Res13 15263 - Laserfiche WebLink

Browse Search

to become includable in gross income for federal income tax purposes, all as set�forth in a Certificate of the Authority. In lieu of making the Reserve Fund deposits in compliance herewith and Section 3.02, or in replacement of moneys then�on deposit in the Reserve Fund, the Authority may deliver to the Trustee an irrevocable letter of credit issued by a financial institution having unsecured debt obligations at the time of delivery of such letter of credit rated not less�than the current rating categories of Moody's and S&P on the Series 2013 Bonds, in an amount, together with moneys, � or surety bonds or insurance policies (as described below) on deposit in the Reserve Fund, equal to the Reserve Requirement. Such letter of credit shall have an original term of no less than three (3) years or, if less, the final maturity of the Series 2013 Bonds and such letter of credit shall provide by its terms that it may be drawn upon as provided herein. At least one year prior to the stated expiration of such letter of credit, the Authority shall either(i) deliver a replacement letter of credit, (ii) deliver an extension of the letter of credit for at least an additional yeaz or,if less, the final maturity af the Series 2013 Bonds, or (iii) deliver to the Trustee a surety bond or an insurance policy satisfying the requirements set forth below. Upon delivery of such replacement letter of credit, extended letter of credit, or surety bond or insurance policy, tk�e Trastee shall deliver the then-effective letter of credit to or upon the written order of the Authority. If the Authority shall fail to deposit a replacement letter of credit, extended letter of credit or surety bond or insurance policy with the Trustee, the Authority shall immediately commence to make monthly deposits with the Trustee so that an amount equal to the Reserve Requirement will be on deposit in the Reserve Fund no later than the stated expiration date of the letter of credit. If an amount equal to the Reserve Requirement as of the date following the expiration of the letter of credit is not on deposit in the Reserve Fund one.week prior to the stated expiration date of the letter of credit, the Trustee shall draw on the letter of credit to fund the deficiency resulting therefrom in the Reserve Fund. Additionally, the Authority may, with an opinion of nationally recognized bond counsel tliat such delivery complies with the provisions hereof, deliver to the Trustee a surety bond or an insurance policy securing an amount, together with moneys or letters of credit on deposit in the Reserve Fund, equal to the Reserve Requirement. Such surety bond or insurance policy shall be issued by an insurance company whose unsecured debt obligations (or for which obligations secured by such insurance company's insurance policies) at the time of delivery of such surety bond or insurance policy aze rated not less than the current rating category of Moody's and S&P on the Series 2013 Bonds. Such surety bond or insurance policy shall have a term of no less than the final maturity of the Series 2013 Bonds. In the event that such surety bond or insurance policy for any reason lapses or expires, the Authority shall immediately implement clause (i) or (iii) of the preceding paragraph or make the required deposits to the Reserve Fund. The Trustee shall, on a pro rata basis with respect to the portion of the Reserve Fund held in cash and amounts held in the form of letters of credit, surety bonds and insurance policies (calculated by reference to the maximum amounts of such letters of credit, surety bonds and insurance policies and the amount of the initial deposit of such cash), draw under each letter of credit, surety bond or insurance policy; in a timely manner and pursuant to the terms of such letter of credit, surety bond or insurance policy to the extent necessary in order to obtain sufficient funds on or prior to the date such funds are needed as required herein. In the event that -22- 338471 1.DOC