AgdaPkt 2013-05-20 Closed Cancelled and Special

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7.A. - Page 37 Attachment 6 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 that such delivery complies with the provisions of the Indenture, 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 are rated in the highest rating category of Moody's and S&P. Such surety bond or insurance policy shall have a term of no less than the final maturity of the Bonds. In the event that such surety bond or insurance policy for any reason lapses or expires, the Authority shall immediately deliver a replacement surety bond, insurance policy or letter of credit meeting the requirements of the Indenture for deposit in the Reserve Fund. Special Obligation;Obligations Absolute Special, Limited Obligation. The City's obligation to pay the Installment Payments (on a parity with the 2007 Installment Payments, the 2006 Installment Payments and any other Parity Obligations) is a special obligation of the City limited solely to the Net Revenues. Under no circumstances is the City required to advance moneys derived from any source of income other than the Net Revenues and other sources specifically identified in the Installment Purchase Contract for the payment of the Installment Payments and such other amounts. No other funds or property of the City are liable for the payment of the Installment Payments and any other amounts coming due and payable under the Installment Purchase Contract. Absolute and Unconditional Obligations. The obligation of the City to make the Installment Payments and to pay the interest thereon is absolute and unconditional, and until such time as all Installment Payments and the interest thereon shall have been fully paid and the Bonds are no longer Outstanding, the City will not, under any circumstances, discontinue, abate or suspend any Installment Payments or any interest thereon required to be made by it under the Installment Purchase contract when due, whether or not the Enterprise or any part thereof is operating or operable or has been completed, or whether or not the Enterprise is condemned, damaged, destroyed or seized or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and such payments shall not be subject to reduction whether by offset, counterclaim, defense, recoupment, abatement, suspension, deferment or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement or covenant contained herein for any cause whatsoever. Rate Covenants; Collection of Rates and Charges Sum Sufficient. The City will fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Enterprise during each Fiscal Year,which are at least sufficient, after making allowances for contingencies and error in the estimates, to yield Gross Revenues sufficient to pay the following amounts in the following order of priority: (a) All Maintenance and Operation Costs of the Enterprise; (b) The Installment Payments and interest thereon and all payments (including payments of interest and under reimbursement agreements) with respect to related Parity Obligations (including the 2007 Installment Payments and the 2006 Installment Payments) as they become due and payable; -14-