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.
gross income <strong>of</strong> interest on such Series <strong>of</strong> Bonds for federal income tax purposes or, if applicable, the non-preference<br />
status <strong>of</strong> such interest for federal alternative minimum income tax purposes.<br />
Limitation on Covered Obligations<br />
The <strong>Commission</strong> covenants <strong>and</strong> agrees that it will not issue or incur any obligation for borrowed<br />
money payable from Net Revenues (i) which is subject to optional or m<strong>and</strong>atory purchase or tender for purchase prior<br />
to maturity (other than at the option <strong>of</strong> the <strong>Commission</strong>), or (ii) which matures in less than 365 days from the date <strong>of</strong><br />
issuance there<strong>of</strong> (collectively, "Covered Obligations") to the extent the aggregate principal amount <strong>of</strong> all such Covered<br />
Obligations, at the time <strong>of</strong> issuance or incurrence there<strong>of</strong>, would exceed 40% <strong>of</strong> the aggregate principal amount <strong>of</strong> all<br />
obligations <strong>of</strong> the <strong>Commission</strong> for borrowed money payable from Net Revenues then outst<strong>and</strong>ing. The limitation in<br />
the foregoing sentence shall not apply to Covered Obligations described in (i) the scheduled maturity <strong>of</strong> which is not<br />
subject to acceleration. The credit or liquidity facility in connection with any Covered Obligation any portion <strong>of</strong> the<br />
repayment or reimbursement obligation with respect to which is on a parity with the Bonds shall be subject to the<br />
limitations thereon described in the section entitled “Repayment Obligations” above.<br />
Events <strong>of</strong> Default<br />
The 1991 Master Resolution provides that “Event <strong>of</strong> Default” with respect to a Series <strong>of</strong> Bonds<br />
means any one <strong>of</strong> the following events:<br />
(a) if payment by the <strong>Commission</strong> in respect <strong>of</strong> any installment <strong>of</strong> interest on any Bond <strong>of</strong> such<br />
Series is not made in full when the same becomes due <strong>and</strong> payable;<br />
(b) if payment by the <strong>Commission</strong> in respect <strong>of</strong> the principal or accreted value <strong>of</strong> any Bond <strong>of</strong><br />
such Series is not made in full when the same becomes due <strong>and</strong> payable, whether at<br />
maturity or by proceedings for redemption or otherwise;<br />
(c) if payment <strong>of</strong> the purchase price <strong>of</strong> any Bond tendered for optional or m<strong>and</strong>atory purchase<br />
in accordance with the provisions <strong>of</strong> the Supplemental Resolution providing for the<br />
issuance <strong>of</strong> such Bond is not made in full as <strong>and</strong> when due;<br />
(d) if the <strong>Commission</strong> fails to observe or perform any other covenant or agreement on its part<br />
under the 1991 Master Resolution (other than the covenant or agreement to maintain<br />
rentals, rates, fees <strong>and</strong> charges sufficient to meet the rate covenant with respect to the<br />
Bonds), for a period <strong>of</strong> 60 days after the date on which written notice <strong>of</strong> such failure,<br />
requiring the same to be remedied, shall have been given to the <strong>Commission</strong> by the Trustee,<br />
or to the <strong>Commission</strong> <strong>and</strong> the Trustee by the Holders <strong>of</strong> at least 25% in aggregate Principal<br />
Amount <strong>of</strong> Bonds <strong>of</strong> such Series then outst<strong>and</strong>ing; provided, however, that if the breach <strong>of</strong><br />
covenant or agreement is one which cannot be completely remedied within the 60 days after<br />
written notice has been given, it shall not be an Event <strong>of</strong> Default with respect to such Series<br />
as long as the <strong>Commission</strong> has taken active steps within the 60 days after written notice has<br />
been given to remedy the failure <strong>and</strong> is diligently pursuing such remedy;<br />
(e) if the <strong>Commission</strong> is required pursuant to the rate covenant contained in the 1991 Master<br />
Resolution to take measures to revise the schedule <strong>of</strong> rentals, rates, fees <strong>and</strong> charges for the<br />
use <strong>of</strong> the <strong>Airport</strong>, <strong>and</strong> Net Revenues, together with any Transfer, for the Fiscal Year in<br />
which such adjustments are made are less than the amount required by the rate covenant<br />
with respect to the Bonds (See “Certain Covenants - Rate Covenant”);<br />
(f) if either the <strong>Commission</strong> or the <strong>City</strong> institutes proceedings to be adjudicated a bankrupt or<br />
insolvent, or consents to the institution <strong>of</strong> bankruptcy or insolvency proceedings against it,<br />
or files a petition or answer or consent seeking reorganization or relief under the federal<br />
Bankruptcy Code or any other similar applicable federal or state law, or consents to the<br />
C-22