Disposition of Project Equipment, Covenant Against Waste Clause Samples

Disposition of Project Equipment, Covenant Against Waste. The Lessee shall have the right, at any time and from time to time, unless an Event of Default shall have occurred and be continuing under this Agreement, without the consent of the Board, to sell or dispose of any Project Equipment which, in the opinion of the Lessee, may have become obsolete or unfit for use or no longer useful or profitable in the conduct of the operations of the Lessee under this Agreement. Any net cash proceeds received by the Lessee from the sale or disposition of Project Equipment under this Section shall be paid to the Trustee for deposit into the Project Fund unless the sum of such proceeds and any other proceeds received by the Lessee from sales or dispositions of Project Equipment during the preceding 12-month period and not paid to the Trustee The Lessee shall be entitled, in accordance with Section 7.2 of the Indenture, to withdraw such proceeds within 12 months after the receipt thereof by the Trustee to pay, or to reimburse the Lessee for the payment of, the cost of acquiring other Project Equipment not necessarily of the same character, but of the value at least equal to that so sold or disposed of at the time of sale or disposition, which shall forthwith become the property of the Board, upon furnishing a Progress Certificate dated not more than 30 days prior to the request for withdrawal, setting forth in substance the matters set forth in subsection (b) of Section 4.3, but with respect to such acquisition of Project Equipment. Any such proceeds which remain in the Project Fund for a period of 12 months after receipt by the Trustee shall be applied in accordance with Section 7.3 of the Indenture and, if to be applied in redemption of Bonds under Section 7.3(2) of the Indenture, the Lessee shall specify in a written notice given to the Board and the Trustee the Redemption Date for such redemption. The Lessee covenants not to do or suffer any waste to any buildings or structures on the Leased Land or to the Project Equipment.