Laserfiche WebLink
<br />f' f <br /> <br />of February 1, 2004 (the "Master Installment Purchase Agreement"), by and between the City <br />and the Authority, and the First Supplement to Master Installment Purchase Agreement, dated as <br />of February 1, 2004 (the "First Supplement" and together with the Master Installment Purchase <br />Agreement, the "Installment Purchase Agreement"), between the City and the Authority. The <br />issuance of the Bonds by the Authority was approved by a resolution adopted by the City <br />Council of the City on January 20,2004 (the "City Resolution"). <br /> <br />The Bonds are being issued to finance the prepayment of component installment <br />payments (the "1994 Installment Payments"} payable by the City under the Master Installment <br />Purchase Agreement, dated as of August 1, 1994 (the "Prior Master Installment Purchase <br />Agreement"), between the City and the Authority, and the First Supplement to Master <br />Installment Purchase Agreement, dated as of August 1, 1994, between the City and the Authority <br />(the "Prior Supplement") and pertaining to the City's water system (the "Water System"), and <br />the related redemption on April 1, 2004 (the "Redemption Date"}, of the remaining outstanding <br />Water Revenue Bonds, Series 1994 (payable Solely from Installment Payments Secured by <br />Water System Net Revenues) (the "Series 1994 Bonds") of the Authority issued upon the <br />security of the 1994 Installment Sale Payments (collectively, the prepayment of the 1994 <br />Installment Sale Payments and related refunding of the Series 1994 Bonds hereafter referred to <br />as the "2004 Refinancing"). In addition, the proceeds of the Bonds will purchase a reserve <br />surety bond for the debt service reserve fund, finance certain improvements to the Water System <br />of the City, and finance certain costs of issuance ofthe Bonds. <br /> <br />The 1994 Installment Payments and the Series 1994 Bonds will be defeased in <br />accordance with the terms of an Escrow Agreement, dated as of February 1, 2004 (the "Escrow <br />Agreernent"), among the Authority, the City and BNY Western Trust Company, as escrow bank <br />(the "Escrow Agent"). <br /> <br />Payment of the principal of and interest on the Bonds when due, will be insured by a <br />municipal bond insurance policy (the "Bond Insurance") to be issued by MBIA Insurance <br />Corporation (the "Bond Insurer") simultaneously with the delivery of the Bonds. <br />Simultaneously with the delivery of the Bonds, the Bond Insurer will also issue a reserve surety <br />bond (the "Reserve Account Surety Bond") in an amount equal to the Reserve Requirement (as <br />defined in the Indenture). <br /> <br />4. Authority's Obligation. It shall be a condition to the Authority's obligation to sell <br />and to deliver the Bonds to the Underwriter and to the obligation of the Underwriter to purchase, <br />to accept delivery of and to pay for the Bonds that the entire $20,110,000 principal amount of the <br />Bonds as authorized by the Authority Resolution shall be sold and delivered by the Authority <br />and accepted and paid for by the Underwriter at the Closing. The Underwriter may change the <br />offering prices of the Bonds from time to time at any time. The obligation of the Authority to <br />sell and deliver the Bonds to the Underwriter shall also be conditioned upon the delivery by <br />Orrick, Herrington & Sutcliffe LLP, Bond Counsel, of its approving legal opinion with respect to <br />the Bonds in substantially the form attached to the Official Statement. <br /> <br />5. Representations, Warranties and Agreements of the Authority. The Authority <br />represents and warrants to, and covenants and agrees with, the Underwriter that: <br /> <br />3 <br />