Res 1997-097 - Laserfiche WebLink

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í . 61A- NOW, THEREFORE, in the event that Amtrak defaults and fails to repay all or part of the State of Texas loan, TxDOT and the City hereby agree to the following: 1. As provided in the loan agreement, TxDOT shall initiate action to ensure that the rolling stock collateralizing the Amtrak loan is removed from service and moved to a secure location. 2. TxDOT shall initiate action to ensure that title to the rolling stock collateralizi,ng the Amtrak loan is transferred to the State of Texas. 3. TxDOT shall liquidate the collateral and apply 100% of the sale proceeds toward the outstanding loan balance. If the sale proceeds satisfY the debt in full, TxDOT shall notifY the City in writing that the debt has been retired. If after applying the sale proceeds an outstanding balance remains, TxDOT shall calculate the amount to be paid by the City and shall notifY the City in writing of the amount due and payable to the State of Texas. The amou'ñi to be paid by the City shall represent the City's percentage share (based on population) of one half of the deficiency required to be paid collectively by the cities served by the Texas Eagle. TxDOT shall use the 1994 update of the federal census data to detennine the City's percentage share of the deficit. TxDOT shall be responsible for the remaining one half of the deficiency. 4. Within 90 days of receiving written notice from TxDOT, or by July~ 1, 1999, whichever is later, the City shall remit to the State of Texas payment in full of all funds due from the City under the terms of this agreement. 5. Subsequent to the retirement of the debt by TxDOT and the served municipalities, TxDOT shall exercise its rights under the Amtrak loan agreement to seek from Amtrak compensation in an amount equal to the amount paid collectively by TxDOT and the served municipalities toward retirement of the Amtrak debt. Legal and administrative expenses (including expenses associated - with liquidation of the collateral), incurred by TxDOT while seeking compensation from Amtrak, shall be subtracted from any funds recovered and shall be retained by TxDOT. Fifty percent (50%) of the balance of funds recovered shall be returned to the served municipalities which guaranteed the debt. The percentage share to be returned to each city shall be equal to each city's percentage share paid toward retirement of the Amtrak debt. 6. Any changes in the time frame, character, provisions of this agreement, or obligations of the parties hereto shall be enacted by written amendment executed by both the City and TxDOT. 7. In the event of any dispute concerning the tenns of the agreement, the rights and responsibilities of the parties hereunder, or an alleged breach by either party of the agreement, venue shall be in Travis County, Texas. 8. All notices to either party to the other required under this agreement shall be delivered personally or sent by certified u.S. mail, postage prepaid, addressed to such party at the following 2