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

Subordinate Bonds
The Commission may issue, at any time while any of the Bonds are outstanding, Subordinate Bonds
with a pledge of, lien on, and security interest in Net Revenues which are junior and subordinate to those of the Bonds.
The principal and interest, redemption premium and reserve fund requirements on such Subordinate Bonds will be
payable from time to time out of Net Revenues only if all amounts then required to have been paid or deposited from
Net Revenues with respect to principal, redemption premium, interest and reserve fund requirements on the Bonds then
outstanding or thereafter to be outstanding shall have been paid or deposited as required in the 1991 Master Resolution
and any Supplemental Resolution.
Special Facility Bonds
The Commission may (a) designate an existing or planned facility, structure, equipment or other
property, real or personal, which is at the Airport or part of any facility or structure at the Airport as a Special Facility,
(b) provide that revenues earned by the Commission from or with respect to such Special Facility shall constitute
Special Facility Revenues and shall not be included as Revenues, and (c) issue Special Facility Bonds for the purpose
of acquiring, constructing, renovating, or improving such Special Facility, or providing financing to a third party for
such purposes. Principal, purchase price, if any, redemption premium, if any, and interest with respect to Special
Facility Bonds shall be payable from and secured by the Special Facility Revenues, and not from or by Net Revenues.
No Special Facility Bonds shall be issued by the Commission unless an Airport Consultant has
certified (i) that the estimated Special Facility Revenues with respect to the proposed Special Facility will be at least
sufficient to pay the principal, or purchase price, interest, and all sinking fund, reserve fund and other payments
required with respect to Special Facility Bonds when due, and to pay all costs of operating and maintaining the Special
Facility not paid by a party other than the Commission; (ii) that estimated Net Revenues calculated without including
the Special Facility Revenues and without including any operation and maintenance expenses of the Special Facility as
Operation and Maintenance Expenses will be sufficient so that the Commission will be in compliance with the rate
covenant (see “Certain Covenants - Rate Covenant”) during each of the five Fiscal Years immediately following the
issuance of the Special Facility Bonds; and (iii) no Event of Default exists.
Upon the payment in full or other discharge of the Special Facility Bonds, Special Facility Revenues
with respect to the Special Facility shall be included as Revenues.
Certain Covenants
Punctual Payment
The Commission will punctually pay or cause to be paid the principal and interest (and premium, if
any) to become due in respect of all the Bonds, in strict conformity with the terms of the Bonds and of the 1991 Master
Resolution and any applicable Supplemental Resolution, and it will faithfully observe and perform all of the conditions,
covenants and requirements of the 1991 Master Resolution and all Supplemental Resolutions and of the Bonds.
Negative Pledge
The Commission will not create any pledge, lien on, security interest in or encumbrance upon, or
permit the creation of any pledge of, lien on, security interest in or encumbrance upon, Revenues or Net Revenues
except for a pledge, lien, security interest or encumbrance subordinate to the pledge, lien and security interest granted
by the 1991 Master Resolution for the benefit of the Bonds.
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