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