Official Statement Airport Commission City and County of San ...

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