representations, warranties, covenants and
agreements made by the Borrower in the Bond and Loan Agreement or any of the other
Related Documents are reaffirmed, ratified and restated by Borrower as true and correct
as of the date hereof.
10. Expenses. The Borrower agrees to pay all of the Issuer's and Purchaser's
reasonable expenses and costs, including without limitation, reasonable attorneys' fees
and costs of litigation, incurred in connection with the enforcement of this Amendment or
any of the Related Documents, all of which expenses and costs shall constitute additional
indebtedness of Borrower pursuant to the Related Documents.
11. Counterparts. This Amendment may be signed in one or more
counterparts, each of which shall be deemed an original, and all of which shall constitute
one and the same agreement and shall be binding on and inure to the benefit of the
7
4874-7102-8321.3
undersigned and their respective successors and assigns as if all had signed one
instrument.
4874-7102-8321.3
IN WITNESS WHEREOF, the parties named below have caused this Amendment
to be executed as of the date and year first above written.
THE CITY OF CANTON
FULTON COUNTY, ILLINOIS
BMO HARRIS INVESTMENT COMPANY
LLC
By:
Name:
Title:
GRAHAM HOSPITAL ASSOCIATION
Name:
Title:
Signature Page to
Second Amendment to Bond and Loan Agreement and Related Documents (Series 20158)
EXHIBIT A
FORM OF BOND
4874-7102-8321.3