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<br />13 <br /> <br />All money in the Payment Fund shall be used and withdrawn by the Trustee in <br />accordance with the Indenture. <br /> <br />Section 4.02. No Reserve Fund. <br /> <br />The City is not causing a debt service reserve fund to be established for the Installment <br />Payments or the Series 2024 Bonds. <br /> <br />Section 4.03. Parity Obligations. <br /> <br />(a) So long as any Installment Payments are Outstanding, the City shall not issue or <br />incur any obligations payable from Net Revenues senior or superior to the Installment <br />Payments. The City may at any time issue Parity Obligations payable from Net Revenues on a <br />parity with the Installment Payments to provide financing for the Enterprise in such principal <br />amount as shall be determined by the City. The City may issue or incur any such Parity <br />Obligations subject to the following specific conditions which are hereby made conditions <br />precedent to the issuance and delivery of such Parity Obligations: <br /> <br />(1) No Event of Default shall have occurred and be continuing; and <br /> <br />(2) The Net Revenues, calculated in accordance with Generally Accepted <br />Accounting Principles, either (i) as shown by the books of the City for the latest Fiscal <br />Year, as verified by a certificate of a Finance Officer, or (ii) as shown by the books of the <br />City for any more recent twelve (12) month period selected by the City, as verified by a <br />certificate or opinion of an Independent Certified Public Accountant employed by the <br />City, plus in either case (at the option of the City) the Additional Revenues, shall be at <br />least equal to one hundred twenty percent (120%) of the amount of Maximum Annual <br />Debt Service. <br /> <br />The provisions of subsection (2) of this Section shall not apply to any Parity Obligations <br />if (i) all of the proceeds of which (other than proceeds applied to pay costs of issuing such Parity <br />Obligations or fund a debt service reserve fund) shall be deposited in an irrevocable escrow <br />held in cash or invested in Federal Securities for the purpose of paying the principal of and <br />interest and premium (if any) on any Outstanding Bonds or on any outstanding Parity <br />Obligations, (ii) at the time of the incurring of such refunding Parity Obligations, the City certifies <br />in writing that maximum annual debt service on the refunding Parity Obligations will not exceed <br />Maximum Annual Debt Service on the Outstanding Bonds or on any outstanding Parity <br />Obligations, and (iii) the final maturity of the refunding Parity Obligations is not later than the <br />final maturity of the refunded Bonds or Parity Obligations. <br /> <br />The City may at any time execute contracts or issue bonds or other indebtedness <br />payable from Net Revenues or the Revenue Fund payable on a subordinated basis to the <br />payment of the Installment Payments. <br /> <br />(b) In order to maintain the parity relationship of the Installment Payments to all <br />Parity Obligations permitted hereunder, the City covenants that all payments in the nature of <br />principal and interest with respect to any Parity Obligations, except with respect to <br />Governmental Loans, will be structured to occur semi-annually on the Installment Payment <br />Dates, and in each year as such payments are due with respect to the Installment Payments, <br />and to otherwise structure the terms of such Parity Obligations to ensure that they are in all <br />8.A. - Page 181 of 255 <br />809