Laserfiche WebLink
<br />7e-~+ <br /> <br />SECURITY FOR THE BONDS <br /> <br />This section provides summaries of the provisions of the Indenture and the Installment <br />Purchase Contract. See "APPENDIX C" for a more complete summary of the Indenture and <br />the Installment Purchase Contract. <br /> <br />Revenues; Pledge of Revenues <br /> <br />Pledge of Revenues and Other Amounts. The Bonds are special limited obligations of <br />the Authority, payable (on a parity with the installments due under the 2005 Installment <br />Purchase Contract) solely from and secured by Revenues (as defined below) of the Authority <br />consisting primarily of Installment Payments received by the Authority from the City. In the <br />Indenture, the Authority transfers in trust, grants a security interest in and assigns to the <br />Trustee, for the benefit of the Owners from time to time of the Bonds, all of the Revenues and <br />all of the right, title and interest of the Authority in the Installment Purchase Contract (except for <br />certain rights to indemnification set forth therein). The Bonds are also secured by amounts on <br />deposit in the funds and accounts established under the Indenture, other than the Project Fund <br />and the Rebate Fund. <br /> <br />Definition of Revenues. "Revenues" are defined in the Indenture as follows: <br /> <br />(a) all amounts received by the Authority or the Trustee pursuant to or with <br />respect to the Installment Purchase Contract, including, without limiting the generality of <br />the foregoing, all of the Installment Payments (including both timely and delinquent <br />payments and any late charges), prepayments of Installment Payments, insurance <br />proceeds and condemnation proceeds deposited in the Insurance and Condemnation <br />Fund, and <br /> <br />(b) all interest, profits or other income derived from the investment of <br />amounts in any fund or account established pursuant to the Indenture. <br /> <br />Assignment to Trustee. The Authority, in the Indenture, transfers in trust, grants a <br />security interest in and assigns to the Trustee, for the benefit of the Owners from time to time of <br />the Bonds, all of the Revenues and all of the right, title and interest of the Authority in the <br />Installment Purchase Contract (except for certain rights to indemnification set forth therein). <br /> <br />The Trustee is entitled to all of the protections, limitations from liability and indemnities <br />provided it under the Indenture. The Trustee shall be entitled to and shall collect and receive all <br />of the Revenues, and any Revenues collected or received by the Authority shall be deemed to <br />be held, and to have been collected or received, by the Authority as the agent of the Trustee <br />and shall forthwith be paid by the Authority to the Trustee. The Trustee also shall be entitled to <br />and shall, subject to the provisions of the Indenture, take all steps, actions and proceedings <br />which the Trustee determines to be reasonably necessary in its judgment to enforce, either <br />jointly with the Authority or separately, all of the rights of the Authority and all of the obligations <br />of the City under the Installment Purchase Contract. <br /> <br />Installment Sale Payments; Application of Systems Revenues <br /> <br />Installment Sale Payments. Under the Installment Purchase Contract (and the 2005 <br />Installment Purchase Contract), the City will irrevocably pledge all of the Net Revenues to the <br />punctual payment of the Installment Payments, and the interest thereon. This pledge <br />constitutes a first lien on the Net Revenues and such other moneys for the payment of the <br />Installment Payments in accordance with the Installment Purchase Contract, on a parity with <br /> <br />9 <br />