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if such moneys shall not have been so received, said notice shall be of no force and effect and the Trustee shall <br />not be required to redeem such Bonds. In the event that such notice of redemption contains such a condition and <br />such moneys are not so received, the redemption shall not be made, and the Trustee shall within a reasonable time <br />thereafter give notice in the manner in which the notice of redemption was given, that such moneys were not so <br />received. <br />Effect of Redemption. The Bonds so called for redemption being held by the Trustee, on the redemption <br />date designated in such notice, the Bonds so called for redemption shall become due and payable, interest on the <br />Bonds so called for redemption shall cease to accrue, said Bonds shall cease to be entitled to any benefit or security <br />under the Indenture, and the Owners of said Bonds shall have no rights in respect thereof except to receive payment <br />of the redemption price thereof. Failure by the Trustee to give notice pursuant to this paragraph to any one or <br />more of the Information Services or Securities Depositories, or the insufficiency of any such notice shall not affect <br />the sufficiency of the proceedings for redemption. Failure by the Trustee to mail notice of redemption pursuant to <br />this paragraph to any one or more of the respective Owners of any Bonds designated for redemption shall not <br />affect the proceedings for redemption with the Owners to whom such notice was mailed. <br />Parity Obligations <br />(a) The City may not create any Obligations the payments of which are senior or prior in right to the <br />payment by the City of Parity Obligations. <br />(b) Without regard to the conditions stated below in subsection (c), the City may at any time enter <br />into or create an obligation or commitment which is a Credit Provider Reimbursement Obligation or a Qualified <br />Swap Agreement provided the Obligation to which the Qualified Swap Agreement relates is a Parity Obligation. <br />(c) The City may at any time and from time to time issue or create Parity Obligations, provided: <br />(1) The City is not in default under the term of the Installment Purchase Agreement. <br />(2) (i) Net System Revenues, as certified by the City, for the most recent audited Fiscal Year <br />preceding the date of execution of the Parity Obligations, plus (ii) projected Net System Revenues (as <br />described below) are at least equal to 120% of Maximum Annual Debt Service. <br />The projections described in (2)(ii) above may take into account (A) increases in the charges made <br />for service from the Water System which have been adopted by the City prior to the date of issuance or <br />incurrence of such Parity Obligations, but which were not in effect for all or part of such preceding Fiscal <br />Year, and which are scheduled to be effective in the period of Debt Service shown for such Parity <br />Obligations, and (B) an allowance for estimated additional average annual Net System Revenues from <br />any additions or connections to or improvements or extensions of the Water System which have occurred <br />from the end of the Fiscal Year preceding the date of execution of the Parity Obligations. <br />(3) Notwithstanding the requirements described above, Parity Obligations may be issued or <br />incurred to refund outstanding Parity Obligations if, after giving effect to the application of the proceeds <br />thereof, total Debt Service will not be increased in any Fiscal Year in which Parity Obligations <br />(outstanding on the date of issuance or incurrence of such refunding Parity Obligations, but excluding <br />such refunding Parity Obligations) not being refunded are outstanding. <br />(4) The City may but shall not be required to fund a reserve fund or obtain a reserve fund <br />surety or instrument with respect to any Parity Obligations. If a reserve fund is funded for any Parity <br />Obligations or a qualified reserve fund surety or instrument is obtained with respect to any Parity <br />Obligations, such funded reserve fund or qualified reserve fund surety or instrument shall secure only the <br />related Parity Obligations and shall not support the Bonds or any other Parity Obligations. <br />M <br />