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<br />-31- <br />ARTICLE VII <br /> <br />EVENTS OF DEFAULT AND REMEDIES <br /> <br />SECTION 7.01. Events of Default. The following events constitute Events of Default <br />hereunder: <br /> <br />(a) Failure to pay any installment of the principal of any Bonds when <br />due, whether at maturity as therein expressed, by proceedings for redemption, by <br />acceleration, or otherwise. <br /> <br />(b) Failure to pay any installment of interest on the Bonds when due. <br /> <br />(c) Failure by the Authority to observe and perform any of the other <br />covenants, agreements or conditions on its part contained in this Indenture or in <br />the Bonds, if such failure has continued for a period of 60 days after written <br />notice thereof, specifying such failure and requiring the same to be remedied, <br />has been given to the Authority by the Trustee provided, however, if in the <br />reasonable opinion of the Authority the failure stated in the notice can be <br />corrected, but not within such 60 day period, such failure shall not constitute an <br />Event of Default if the Authority institutes corrective action within such 60 day <br />period and thereafter diligently and in good faith cures the failure in a reasonable <br />period of time. <br /> <br />(d) The commencement by the Authority of a voluntary case under <br />Title 11 of the United States Code or any substitute or successor statute. <br /> <br />(e) The occurrence and continuation of an event of default under and <br />as defined in the Installment Sale Agreement. <br /> <br />SECTION 7.02. Acceleration; Other Remedies. If any Event of Default occurs, then, <br />and in each and every such case during the continuance of such Event of Default, the Trustee <br />may, and shall, at the written direction of the Owners of a majority in aggregate principal amount <br />of the Bonds at the time Outstanding shall, in each case, upon receipt of indemnification <br />satisfactory to Trustee against the costs, expenses and liabilities to be incurred in connection <br />with such action, upon notice in writing to the Authority, declare the principal of all of the Bonds <br />then Outstanding, and the interest accrued thereon, to be due and payable immediately, and <br />upon any such declaration the same shall become and shall be immediately due and payable, <br />anything in this Indenture or in the Bonds contained to the contrary notwithstanding. <br /> <br />The foregoing provision, however, is subject to the condition that if, at any time after the <br />principal of the Bonds shall have been so declared due and payable, the Authority shall pay to <br />or shall deposit with the Trustee a sum sufficient to pay all principal of the Bonds maturing prior <br />to such declaration and all matured installments of interest (if any) upon all the Bonds, and any <br />and all other defaults known to the Trustee (other than in the payment of principal of and <br />interest on the Bonds due and payable solely by reason of such declaration) shall have been <br />made good or cured to the satisfaction of the Trustee, or provision deemed by the Trustee to be <br />adequate shall have been made therefor, then, and in every such case, the Trustee, on behalf <br />of the Owners of all of the Bonds, shall rescind and annul such declaration and its <br />consequences; but no such rescission and annulment shall extend to or shall affect any <br />subsequent default, or shall impair or exhaust any right or power consequent thereon; provided, <br />Page 47 of 205