05-26-09 Common Council Meeting Agenda & Packet

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All or a portion of the 2009 Bonds may be aggregated into and issued as one or more term bonds. The term bonds will be subject to mandatory sinking fund redemption with sinking fund payments and final maturities corresponding to the serial maturities described above. Sinking fund payments shall be applied to retire a portion of the term bonds as though it were a redemption of serial bonds and, if more than one term bond of any maturity is outstanding, redemption of such maturity shall be made. by lot. Sinking fund redemption payments shall be made in a principal amount equal to such serial maturities, plus accrued interest to the redemption date, but without premium or penalty. For all purposes of this Ordinance, such mandatory sinking fund redemption payments shall be deemed to be required payments of principal which mature on the date of such sinking fund payments. Appropriate changes shall be made in the definitive form of 2009 Bonds, relative to the form of 2009 Bonds contained in this Ordinance, to reflect any mandatory sinking fund redemption terms. (b) The City shall issue, if necessary, BANS for the purpose of procuring interim financing for the Project. Any such issuance shall be in accord with the provisions of Section 25 of this Ordinance. (c) Notwithstanding anything contained herein, the City may accept any other forms of financial assistance, as and if available, from the SRF Program (including without limitation any forgivable loans, grants or other assistance whether available as an alternative to any 2009 Bond or BAN related provision otherwise provided for herein or as a supplement or addition thereto). If required by the SRF Program to be eligible for such financial assistance, one or more of the series of the 2009 Bonds issued hereunder may issued on a basis such that the payment of the principal of or interest on (or both) such series of 2009 Bonds is junior and subordinate to the payment of the principal of and interest on other series of 2009 Bonds issued hereunder (and/or any other revenue bonds secured by a pledge of Net Revenues, whether now outstanding or hereafter issued), all as provided by the terms of such series of 2009 Bonds as modified pursuant to this authorization. Such financial assistance, if any, shall be as provided in the Financial Assistance Agreement and the 2009 Bonds of each series of 2009 Bonds issued hereunder (including any modification made pursuant to the authorization in this paragraph to the form of the 2009 Bonds otherwise contained herein). SECTION 3. Pledge of Net Revenues; Payment of Principal and Interest. The 2009 Bonds, and any bonds ranking on a parity therewith, including the Prior Bonds, as to principal, premium, if any, and interest, shall be payable solely from and are secured by an irrevocable pledge of and shall constitute a charge upon all the Net Revenues (as defined in the following sentence) of the works. The term "Net Revenues," as used herein, shall be defined as the gross revenues of the works after deduction only for the payment of the reasonable expenses of operation, repair and maintenance of the works, and which reasonable expenses of operation, repair and maintenance specifically do not include any rates or charges in lieu of taxes made and collected by the works and transferred to the City in accordance with the Act (the "PILOT Payment"). The City specifically subordinates its right to receive any PILOT Payment to the rights of the holders of the 2009 Bonds, and any Parity Bonds, including the Prior Bonds, to receive payment of the principal, premium, if any, and interest, payable on such bonds. The provisions of this Section 3 amend and supersede the corresponding provisions of Section 3 of the 1997 Ordinance, Section 3 of the 2000 Ordinance, Section 3 of the 2002 Ordinance and Section 3 of the 2005 Ordinance as to the definition of "Net Revenues" and the subordination by -5-