11-30-10 Special Council Meeting Agenda & Packet

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irrevocably pledge the COIT Revenues for the payment of the principal of and 'interest on the Bonds (the "COIT Pledge" and collectively with the PSCDA Pledge, the "Pledge "). Section III. The foregoing Pledge shall continue irrevocably during the period in which the Bonds remain outstanding. The provisions hereof shall be construed to create a trust in the PSCDA Revenues and the COIT Revenues described herein and the provisions hereof are made in accordance with Indiana Code 5- 1 -14 -4. This Ordinance shall not be repealed or amended in any manner which would serve to adversely affect the Pledge made herein by the Common Council on behalf of the City. The Mayor, Controller, and the Clerk are hereby authorized to execute such documents as may be necessary in connection with the issuance of the Bonds to evidence the Pledge. The Bonds shall not constitute a corporate obligation or indebtedness of the City but shall constitute an obligation of the District. Section IV. Only in the event the PSCDA Revenues are not sufficient to pay the principal of and interest on the Bonds, the COIT Revenues shall then be used to pay the principal of and interest on the Bonds. The COIT Pledge shall be on a parity with any outstanding indebtedness or lease rental obligations payable from such COIT Revenues (the "Prior Obligations "). Section V. The City reserves the right to enter into additional leases or authorize and issue bonds, payable out of its COIT Revenues, ranking on a parity with the amounts payable under the Prior Obligations and the COIT Pledge described herein, for the purpose of financing the cost of additional projects (the "Parity Obligations "). The authorization and issuance of Parity Obligations shall be subject to the following conditions precedent: (a) Rental payments under all Ieases and the principal of and interest on all bonds, which are, respectively, in accordance with their terms, payable from COLT Revenues shall have been paid in accordance with their terms. (b) All required deposits into the COIT Obligations Fund and the COIT Reserve Fund shall have been made in accordance with the provisions of this Ordinance and the terms of the Prior Obligations. (c) Either: (1) the COIT Revenues distributed to the City in the fiscal year immediately preceding the entering into or issuance of any such Parity Obligations shall be not less than one hundred thirty-five percent (135 %) of the maximum annual interest and principal requirements of all the then outstanding obligations, including without limitation the Prior Obligations, payable from amounts that the City receives from COIT Revenues and the additional Parity Obligations; or (2) the COIT Revenues distributed to the City pursuant to the Act for the first full fiscal year immediately succeeding the issuance of any such Parity Obligations shall be projected by a certified public accountant to be at least equal to one hundred thirty -five percent (135 %) of the total of the maximum annual rentals or interest and principal requirements of all the then outstanding obligations including without limitation the Prior Obligations, payable from amounts that the City receives from COIT Revenues and the Parity Obligations proposed to be issued. 5.1 BDDBOI 6401968v1