05-26-09 Common Council Meeting Agenda & Packet

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Debt Service Reserve Account either (i) in a single payment, to be paid on the date of the issuance of the 2009 Bonds, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of the 2009 Bonds, with the first installment due and payable on the date of the issuance of the 2009 Bonds, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which the 2009 Bonds are issued. (h) To the extent that additional Parity Bonds are issued subsequent to the issuance of the 2009 Bonds, the additional amounts, if any, which are required to be paid into the Debt Service Reserve Account to satisfy the Reserve Requirement as a result of the issuance of such additional Parity Bonds shall, at the election of the Executive and Fiscal Officer with the advice of the City's financial advisor, be deposited into the Debt Service Reserve Account either (i) in a single payment, to be paid on the date of the issuance of such additional Parity Bonds, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of such additional Parity Bonds, with the first installment due and payable on the date of the issuance of such additional Parity Bonds, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which such additional Parity Bonds are issued. (i) Subject to Section 14(g) and Section 14(h) above, any deficiency in the balance maintained in the Debt Service Reserve Account shall be promptly made up from the next available Net Revenues after credits into the Bond and Interest Account. Any moneys in the Debt Service Reserve Account in excess of the Reserve Requirement may be used for the prepayment of installments of principal, together with interest due thereon, on the then outstanding Bonds which are then callable or prepayable, or for the purchase of outstanding Bonds or installments of principal of and interest on the Bonds at a price not exceeding par and accrued interest, or may be transferred to the Improvement Fund. (j) As an alternative to holding the Reserve Requirement in the Debt Service Reserve Account in cash funds, the City, with the advice of the Financial Advisor and Bond Counsel, may satisfy all or any part of its obligation to maintain an amount in the Debt Service Reserve Account equal to the Reserve Requirement by depositing a Credit Facility (as defined in the next sentence) in the Debt Service Reserve Account, provided that such deposit does not adversely affect any then existing rating on the Bonds. A "Credit Facility" is hereby defined as a letter of credit, liquidity facility, insurance policy or comparable instrument furnished by a bank, insurance company, financial institution or other entity pursuant to a reimbursement agreement or similar instrument between such entity and the City, for the purpose of satisfying in whole or in part the City's obligation to maintain the Reserve Requirement. To the extent that the Bonds are insured, and the Credit Facility to be deposited into the Debt Service Reserve Account is not being provided by the insurer of such Bonds, such insurance policy shall be subject to the insurer's prior written consent. (k) In the event a draw is made against the Credit Facility, the City shall repay the amount of the draw and related expenses incurred by the issuer(s) of the Credit Facility (the "Credit Facility Issuer") together with interest thereon at the rate specified in the Credit Facility and/or the related Credit Facility Agreement (as defined below). The repayment of the draw amount, related expenses and accrued interest (the "Credit Facility Costs") shall be paid from the -21-