04-28-14 Council Agenda & Packet

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Bonds, equal to but not exceeding the least of (i) the maximum annual debt service on the 2014 Bonds, (ii) 125% of average annual debt service on the 2014 Bonds, or (iii) 10 % of the proceeds of the 2014 Bonds, each calculated as of the date of issuance of the 2014 Bonds (the "Debt Service Reserve Requirement "). All money in the Reserve Fund shall be used and withdrawn by the District solely for the purpose of making deposits into the Bond Fund, in the event of any deficiency at any time in such fund, or for the purpose of paying the interest on or principal of or redemption premiums, if any, on the 2014 Bonds in the event that no other money is lawfully available therefor. Any amount in the Reserve Fund in excess of the Debt Service Reserve Requirement shall be withdrawn from the Reserve Fund and deposited in the Bond Fund. Money in the Reserve Fund shall also be available to make the final payments of interest and principal on the 2014 Bonds. (d) Funding of Reserve Fund with Credit Facility. (i) As an alternative to holding cash funds in the Reserve Fund, the President of the Commission, with the advice of the Commission's financial advisor and nationally recognized bond counsel, may satisfy all or any part of its obligation to maintain any amount in the Reserve Fund by depositing therein a Credit Facility (as defined herein) pursuant to a reimbursement agreement or similar instrument (the "Credit Facility Agreement") between or among the Credit Provider (as defined herein) and the City, the Commission and/or the District, provided that such deposit does not adversely affect any then existing rating on the 2014 Bonds. (ii) "Credit Facility" means as any letter of credit, revolving credit agreement, surety bond, insurance policy or other agreement or instrument issued by a Credit Provider (as defined herein). (iii) "Credit Provider" means the issuer of any Credit Facility and its successor in such capacity and their assigns. To qualify under this Resolution, the Credit Provider providing such Credit Facility shall be either: (1) an insurer whose long -term debt obligations are rated (at the time of issuance of such Credit Facility) in one of the three highest Rating Categories by the Rating Agency or Rating Agencies rating the 2014 Bonds; or (2) a bank or trust company whose long -term debt obligations are rated (at the time of issuance. of such Credit Facility) in one of the three highest Rating Categories by the Rating Agency or Rating Agencies rating the 2014 Bonds. (iv) "Rating Agency" or "Rating Agencies" means Standard & Poor's Corporation, Moody's Investors Service or Fitch Ratings, according to which of such rating agencies then rates a Bond; and 13