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

deficiency, and the Commission is required to cause the applicable Reserve Account to be replenished by transfers
from available Net Revenues over a period not to exceed twelve months from the date the Commission receives notice
from the Trustee of such deficiency.
Subject to the terms and conditions of the 1991 Master Resolution, each Reserve Account is to be
replenished from available Net Revenues in the following order of priority, each requirement to be satisfied in full
before the next requirement in priority: (1) on a pro rata basis, payments to Credit Providers of principal then due with
respect to any Credit Facility deposited in such Reserve Account to the extent that such payments will cause the
amounts available to be drawn under such Credit Facility or Credit Facilities to be reinstated in an amount at least equal
to such payments; and (2) other amounts required to be deposited in such Reserve Account to increase the amount
therein to the Aggregate Maximum Annual Debt Service on the then outstanding Bonds to which such accounts are
pledged.
Under the 1991 Master Resolution, the Trustee is required to determine the amount in each Reserve
Account from time to time but not less frequently than annually. Permitted Investments in each Reserve Account are to
be valued at cost plus accreted value. In the event that the Trustee determines on any valuation date that the amount in
each Reserve Account exceeds Aggregate Maximum Annual Debt Service on all then outstanding Bonds to which such
accounts are pledged, upon the request of the Commission, the Trustee will transfer the amount of such excess to the
Treasurer for deposit in the applicable Revenues Account.
In the event Bonds of a Series are to be redeemed in whole or in part pursuant to the 1991 Master
Resolution, or the Commission notifies the Trustee in writing of its intention to refund Bonds of a Series in whole or in
part, the Trustee is required to value the amount in the Reserve Account applicable to such Bonds, and if the Trustee
determines that the amount in the applicable Reserve Account exceeds Aggregate Maximum Annual Debt Service on
the Bonds to which such accounts are pledged to remain outstanding after such redemption or refunding, upon the
request of the Commission, the Trustee will transfer the amount of such excess in accordance with such request.
At its option, the Commission may at any time substitute a Credit Facility meeting the requirements
of the 1991 Master Resolution for amounts on deposit in each Reserve Account. The 1991 Master Resolution requires
that the substitution of a Credit Facility for amounts on deposit in each Reserve Account not cause the then-current
ratings on the Bonds to which such accounts are pledged to be downgraded or withdrawn. In the event that after the
substitution of a Credit Facility for all or any part of the amounts on deposit in a Reserve Account, the amount in such
Reserve Account is greater than the amount required to be on deposit therein, upon the request of an authorized
Commission representative, the Trustee will transfer such excess to the Commission to be used solely for Airport
purposes. The 1991 Master Resolution further requires that any such Credit Facility provided in the form of a surety
bond be issued by an institution then rated in the highest rating category, without regard to subcategories, by Moody's
and Standard & Poor's, and that any such Credit Facility provided in the form of a letter of credit be issued by an
institution then rated in at least the second highest rating category, without regard to subcategories, by Moody's and
Standard & Poor's.
Any draw on any Credit Facility on deposit in a Reserve Account shall be made only after all the
funds in such Reserve Account have been expended. In such event, draws on each Credit Facility shall be made on a
pro rata basis to fund the insufficiency. The 1991 Master Resolution provides that a Reserve Account shall be
replenished in the following priority: (i) principal of each Credit Facility shall be paid from first available Net
Revenues on a pro rata basis to the extent that such payments will cause the amounts available to be drawn under each
Credit Facility to be reinstated in an amount at least equal to such payments: and (ii) after all such amounts are paid in
full, amounts necessary to fund a Reserve Account to the required level, after taking into account the amounts available
under each Credit Facility shall be deposited from next available Net Revenues.
Permitted Investments
Amounts in the Debt Service Accounts are to be invested in Permitted Investments described in
clause (a) or (b) of the definition thereof maturing on or before the Bond payment date on which the proceeds of such
Permitted Investments are intended to be applied for the purposes of the Debt Service Account to which such Permitted
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