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 ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
act or thing the effect <strong>of</strong> which would be to hinder, delay or imperil either the payment <strong>of</strong> the indebtedness evidenced<br />
by any <strong>of</strong> the Bonds or any other obligation secured by the 1991 Master Resolution or the performance or observance<br />
<strong>of</strong> any <strong>of</strong> the covenants contained therein. The <strong>Commission</strong> has also covenanted that it will not dispose <strong>of</strong> assets<br />
necessary to operate the <strong>Airport</strong> in the manner <strong>and</strong> at the levels <strong>of</strong> activity required to enable it to perform its covenants<br />
contained in the 1991 Master Resolution.<br />
Insurance<br />
Subject in each case to the condition that insurance is obtainable at reasonable rates from responsible<br />
insurers <strong>and</strong> upon reasonable terms <strong>and</strong> conditions:<br />
(a) The <strong>Commission</strong> will procure or provide <strong>and</strong> maintain, at all times while any <strong>of</strong> the Bonds<br />
shall be outst<strong>and</strong>ing, insurance or qualified self-insurance on the <strong>Airport</strong> against such risks<br />
as are usually insured by other major airports. Such insurance or qualified self-insurance<br />
shall be in an adequate amount as to the risk insured against as determined by the<br />
<strong>Commission</strong>. The <strong>Commission</strong> is not required to carry insurance or qualified self-insurance<br />
against losses caused by l<strong>and</strong> movement, including but not limited to seismic activity.<br />
(b) Any qualified self-insurance must be established in accordance with applicable law; must<br />
include reserves or reinsurance in amounts which the <strong>Commission</strong> determines to be<br />
adequate to protect against risks assumed under such qualified self-insurance, including<br />
without limitation any potential retained liability in the event <strong>of</strong> the termination <strong>of</strong> such<br />
qualified self-insurance; <strong>and</strong> must be reviewed at least once every 12 months by an<br />
insurance consultant who will deliver to the <strong>Commission</strong> a report on the adequacy <strong>of</strong> the<br />
reserves established or reinsurance provided thereunder. If the insurance consultant<br />
determines that such reserves or reinsurance are inadequate, it will make a recommendation<br />
as to the amount <strong>of</strong> reserves or reinsurance that should be established <strong>and</strong> maintained, <strong>and</strong><br />
the <strong>Commission</strong> will comply with such recommendation unless it can establish to the<br />
satisfaction <strong>of</strong>, <strong>and</strong> receive a certification from, the insurance consultant that a lower<br />
amount is reasonable to provide adequate protection to the <strong>Airport</strong> <strong>and</strong> the <strong>Commission</strong>.<br />
(c) The <strong>Commission</strong> will secure <strong>and</strong> maintain adequate fidelity insurance or bonds on all<br />
<strong>of</strong>ficers <strong>and</strong> employees h<strong>and</strong>ling or responsible for funds <strong>of</strong> the <strong>Commission</strong>, except to the<br />
extent that such insurance is provided by the <strong>City</strong>.<br />
(d) Within 120 days after the close <strong>of</strong> each Fiscal Year, the <strong>Commission</strong> will file with the<br />
Trustee a certificate containing a summary <strong>of</strong> all insurance policies <strong>and</strong> qualified selfinsurance<br />
then in effect with respect to the <strong>Airport</strong> <strong>and</strong> the <strong>Commission</strong>.<br />
(e) The proceeds <strong>of</strong> any insurance on the <strong>Airport</strong> will be applied solely for <strong>Airport</strong> purposes.<br />
Financial Records <strong>and</strong> <strong>Statement</strong>s<br />
The <strong>Commission</strong> will maintain, or cause to be maintained, proper books <strong>and</strong> records in which full<br />
<strong>and</strong> correct entries shall be made in accordance with generally accepted accounting principles, <strong>of</strong> all its business <strong>and</strong><br />
affairs. The <strong>Commission</strong> will have an annual audit made by an independent auditor <strong>and</strong> will within 120 days after the<br />
end <strong>of</strong> each <strong>of</strong> its Fiscal Years furnish to the Trustee copies <strong>of</strong> the audited financial statements <strong>of</strong> the <strong>Commission</strong> for<br />
such Fiscal Year.<br />
Tax Covenants<br />
The <strong>Commission</strong> covenants that, if applicable, it will make no use <strong>of</strong> the proceeds <strong>of</strong> any Series <strong>of</strong><br />
Bonds or take any other action or permit any other action to be taken that would affect adversely the exclusion from<br />
C-21