Res13 15263 - Laserfiche WebLink

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such Parity Obligations and to make the reserve fund deposit required pursuant to subsection (3) of this Section) shall be deposited in an irrevocable escrow held in cash or invested in Federal Securities for the purpose of paying the principal of and interest and premium (if any) on any Outstanding Bonds or on any outstanding Parity Obligations, (ii) at the time of the incurring of such Parity Obligations, the City certifies in writing that maximum annual debt service on the refunding Parity Obligations will not exceed Maximum Annual Debt Service on the Outstanding Bonds, and (iii) the final maturity of the refunding Parity Obligations is not later than the final maturity of the refunded Bonds. The City may at any time execute contracts or issue bonds or other indebtedness payable from Net Revenues or the Revenue Fund payable on a subordinated basis to the payment of the Installment Payments. (b) In order to maintain the parity relationship of the Installment Payments to all Parity Obligations permitted hereunder, the City covenants that all payments in the nature of principal and interest or reserve account replenishrnent with respect to any Parity Obligations, except with respect to �Governmental Loans, will be structured to occur semi-annually on the Installment Payment Dates and in each year as such payments are due with respect to the Installment Payments, and reserve account replenishment with respect to any Parity Obligations, except with respect to Governmental Loans, will be structured to occur monthly, and to otherwise structure the terms of such Parity Obligations to ensure that they are in all respects payable on a parity wifh the Installment Payments and not prior thereto; provided that the City shall not make a payment on such Governmental Loan to the extent it would have the effect of causing the City to fail to pay Installment Payments on a timely basis. In such event, the City shall make Installment Payments and payments on such Governmental Loan on a pro rata basis. ARTICLE V REPRESENTATIONS, COVENANTS AND WARRANTIES Section 5.01. Compliance with Installment Purchase Contract The City will punctually pay the Installment Payments in strict conformity with the terms hereof, and will faithfully observe and perform all the agreements, conditions, covenants and terms contained herein required to be observed and performed by it, and will not terminate this Installment Purchase Contract for any cause whatsoever, including, without limiting the generality of the foregoing, any acts or circumstances that may constitute failure of consideration, destruction of or damage to the Project, condemnation of the Project by any governmental entity, commercial frustration of purpose, any change in the tax or other laws of the United States of America or of the State of California or any political subdivision of either or any failure of the Authority to observe or perform any agreement, condition, covenant or term required to be observed and performed by it contained herein, whether express or implied,or any duty, liability or obligation arising out of or connected with this Installment Purchase Contract. The City will faithfully observe and perform all the agreements, conditions, covenants and terms contained in the indenture required to be observed and performed by it, and 12 338529_1.DOC