11-28-11 Council Agenda & Packet

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therein, and repayment of any Credit Facility Costs shall be made prior to replenishment of any such cash amounts. (o) If, in addition to the Credit Facility in the Debt Service Reserve Account or any Subaccount, any other reserve account substitute instrument ("Additional Credit Facility") is provided, drawings under the Credit Facility and any such Additional Credit Facility, and repayment of Credit Facility Costs and reimbursement of amounts due under the Additional Credit Facility, shall be made on a pro-rata basis (calculated by reference to the maximum amounts available thereunder) after applying all available cash therein and prior to replenishment of any such cash draws, respectively. (p) Inasmuch as the Reserve Requirement pertaining to the 1997 Bonds, the 2000 Bonds, the 2002 Bonds and the 2006 Bonds is currently being satisfied by the 2002 Reserve Insurance Policy and 2006 Reserve Insurance Policy, the City with the advice of the City's financial advisor and nationally recognized bond counsel,, may satisfy the Reserve Requirement pertaining to the 2012 Bonds of any Series as follows: (i) by amending the terms of either the 2002 Reserve Insurance Policy or the 2006 Reserve Insurance Policy to expand the scope of either the 2002 Reserve Insurance Policy or the 2006 Reserve Insurance Policy to include the 2012 Bonds of such Series, and by adjusting the Policy Limit of the 2002 Reserve Insurance Policy or the 2006 Reserve Insurance Policy accordingly; or (ii) by obtaining a separate Additional Credit Facility covering the Reserve Requirement attributable to the 2012 Bonds of such Series; or (iii) by funding the Reserve Requirement attributable to the 2012 Bonds of such Series in cash funds, either (i) in a single payment, to be paid on the date of the issuance of the 2012 Bonds of such Series, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of the 2012 Bonds of such Series, with the first installment due and payable on the date of the issuance of the 2012 Bonds of such Series, and the remaining installments payable on the Iast day of each calendar month, commencing on the last day of the month in which the 2012 Bonds of such Series are issued. (q) The City acknowledges that: (i) at the time that the 2009A Bonds were issued, the City, pursuant to the 2009 Ordinance, established within the Debt Service Reserve Account a subaccount for the 2009A Bonds (the "2009A Subaccount"); (ii) such 2009A Subaccount constitutes the margin for safety and as protection against default in the payment of principal of and interest on the 2009A Bonds; (iii) the moneys in such 2009A Subaccount shall be used to pay current principal and interest on the 2009A Bonds, to the extent that moneys in the Bond and Interest Account are insufficient for that purpose; (iv); the 2009A Bonds were sold to the Indiana Finance Authority pursuant to its Drinking Water Revolving Loan Program (the "SRF Program") and pursuant to the 2009 Ordinance the "Reserve Requirement" for the 2009A Bonds for which the 2009A Subaccount was establish means the maximum annual debt service - 22 -