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to enforce the partnership’s obligations under the guarantee
agreement.
Pursuant to the loan guarantee agreement, DOE agreed that
its recovery on any claim against the partnership or any partner
would generally be limited to the partnership’s assets and to the
partners’ interests in those assets. The partnership agreed, “To
the full extent permitted by applicable law,” to waive the
benefit of any redemption law that might otherwise have been
applicable to any right under this agreement. The loan guarantee
agreement states that it “shall be governed by and construed and
interpreted in accordance with the federal laws of the United
States. It is the intent of the United States to preempt any
state law conflicting with the provisions of this Agreement”.
Pursuant to the loan guarantee agreement, the partnership
was prohibited from engaging in any business other than the
project. All proceeds from the guaranteed debt were required to
be promptly applied to fund costs that were necessary,
reasonable, and directly related to the design, construction, and
startup of the project facilities.
Indenture of Mortgage
The credit agreement and the loan guarantee agreement were
secured by an Indenture of Mortgage and Security Agreement dated
January 15, 1982, between the partnership, as debtor and
mortgagor, and Citibank, N.A. (trustee), as trustee and
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Last modified: May 25, 2011