CUSIP 613061AJ9
- ISIN: US613061AJ96
- Entity Name: Medical Clinic Board of the City of Montgomery/The
- Sector: Municipal Agency
- Announcement Date: *****
- Effective Date: *****
- Issue Date: *****
- Maturity Date: *****
- Country of Issuer: *****
- Region: N.Amer
- Issue Currency: *****
- CA Type: Default Notice
- News: UMB Bank, N.A. is the trustee (the Trustee) for the above-referenced bonds (the Bonds) issued under that certain Trust Indenture dated as of May 1, 2015 (the Indenture) between The Medical Clinic Board of the City of Montgomery 1976 East (the Issuer) and the Trustee. The assisted living facility financed with the proceeds of the Bonds (the Facility) was leased to Montgomery ALF, LLC (the Lessee) by the Issuer pursuant to that certain Lease Agreement dated as of May 1, 2015 (the Lease Agreement) between the Issuer and the Lessee. Capitalized terms used without definition herein shall have the meanings ascribed such terms in the Indenture. Notice of Events of Default Prior to the date of this notice, the Trustee has provided notice to the Lessee of certain events of default under the Lease Agreement, which also constitute events of default under the Indenture and Mortgage: (1) Under Section 3.6 of the Lease Agreement, the Lessee has agreed to make funds available to the Issuer to complete the rehabilitation of the Facility financed with the proceeds of the Bonds. The Trustee has been named in a lawsuit pending in Montgomery County, Alabama styled Maxus, Inc. v. Montgomery ALF, LLC et al, Case Number CV-2016-900623.00, in which the general contractor for the Facility alleges nonpayment of the costs of the rehabilitation of the Facility. As of the date of this notice, the Lessee has not entered an appearance in this lawsuit. (2) Under Section 4.2(a)(i) of the Lease Agreement, the Lessee has agreed to deposit into the Interest Account of the Bond Fund an amount equal to the next interest payment due on the Bonds, provided that the requirement to make payment for interest on the Bonds may be reduced to the extent there is money on deposit in the Capitalized Interest Account created under the Indenture. The Trustee has notified the Lessee that the Capitalized Interest Account is no longer sufficient to pay interest on the Bonds and has requested payment under Section 4.2(a)(i) of the Lease Agreement. As of the date of this notice, the Lessee has not made the payment required by Section 4.2(a)(i) of the Lease Agreement. The Indenture and Lease Agreement permit the Trustee to utilize funds on deposit in the Project Fund to make interest payments during the Rehabilitation Period. For Bond Document please visit www.BondPDF.com
- Description: *****
- Bond Document: https://www.bondpdf.com/
- Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US613061AJ96
