55A - RESO - GAS TAX BONDS - Laserfiche WebLink

Home Browse Search

[Bond Insurance. The scheduled payment of principal of and interest on a portion, or all, of the Bonds (such maturities insured to be specified in the final Official Statement) when due will be guaranteed under a municipal bond insurance policy (the "Policy') to be issued concurrently with the delivery of the Bonds by (the "Insurer"). See `BOND INSURANCE" herein.] Reserve Account. A Reserve Account (the "Reserve Accounf') will be established under the Indenture for the Bonds in an amount equal to the Reserve Requirement. The "Reserve Requirement" is defined as an amount equal to, at any date of determination, the least of (i) ten percent (10%) of the original par amount of the Bonds, (ii) Maximum Annual Debt Service with respect to the Bonds, or (iii) 125% of average annual debt service on the Bonds; provided, further that the City may meet all or a portion of the Reserve Requirement by depositing a Qualified Reserve Account Credit Instrument meeting the requirements of the Indenture. See "SECURITY FOR THE BONDS — Reserve Account." The City will satisfy the Reserve Requirement with respect to the Bonds by depositing the Reserve Policy in the Reserve Account in accordance with the Indenture. "Reserve Policy" means the municipal bond debt service reserve insurance policy relating to the Bonds issued by the Insurer. Issuance of Additional Obligations. The City may issue or incur additional obligations and bonds on a parity with the Bonds for the full or partial refunding of the Bonds, provided that there is a savings in debt service as a result of the issuance of such refunding bonds. Payment. Principal of the Bonds will be payable in each of the years and in the amounts set forth on the inside cover page hereof at the office of the Trustee. Interest on the Bonds will be paid by check or draft of the Trustee mailed by first class mail to the person entitled thereto. See "THE BONDS — General Provisions." Initially, interest on and principal and premium, if any, of the Bonds will be payable when due by wire transfer of the Trustee to the Depository DTC which will in turn remit such interest, principal and premium, if any, to DTC Participants (as defined herein), which will in turn remit such interest, principal and premium, if any, to Beneficial Owners (as defined herein) of the Bonds. See "TILE BONDS - Book -Entry Only System" and "APPENDIX E — DTC AND THE BOOK -ENTRY ONLY SYSTEM." Redemption. The Bonds are subject to optional redemption prior to their stated maturity dates. See "THE BONDS — Redemption." Risks of Investment. The Bonds are payable only from Gas Tax Revenues. For a discussion of some of the risks associated with the purchase of the Bonds, see `BOND OWNERS' RISKS." Neither the Bonds nor the obligation of the City to pay principal of or interest thereon constitutes a debt of the City, the County, the State of California or any of its political subdivisions within the meaning of any constitutional limitation on indebtedness, or a pledge of the full faith and credit of the City or the County. The Bonds are secured solely by the pledge of Gas Tax Revenues and certain funds and accounts held under the Indenture. REFUNDING PLAN The 2007 Certificates were issued by the Authority and executed and delivered for the purpose of financing certain local street improvements within the City and are currently outstanding in the principal amount of $ . The 2007 Certificates and the 2007 Installment Sale Agreement, together with the pledge of Gas Tax Revenues, were judicially validated upon the delivery of a default judgment rendered on November 16, 2007, in the Superior Court of the County of Orange in the action entitled City of Santa Ana and the Santa Ana Financing Authority v. All Persons Interested in the Matter, Case No. 07CC09172. Proceeds of the Bonds, together with certain funds made available through the prepayment of the outstanding 2007 Certificates, will be deposited with U.S. Bank National Association, as escrow agent (the `Escrow Bank"), pursuant to an Escrow Deposit and Trust Agreement, dated as of December 1, 2019, by and 55.4-89