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

Investments are allocated. Amounts in each Reserve Account are to be invested in Permitted Investments described in
clause (a) or (b) of the definition thereof maturing no later than seven years after the date of purchase of the Permitted
Investment. For a further description of the Permitted Investments with respect to the 2010A Bonds, see also
“Summary of the Supplemental Resolutions – Application of the Series 2010A Debt Service Accounts” in this
Appendix C.
Issuance of Additional Series of Bonds
General Requirements
Whenever the Commission determines to issue any additional Bonds, the Commission is required to
adopt a Supplemental Resolution authorizing the issuance of such Series of Bonds and to deliver to the Trustee (i) a
certificate to the effect that the Commission is not then in default under the terms and provisions of the 1991 Master
Resolution or any Supplemental Resolution; (ii) an opinion of bond counsel to the effect that such Series of Bonds has
been duly authorized in conformity with law and all prior proceedings of the Commission; and (iii) certain other items
specified by the 1991 Master Resolution or the Supplemental Resolution or which may be reasonably requested by the
Commission or the Trustee.
Additional Bonds Test
The Commission is not permitted to issue any Series of Bonds (other than refunding Bonds) unless
the Trustee has been provided with either:
(a) a certificate of an Airport Consultant dated within 30 days prior to the date of delivery of
the Bonds stating that:
(i) for the period, if any, from and including the first full Fiscal Year following the issuance of
such additional Bonds through and including the last Fiscal Year during any part of which
interest on such Bonds is expected to be paid from the proceeds thereof, projected Net
Revenues, together with any Transfer, in each such Fiscal Year will be at least equal to 1.25
times Annual Debt Service; and
(ii) for the period from and including the first full Fiscal Year following the issuance of such
Bonds during which no interest on such Bonds is expected to be paid from the proceeds
thereof through and including the later of: (A) the fifth full Fiscal Year following the
issuance of such Bonds, or (B) the third full Fiscal Year during which no interest on such
Bonds is expected to be paid from the proceeds thereof, (1) projected Net Revenues in each
such Fiscal Year will be at least sufficient to make all required payments and deposits in
such Fiscal Year into the Revenue Bond Account and the General Obligation Bond
Account pursuant to the 1991 Master Resolution, and to make the Annual Service Payment
to the City and (2) projected Net Revenues, together with any Transfer, in each such Fiscal
Year will be at least equal to 125% of aggregate Annual Debt Service with respect to the
Bonds for such Fiscal Year; or
(b) a certificate of an Independent Auditor stating that Net Revenues, together with any
Transfer, in the most recently completed Fiscal Year were at least equal to 125% of the sum of (i) Annual Debt Service
on the Bonds in such Fiscal Year, plus (ii) Maximum Annual Debt Service on the Bonds proposed to be issued.
For purposes of (a) and (b) above, the amount of any Transfer taken into account shall not exceed
25% of Maximum Annual Debt Service on the Bonds. In determining projected Net Revenues for purposes of
(a) above, the Airport Consultant may take into account reasonably anticipated changes in Revenues and Operation and
Maintenance Expenses over such period. In determining Annual Debt Service for purposes of (a) or (b) above, Bonds
that will be paid or discharged immediately after the issuance of the Series of Bonds proposed to be issued will be
disregarded, and Variable Rate Bonds will be deemed to bear interest during any period after the date of calculation at a
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