Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
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Determination <strong>and</strong> Notice <strong>of</strong> Weekly Rate; Payment <strong>of</strong> Interest<br />
The interest rate for a Series <strong>of</strong> 2010A Bonds will be the rate <strong>of</strong> interest per annum determined by the<br />
applicable Remarketing Agent on <strong>and</strong> as <strong>of</strong> each Tuesday (the “Rate Determination Date”) or, if such day is not a<br />
Business Day, then the Business Day next preceding such Tuesday, as the minimum rate <strong>of</strong> interest which, in the<br />
opinion <strong>of</strong> the Remarketing Agent under then-existing market conditions, would result in the sale <strong>of</strong> such Series <strong>of</strong><br />
2010A Bonds on the Rate Determination Date at a price equal to 100% <strong>of</strong> the principal amount there<strong>of</strong>, plus accrued<br />
<strong>and</strong> unpaid interest, if any; provided that in no event shall the Weekly Rate at any time exceed 12% per annum.<br />
Each Remarketing Agent will establish the applicable Weekly Rate by 4:00 p.m., New York <strong>City</strong> time, on<br />
the applicable Rate Determination Date. Each Weekly Rate will be in effect (i) initially, from <strong>and</strong> including the date<br />
<strong>of</strong> issuance <strong>of</strong> the 2010A Bonds to <strong>and</strong> including the following Tuesday, <strong>and</strong> (ii) thereafter, from <strong>and</strong> including each<br />
Wednesday to <strong>and</strong> including the following Tuesday, without regard to holidays. The Remarketing Agent for the<br />
applicable Series <strong>of</strong> 2010A Bonds will make the Weekly Rate available (i) after 4:00 p.m., New York <strong>City</strong> time, on<br />
the Rate Determination Date by telephone to any Owner or Notice Party requesting such rate, <strong>and</strong> (ii) by Electronic<br />
Means to the Paying Agent not later than 1:00 p.m., New York <strong>City</strong> time, on the second Business Day immediately<br />
succeeding the Rate Determination Date. The Paying Agent will give notice <strong>of</strong> such interest rates to the Trustee by<br />
Electronic Means not later than 4:00 p.m., New York <strong>City</strong> time, on the second Business Day immediately<br />
succeeding the Rate Determination Date.<br />
Alternate Rates<br />
If (i) the applicable Remarketing Agent fails or is unable to determine the interest rate for the related Series<br />
<strong>of</strong> 2010A Bonds, or (ii) the method by which such Remarketing Agent determines the interest rate with respect to<br />
such Series <strong>of</strong> 2010A Bonds is held to be unenforceable by a court <strong>of</strong> law <strong>of</strong> competent jurisdiction, then the<br />
following provisions will apply <strong>and</strong> will continue to apply until such time as such Remarketing Agent again makes<br />
such determination. In the case <strong>of</strong> clause (ii) above, such Remarketing Agent will again make the determinations at<br />
such time as there is delivered to such Remarketing Agent <strong>and</strong> the <strong>Commission</strong> an Opinion <strong>of</strong> Bond Counsel to the<br />
effect that there are no longer any legal prohibitions against such determinations. During the times described above,<br />
such Series <strong>of</strong> 2010A Bonds will bear interest during each subsequent Interest Period at the SIFMA Municipal Swap<br />
Index in effect on the first day <strong>of</strong> such Interest Period from <strong>and</strong> after the date either <strong>of</strong> the events described in<br />
clauses (i) or (ii) first become applicable to such Series <strong>of</strong> 2010A Bonds until such time as events described in<br />
clauses (i) <strong>and</strong> (ii) are no longer applicable to such Series <strong>of</strong> 2010A Bonds.<br />
Changes from Weekly Mode<br />
Subject to the provisions <strong>of</strong> the 1991 Master Resolution, the <strong>Commission</strong> may change a Series <strong>of</strong> 2010A<br />
Bonds from the Weekly Mode to another Mode as set forth in APPENDIX C–“SUMMARY OF CERTAIN PROVISIONS OF<br />
THE 1991 MASTER RESOLUTION.”<br />
Failure to Satisfy Conditions Precedent to a Mode Change<br />
If the conditions described in the 1991 Master Resolution are not satisfied by the applicable Mode Change<br />
Date, then the New Mode for such Series <strong>of</strong> 2010A Bonds will not take effect <strong>and</strong> such Series <strong>of</strong> 2010A Bonds will<br />
remain in the Weekly Mode, with the interest rates established in accordance with the applicable provisions <strong>of</strong> the<br />
1991 Master Resolution on <strong>and</strong> as <strong>of</strong> the failed Mode Change Date. See “–Determination <strong>and</strong> Notice <strong>of</strong> Weekly<br />
Rate; Payment <strong>of</strong> Interest.”<br />
Redemption Provisions<br />
Optional Redemption<br />
The 2010A Bonds in a Weekly Mode are subject to redemption prior to their respective stated maturity<br />
dates, at the option <strong>of</strong> the <strong>Commission</strong>, from any source <strong>of</strong> available funds (other than m<strong>and</strong>atory sinking fund<br />
payments) as a whole or in part, in Authorized Denominations (<strong>and</strong> by lot if less than all <strong>of</strong> a Series <strong>of</strong> 2010A Bonds<br />
are then called for redemption) on any Business Day at a redemption price equal to the principal amount <strong>of</strong> such<br />
2010A Bonds called for redemption, together with accrued interest to the date fixed for redemption, without<br />
premium.<br />
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