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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Moneys in the respective accounts in the Reserve Fund will be applied to pay <strong>and</strong> secure the payment <strong>of</strong> such Bonds as<br />
provided in the 1991 Master Resolution or in the Supplemental Resolutions with respect thereto. Moneys in an account<br />
in the Reserve Fund may also be applied to pay or reimburse a Credit Provider for Repayment Obligations to the extent<br />
provided in the 1991 Master Resolution or in the Supplemental Resolutions with respect thereto.<br />
If <strong>and</strong> to the extent provided in any Supplemental Resolution authorizing the issuance <strong>of</strong> a Series <strong>of</strong><br />
Bonds, interest rate swap payments may be paid directly out <strong>of</strong>, <strong>and</strong> interest rate swap receipts paid directly into, the<br />
account or accounts in the Debt Service Fund established with respect to such Series <strong>of</strong> Bonds.<br />
Issue 1 Reserve Account<br />
The 1991 Master Resolution establishes the “Issue 1 Reserve Account” as security for the Issue 1<br />
Bonds <strong>and</strong> any other Participating Series <strong>of</strong> Bonds designated by Supplemental Resolution as being secured by the<br />
Issue 1 Reserve Account. The 2010A Bonds are not a Participating Series <strong>and</strong> are not secured by the Issue 1<br />
Reserve Account.<br />
2009 Reserve Account<br />
The Series Sale Resolution for the 2009C Bonds establishes the “2009 Reserve Account” as security<br />
for the 2009C Bonds <strong>and</strong> any other 2009 Reserve Account Series designated by Supplemental Resolution or by a Series<br />
Sale Resolution as being secured by the 2009 Reserve Account. The 2010A Bonds are not a 2009 Reserve Account<br />
Series <strong>and</strong> are not secured by the 2009 Reserve Account. The 2009 Reserve Account is required to be funded at the<br />
2009 Reserve Requirement. The moneys in said account will be used solely for the purpose <strong>of</strong> paying principal,<br />
interest or m<strong>and</strong>atory sinking fund payments on the Series <strong>of</strong> Bonds secured by such reserve account is established<br />
whenever any moneys then credited to the accounts within the Debt Service Fund for such Series <strong>of</strong> Bonds are<br />
insufficient for such purposes.<br />
Separate Reserve Accounts for Bonds not Designated as 2009 Reserve Account Series or Participating Series<br />
Unless otherwise provided in a Series Sale Resolution, each Series <strong>of</strong> Bonds will be a 2009<br />
Reserve Account Series or a Participating Series, or will be secured by a Series Reserve Account. The amount in<br />
each Series Reserve Account will be established <strong>and</strong> maintained at an amount equal to the Series Reserve<br />
Requirement which will be Maximum Series Annual Debt Service or such other amount as shall be set forth in a<br />
Series Sale Resolution.<br />
Application <strong>and</strong> Valuation <strong>of</strong> the Reserve Accounts<br />
The moneys in the Issue 1 Reserve Account, the 2009 Reserve Account <strong>and</strong> any separate Series<br />
Reserve Account (each a “Reserve Account”) are to be used solely for the purposes <strong>of</strong> paying interest, principal or<br />
m<strong>and</strong>atory sinking fund payments on the Bonds to which such accounts are pledged whenever any moneys then<br />
credited to the accounts within the Debt Service Fund for the applicable Series <strong>of</strong> Bonds are insufficient for such<br />
purposes <strong>and</strong> to pay one or more Credit Providers principal due with respect to any Credit Facility deposited in the<br />
Reserve Account for the applicable Series <strong>of</strong> Bonds to the extent that such payment will cause the amount available to<br />
be drawn under the related Credit Facility or Credit Facilities to be reinstated in an amount at least equal to the amount<br />
<strong>of</strong> such payment. In the event that the Trustee is required to apply amounts in a Reserve Account to pay interest,<br />
principal or m<strong>and</strong>atory sinking fund payments on the Bonds to which such accounts are pledged, the Trustee will apply<br />
all amounts (the “Cash Amount”) in such Reserve Account, other than amounts available pursuant to draws on Credit<br />
Facilities deposited in such Reserve Account, to such payments before drawing on any such Credit Facility. If after<br />
exhausting the Cash Amount, the Trustee has insufficient moneys to pay interest, principal or m<strong>and</strong>atory sinking fund<br />
payments on the applicable Series <strong>of</strong> Bonds, the Trustee will draw on the Credit Facilities deposited in the Reserve<br />
Account on a pro rata basis to the extent required to remedy the remaining deficiency.<br />
If at any time the balance in any Reserve Account shall for any reason be diminished below the<br />
amount required to be on deposit therein, the Trustee is required to immediately notify the <strong>Commission</strong> <strong>of</strong> such<br />
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