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Item PFA-3 - Water Revenue Bonds
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Item PFA-3 - Water Revenue Bonds
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Last modified
5/30/2024 4:32:57 PM
Creation date
5/29/2024 6:14:44 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
PFA-3
Date
6/4/2024
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(c) The interest to accrue on the unpaid balance of such principal amount shall be paid <br />at least five days prior to the date such interest is payable as specified in a Supplement or at such <br />other earlier time or times as specified in such Supplement, and shall be paid by the City as and <br />constitute interest paid on the principal amount of the City's obligations thereunder. Interest shall <br />be payable in an amount not exceeding the Maximum Rate, at such intervals and according to such <br />interest rate formulas as shall be specified in a Supplement or by reference to any Issuing <br />Instrument to which such Supplement relates, and shall be payable with such frequency as shall <br />be specified therein. <br />SECTION 4.02. Installment Payments, Reserve Fund Payments. <br />(a) The City may, subject to any rights of prepayment provided for in a Supplement, <br />pay to the Authority, solely from Net System Revenues and from no other sources, the Purchase <br />Price in installment payments over a period not to exceed the maximum period permitted by law, <br />all as specified in a Supplement. <br />In the event that a Trustee notifies the City that the amount on deposit in a Reserve Fund <br />or Reserve Account is less than the Reserve Requirement, the City shall deposit or cause to be <br />deposited, solely from Net System Revenues, in such Reserve Fund or Reserve Account such <br />amounts on a monthly basis as are necessary to increase the amount on deposit therein to the <br />Reserve Requirement in the ensuing six months. <br />(b) The obligation of the City to make the Installment Payments solely from Net <br />System Revenues is absolute and unconditional, and until such time as the Purchase Price shall <br />have been paid in full (or provision for the payment thereof shall have been made pursuant to <br />Article IX), the City will not discontinue or suspend any Installment Payments required to be made <br />by it under this section when due, whether or not the Project or any Component thereof is operating <br />or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or <br />terminated in whole or in part, and such Installment Payments shall not be subject to reduction <br />whether by offset or otherwise and shall not be conditioned upon the performance or <br />nonperformance by any party of any agreement for any cause whatsoever. <br />ARTICLE V <br />SYSTEM REVENUES <br />SECTION 5.01. Commitment of the Net System Revenues. All Parity Obligations, <br />including Parity Installment Payment Obligations, shall be secured by a prior lien on and pledge <br />of Net System Revenues, and within such lien priority, such Parity Obligations shall be of equal <br />rank without preference, priority or distinction of any Parity Obligations over any other Parity <br />Obligations. The City does hereby grant such prior lien on and pledge of Net System Revenues to <br />secure Parity Obligations. Such lien and pledge shall constitute a first lien on Net System <br />Revenues. This Installment Purchase Agreement constitutes a Parity Obligation under the 2014 <br />Master Installment Agreement. The City hereby represents and states that, except as otherwise <br />stated in the 2014 Master Installment Agreement, it has not previously granted any lien or charge <br />on any of the Net System Revenues except as may be stated in a Supplement; provided, however, <br />16 <br />55394.00068\42092413.3 <br />
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