Laserfiche WebLink
the Council on June 23, 1 997 (the "1 997 Ordinance"), now outstanding in the amount of <br /> $2,140,000. <br /> The Council finds that on or about May 28, 2002, the Council adopted Ordinance No. <br /> 9328-02 (the "2002 Supplemental Ordinance"), which supplemented and amended the 2002 <br /> Ordinance, the 2000 Ordinance and the 1997 Ordinance to permit the City to substitute an <br /> insurance policy to provide funds for the Debt Service Reserve Account thereby freeing monies <br /> currently held in the Debt Service Reserve Account for use by and improvement of the <br /> waterworks. The 2002 Supplemental Ordinance, together with the 2009 Ordinance, the 2005 <br /> Ordinance, the 2002 Ordinance, the 2000 Ordinance and the 1997 Ordinance are sometimes <br /> collectively referred to herein as the "Prior Ordinances". <br /> The Council now finds that pursuant to the 2002 Supplemental Ordinance, the City <br /> entered into an Insurance Agreement with Financial Security Assurance Inc. ("FSA"), dated <br /> June 27, 2002 (the "FSA Insurance Agreement"), and pursuant to the FSA Insurance Agreement, <br /> FSA issued its Municipal Bond Debt Service Reserve Insurance Policy No. 29146-R, effective <br /> June 27, 2002 (the "2002 Reserve Insurance Policy"). <br /> The 2002 Reserve Insurance Policy covers principal and interest payments on the 1997 <br /> Bonds, 2000 Bonds and 2002 Bonds, up to the policy limit stated in the 2002 Reserve Insurance <br /> Policy. The initial policy limit of the 2002 Reserve Insurance Policy was set at $2,332,703. <br /> The Council now finds that pursuant to the 2005 Ordinance, the City entered into an <br /> Insurance Agreement with MBIA Insurance Corporation ("MBIA"), dated June 6, 2006 (the <br /> "MBIA Insurance Agreement"), and pursuant to the MBIA Insurance Agreement, MBIA issued <br /> its Debt Service Reserve Surety Bond No. 48026(2), effective June 6, 2006 (the "2006 Reserve <br /> Insurance Policy"). <br /> The 2006 Reserve Insurance Policy covers principal and interest payments on the 2006 <br /> Bonds, up to the policy limit stated in the 2006 Reserve Insurance Policy. The initial policy limit <br /> of the 2006 Reserve Insurance Policy was set at $365,826. <br /> The Prior Bonds constitute a first charge upon the Net Revenues (as hereinafter defined). <br /> The Prior Ordinances provide that the City may authorize and issue additional bonds <br /> payable out of the Net Revenues ranking on parity with the Parity Bonds (as hereinafter defined) <br /> for the purpose of financing the cost of future additions, extensions and improvements to the <br /> works subject to the provisions of the Prior Ordinances. The conditions precedent to the <br /> issuance of additional parity bonds set forth in the Prior Ordinances, as described above, have <br /> been satisfied, subject to approval by the State of Indiana(the "State"). <br /> The City desires to authorize the issuance of a bond anticipation note or notes hereunder, <br /> if necessary, payable from the proceeds of the revenue bonds authorized herein (the "BANs"), <br /> and to authorize the refunding of said BANs, if issued. <br /> The Council now finds that all conditions precedent to the adoption of an ordinance <br /> authorizing the issuance of revenue bonds and BANs have been complied with in accordance <br /> with the applicable provisions of the Act. <br /> - 3 - <br />