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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2010A Bonds May be Offered at Different Prices on Any Date Including an Interest Rate Determination Date<br />
Pursuant to the applicable Remarketing Agreement, each Remarketing Agent is required to determine the<br />
rate <strong>of</strong> interest that, in its judgment, is the lowest rate that would permit the sale <strong>of</strong> the related Series <strong>of</strong> 2010A<br />
Bonds bearing interest at that interest rate at par plus accrued interest, if any, on <strong>and</strong> as <strong>of</strong> the applicable Rate<br />
Determination Date. The interest rate will reflect, among other factors, the level <strong>of</strong> market dem<strong>and</strong> for such Series<br />
<strong>of</strong> 2010A Bonds (including whether the applicable Remarketing Agent is willing to purchase such Series <strong>of</strong> 2010A<br />
Bonds for its own account) <strong>and</strong>/or other similar securities. There may or may not be 2010A Bonds <strong>of</strong> such Series<br />
tendered <strong>and</strong> remarketed on a Rate Determination Date, the Remarketing Agent may or may not be able to remarket<br />
any 2010A Bonds <strong>of</strong> such Series tendered for purchase on such date at par <strong>and</strong> the applicable Remarketing Agent<br />
may sell 2010A Bonds <strong>of</strong> such Series at varying prices to different investors on such date or any other date. A<br />
Remarketing Agent is not obligated to advise purchasers in a remarketing if it does not have third party buyers for<br />
all <strong>of</strong> the 2010A Bonds <strong>of</strong> a Series at the remarketing price. In the event a Remarketing Agent owns any 2010A<br />
Bonds <strong>of</strong> a Series for its own account, such Remarketing Agent may, in its sole discretion in a secondary market<br />
transaction outside the tender process, <strong>of</strong>fer the such 2010A Bonds on any date, including the Rate Determination<br />
Date, at a discount to par to some investors.<br />
Ability to Sell the 2010A Bonds other than through the Tender Process May Be Limited<br />
A Remarketing Agent may buy <strong>and</strong> sell the 2010A Bonds <strong>of</strong> a Series other than through the tender process.<br />
However, it is not obligated to do so <strong>and</strong> may cease doing so at any time without notice <strong>and</strong> may require holders that<br />
wish to tender 2010A Bonds <strong>of</strong> such Series to do so through the Paying Agent with appropriate notice. Thus,<br />
investors who purchase 2010A Bonds, whether in a remarketing or otherwise, should not assume that they will be<br />
able to sell such 2010A Bonds other than by tendering such Series <strong>of</strong> 2010A Bonds in accordance with the tender<br />
process.<br />
Authority for Issuance<br />
SECURITY FOR THE 2010A BONDS<br />
The 2010A Bonds are being issued under the authority <strong>of</strong>, <strong>and</strong> in compliance with, the Charter <strong>of</strong> the <strong>City</strong><br />
<strong>and</strong> <strong>County</strong> <strong>of</strong> <strong>San</strong> Francisco (the “Charter”), the 1991 Master Resolution, <strong>and</strong> the statutes <strong>of</strong> the State <strong>of</strong> California<br />
(the “State”) as made applicable pursuant to the Charter.<br />
Source <strong>of</strong> Payment; Pledge <strong>of</strong> Net Revenues<br />
The 2010A Bonds, together with all Bonds issued <strong>and</strong> to be issued pursuant to the 1991 Master Resolution,<br />
are referred to as the “Bonds.” The 1991 Master Resolution constitutes a contract between the <strong>Commission</strong> <strong>and</strong> the<br />
registered owners <strong>of</strong> the Bonds under which the <strong>Commission</strong> has irrevocably pledged Net Revenues <strong>of</strong> the <strong>Airport</strong><br />
to the payment <strong>of</strong> the principal <strong>of</strong> <strong>and</strong> interest on the Bonds. Net Revenues are defined as the Revenues derived by<br />
the <strong>Commission</strong> from the operation <strong>of</strong> the <strong>Airport</strong>, less all Operation <strong>and</strong> Maintenance Expenses. The payment <strong>of</strong><br />
the principal <strong>of</strong> <strong>and</strong> interest on the 2010A Bonds are secured by a pledge <strong>of</strong>, lien on <strong>and</strong> security interest in Net<br />
Revenues on a parity with the pledge, lien <strong>and</strong> security interest securing all previously issued Bonds <strong>and</strong> any<br />
additional Bonds issued under the 1991 Master Resolution.<br />
“Revenues” are defined in the 1991 Master Resolution to include all revenues earned by the <strong>Commission</strong><br />
with respect to the <strong>Airport</strong>, as determined in accordance with generally accepted accounting principles. Revenues<br />
do not include: (a) investment income from moneys in (i) the Construction Fund, or (ii) the Debt Service Fund<br />
which constitute capitalized interest, or (iii) the Reserve Fund if <strong>and</strong> to the extent there is any deficiency therein; (b)<br />
interest income on, <strong>and</strong> any pr<strong>of</strong>it realized from, the investment <strong>of</strong> the proceeds <strong>of</strong> any Special Facility Bonds;<br />
(c) Special Facility Revenues <strong>and</strong> any income realized from the investment there<strong>of</strong>; (d) any passenger facility or<br />
similar charge levied by or on behalf <strong>of</strong> the <strong>Commission</strong> unless designated as Revenues by the <strong>Commission</strong>;<br />
(e) grants-in-aid, donations <strong>and</strong> bequests; (f) insurance proceeds; (g) the proceeds <strong>of</strong> any condemnation award; <strong>and</strong><br />
(h) the proceeds <strong>of</strong> any sale <strong>of</strong> l<strong>and</strong>, buildings or equipment.<br />
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