Agenda - Council - 07/12/2022 - Laserfiche WebLink

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Conditional Redemption.The Trustee shall give prompt notice of any properly tendered notice of rescission to the affected Bondholders.Any Series 2022 Bonds subject to Conditional Redemption where redemption has been rescinded within the timeframe provided above shall remain Outstanding, and the rescission shall not constitute an Event of Default. Further, in the case of a Conditional Redemption, the failure of the Company to make available funds sufficient to redeem all of the Series 2022 Bonds so called for redemption on or before the redemption date shall not constitute an Event of Default, and the Trustee shall give immediate notice to the Depository or the affected Bondholders that the redemption did not occur and that the Series 2022 Bonds called for redemption remain Outstanding. Any extraordinary costs incurred by the Trustee in connection with a rescission of a redemption shall be paid by the Company SECURITY FOR THE SERIES 2022 BONDS Special,Limited Obligations THE SERIES 2022 BONDS ARE SPECIAL,LIMITED OBLIGATIONS OF THE ISSUER AND WILL NOT CONSTITUTE A DEBT, LIABILITY, GENERAL OBLIGATION OR PLEDGE OF THE FULL FAITH AND CREDIT OF THE ISSUER, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF. THE ISSUANCE OF THE SERIES 2022 BONDS DOES NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE ISSUER OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF TO PAY THE SERIES 2022 BONDS FROM TAXES OR TO ANY APPROPRIATION THEREFOR. NO BONDHOLDER WILL HAVE THE RIGHT TO DEMAND PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2022 BONDS OUT OF ANY FUNDS OR FROM ANY SOURCES OF REVENUE OTHER THAN THOSE EXPRESSLY PLEDGED TO THE PAYMENT OF THE SERIES 2022 BONDS PURSUANT TO THE INDENTURE. Payments under the Loan Agreement; Assignment of Loan Agreement Monthly Loan Repayments from the Company are required under the Loan Agreement to be paid directly to the Trustee in amounts that will be sufficient, if paid promptly and in full, to pay when due all principal of and interest on the Series 2022 Bonds. Under the Indenture, the Issuer has pledged its interest in the Loan Agreement (including the payments payable thereunder to the Issuer by the Company, but excluding certain rights of the Issuer to payment of fees, expenses and indemnification) to the Trustee to secure the Series 2022 Bonds. See "APPENDIX F — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS—THE LOAN AGREEMENT"in this Official Statement. The Trustee is authorized to exercise the rights of the Issuer and enforce the obligations of the Company under the Loan Agreement. Payments are due from the Company on a full-recourse basis. Reserve Fund On the date of issuance of the Series 2022 Bonds,proceeds of the Series 2022 Bonds in an amount equal to the Reserve Fund Requirement (initially $[ ]*), will be deposited in the Reserve Fund created under the Indenture and held by the Trustee. Thereafter, unless needed to maintain the amount in the Reserve Fund at the Reserve Fund Requirement, investment income on amounts in the Reserve Fund will be deposited in the Bond Fund. Amounts in the Reserve Fund may be used by the Trustee to pay principal of,premium, if any, and interest on the Series 2022 Bonds in the event sums in the Bond Fund are insufficient for such purpose (if directed by the Majority Bondholder). Up to $[ ]* of the amount in the Reserve Fund, plus any interest earned thereon, is available for payment of the Series 2022B Bonds. Proceeds of the Series 2022A Bonds in the amount of$[ ]* shall be available to pay debt service on the Series 2022A Bonds in *Preliminary, subject to change. 14