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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fixed annual rate equal to 1.25 times the rate determined pursuant to paragraphs (b) <strong>and</strong> (c), as the case may be, <strong>of</strong> the<br />
definition <strong>of</strong> “Annual Debt Service” herein.<br />
In the event that the <strong>Commission</strong> proposes to assume any indebtedness for borrowed money in<br />
connection with assuming the possession, management, supervision <strong>and</strong> control <strong>of</strong> any airport or other revenueproducing<br />
facilities, such indebtedness may constitute additional Bonds under the 1991 Master Resolution entitled to an<br />
equal pledge <strong>of</strong> <strong>and</strong> lien on Net Revenues as the Bonds provided that the requirements <strong>of</strong> the 1991 Master Resolution<br />
relating to additional Bonds are satisfied with respect to the assumption <strong>of</strong> such indebtedness.<br />
Refunding Bonds<br />
The <strong>Commission</strong> may issue Bonds for the purpose <strong>of</strong> refunding any Bonds or Subordinate Bonds.<br />
The <strong>Commission</strong> is permitted to issue such refunding Bonds only (i) upon compliance with the additional Bonds test<br />
established by the 1991 Master Resolution, or (ii) if the <strong>Commission</strong> provides the Trustee with a certificate <strong>of</strong> an<br />
<strong>Airport</strong> Consultant or financial consultant that (A) aggregate Annual Debt Service in each Fiscal Year with respect to<br />
all Bonds to be outst<strong>and</strong>ing after the issuance <strong>of</strong> such refunding Bonds will be less than aggregate Annual Debt Service<br />
in each such Fiscal Year in which Bonds are outst<strong>and</strong>ing prior to the issuance <strong>of</strong> such refunding Bonds, <strong>and</strong><br />
(B) Maximum Annual Debt Service with respect to all Bonds to be outst<strong>and</strong>ing after issuance <strong>of</strong> such refunding Bonds<br />
will not exceed Maximum Annual Debt Service with respect to all Bonds outst<strong>and</strong>ing immediately prior to such<br />
issuance.<br />
Repayment Obligations<br />
If so provided in the applicable Supplemental Resolution <strong>and</strong> in the written agreement between the<br />
<strong>Commission</strong> <strong>and</strong> the Credit Provider or Liquidity Provider, as applicable, a Repayment Obligation may be accorded the<br />
status <strong>of</strong> a Bond solely for purposes <strong>of</strong> the 1991 Master Resolution, provided, however, that the Credit Facility or<br />
Liquidity Provider, as applicable, with respect thereto shall not constitute a bond for any other purpose, including<br />
without limitation for purposes <strong>of</strong> the Charter. The Credit Provider or Liquidity Provider, as applicable, shall be<br />
deemed to be the Holder <strong>of</strong> such Bond, <strong>and</strong> such Bond shall be deemed to have been issued as <strong>of</strong> the original date <strong>of</strong><br />
the Bond or Bonds for which such Credit Facility or Liquidity Provider, as applicable, was provided. Notwithst<strong>and</strong>ing<br />
the stated terms <strong>of</strong> the Repayment Obligation, the Bond deemed to be held by the Credit Provider or Liquidity<br />
Provider, as applicable, shall be deemed to be amortized on a level debt service basis at the Index Rate over a period<br />
equal to the lesser <strong>of</strong> (a) 20 years, or (b) the period ending on the later <strong>of</strong> (i) the final maturity date <strong>of</strong> the Bonds<br />
payable from or secured by such Credit Facility or Liquidity Provider, as applicable, or (ii) the date the Repayment<br />
Obligation is due under the terms <strong>of</strong> the written agreement with respect thereto, with principal payable annually<br />
commencing on the next Principal Payment Date with respect to such Bonds <strong>and</strong> interest payable semiannually<br />
commencing on the next Interest Payment Date with respect to such Bonds. Such Bond shall be deemed to bear<br />
interest at the rate provided in the written agreement with respect to the Repayment Obligation. Any amount which<br />
becomes due <strong>and</strong> payable on the Repayment Obligation under the written agreement with respect thereto (but not<br />
earlier than 15 years from the date such Repayment Obligation is incurred) <strong>and</strong> which is in excess <strong>of</strong> the amount<br />
deemed to be principal <strong>of</strong> <strong>and</strong> interest on a Bond shall be junior <strong>and</strong> subordinate to the Bonds. The rights <strong>of</strong> a Credit<br />
Provider or Liquidity Provider, as applicable, under the 1991 Master Resolution shall be in addition to any rights <strong>of</strong><br />
subrogation which the Credit Provider or Liquidity Provider, as applicable, may otherwise have or be granted under<br />
law or pursuant to any Supplemental Resolution. Notwithst<strong>and</strong>ing anything in the 1991 Master Resolution to the<br />
contrary, a Bond <strong>and</strong> an unreimbursed Repayment Obligation arising with respect to such Bond shall not be deemed to<br />
be Outst<strong>and</strong>ing at the same time.<br />
C-18