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2 <br />(b) Purpose of the Bonds. In order to finance certain improvements to the <br />City’s water system (the “Water System”), the City and the Authority previously entered into an <br />Installment Purchase Contract, dated as of May 1, 2017 (the “2007 Installment Purchase <br />Contract”), and, pursuant to an Indenture of Trust, dated as of May 1, 2007 (the “2007 <br />Indenture”) between the Authority and The Bank of New York Mellon Trust Company, N.A., as <br />trustee (the “Prior Trustee”), the Authority issued its Water Revenue Bonds, Series 2007A, in <br />the original principal amount of $15,150,000 (the “Refunded Bonds”). <br />The purpose of issuing the Bonds is to provide a source of funds to refinance the City’s <br />obligations under the 2007 Installment Purchase Contract and to redeem the Refunded Bonds. <br /> <br />(c) Security for the Bonds. The Bonds are payable from “Revenues” consisting <br />primarily of installment payments (the “Installment Payments”) payable by the City to the <br />Authority under an Installment Purchase Contract dated as of ____1, 2017 (the “Installment <br />Purchase Contract”), and amounts on deposit in certain funds and accounts established by the <br />Indenture. <br /> <br />(d) Security for the Installment Payments. The obligation of the City to make <br />Installment Payments under the Installment Purchase Contract is a special obligation of the City <br />payable solely from and secured by a pledge of “Net Revenues.” <br /> <br />As of the date of this Bond Purchase Agreement, the City’s Installment Payment <br />obligation is secured by a pledge of Net Revenues on a parity with the City’s obligations under <br />the following contracts: <br /> <br />(a) Installment Purchase Contract, dated as of June 1, 2013, between the <br />City and the Authority (the “2013 Installment Purchase Agreement”). <br /> <br />(b) Installment Purchase Contract, dated as of May 1, 2015, between the City <br />and the Authority (the “2015 Installment Purchase Agreement”). <br /> <br />3. Public Offering. The Underwriter agrees to make a bona fide public offering of <br />all the Bonds initially at the public offering prices (or yields) set forth on Appendix A attached <br />hereto and incorporated herein by reference. Subsequent to the initial public offering, the <br />Underwriter reserves the right to change the public offering prices (or yields) as it deems <br />necessary in connection with the marketing of the Bonds, provided that the Underwriter shall not <br />change the interest rates set forth on Appendix A. The Bonds may be offered and sold to <br />certain dealers at prices lower than such initial public offering prices. <br /> <br />The Bonds will be subject to redemption as set forth on Appendix A. <br /> <br />4. Preliminary Official Statement; Delivery of Official Statement; Continuing <br />Disclosure Certificate. <br /> <br />(a) Preliminary Official Statement. The City has delivered or caused to be delivered <br />to the Underwriter prior to the execution of this Bond Purchase Agreement, copies of the <br />Preliminary Official Statement relating to the Bonds (the “Preliminary Official Statement”). <br />Such Preliminary Official Statement is the official statement deemed final by the City for <br />purposes of the Rule and approved for distribution by resolution of the governing board of the <br />Authority and the City. The City executed and delivered to the Underwriter a certification to <br />such effect in the form attached hereto as Appendix B. <br />8.C. - Page 224