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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Events <strong>of</strong> Termination <strong>and</strong> Default<br />
Event <strong>of</strong> Termination. The following constitutes an Event <strong>of</strong> Termination under the<br />
Reimbursement Agreement:<br />
Any Rating Agency shall (i) downgrade the unenhanced long-term debt rating assigned to any<br />
Parity Bonds to below the “BBB+” category or its equivalent, or (ii) suspend or withdraw their unenhanced<br />
debt rating assigned to any Parity Bonds for credit-related reasons.<br />
Event <strong>of</strong> Default. Each <strong>of</strong> the following constitutes an Event <strong>of</strong> Default under the Reimbursement<br />
Agreement:<br />
(i) The <strong>Commission</strong> fails to pay to the Bank (a) the principal <strong>of</strong> or interest on the Bank Bond<br />
when due <strong>and</strong> such failure continues for a period <strong>of</strong> one Business Day, or (ii) any other Obligation when<br />
due <strong>and</strong> such failure continues for a period <strong>of</strong> three Business Days; or<br />
(ii) Any representation, certification or statement made by the <strong>Commission</strong> in the<br />
Reimbursement Agreement or in any Related Document or in any certificate or audited financial statement<br />
delivered pursuant to the Reimbursement Agreement or any Related Document (as defined in the<br />
Reimbursement Agreement) shall (in any such case) have been incorrect or untrue in any materially<br />
adverse respect when made or deemed to have been made; or<br />
(iii) (a) The <strong>Commission</strong> defaults in the due performance or observance <strong>of</strong> certain terms,<br />
covenants or agreements contained in the Reimbursement Agreement; or (ii) the <strong>Commission</strong> defaults in<br />
the due performance or observance <strong>of</strong> any other term, covenant or agreement contained in the<br />
Reimbursement Agreement (other than those covered by clauses (i), (ii) <strong>and</strong> (iii)(a) above) <strong>and</strong> such failure<br />
shall remain unremedied for a period <strong>of</strong> 30 days after the Bank shall have given the <strong>Commission</strong> written<br />
notice <strong>of</strong> such default; provided, that, so long as the <strong>Commission</strong> shall be proceeding with due diligence to<br />
remedy any default in the due performance or observance <strong>of</strong> such covenants which, if begun <strong>and</strong><br />
prosecuted with due diligence, cannot be completed within a period <strong>of</strong> 30) days, then such 30-day period<br />
shall be extended to the extent as shall be necessary to enable the <strong>Commission</strong> to begin <strong>and</strong> complete the<br />
remedying <strong>of</strong> such default through the exercise <strong>of</strong> due diligence, but in no event for a period <strong>of</strong> more than<br />
120 days; or<br />
(iv) The <strong>Commission</strong> shall fail to pay when due <strong>and</strong> payable (whether by scheduled maturity,<br />
required prepayment, acceleration, dem<strong>and</strong> or otherwise) principal or interest on any Parity Bonds (as<br />
defined in the Reimbursement Agreement); or<br />
(v) A proceeding is instituted against the <strong>City</strong> or the <strong>Commission</strong> in a court having<br />
jurisdiction over the <strong>City</strong> or the <strong>Commission</strong>, any <strong>of</strong> their activities or any <strong>of</strong> their properties seeking an<br />
order for rehabilitation, reorganization, conservation, liquidation or dissolution in respect <strong>of</strong> the <strong>City</strong> or the<br />
<strong>Commission</strong> under applicable law <strong>and</strong> such proceeding is not terminated for a period <strong>of</strong> 60 consecutive<br />
days or such court enters an order granting the relief sought in such proceeding or the <strong>City</strong> or the<br />
<strong>Commission</strong> shall institute or take any corporate action for the purposes <strong>of</strong> instituting any such proceeding;<br />
or the <strong>City</strong> or the <strong>Commission</strong> shall become insolvent or unable to pay their respective debts as they<br />
mature, or the <strong>City</strong> or the <strong>Commission</strong> shall commence a voluntary case under any applicable bankruptcy,<br />
insolvency or other similar law now or hereafter in effect, shall consent to the entry <strong>of</strong> an order for relief in<br />
an involuntary case under any such law or shall consent to the appointment <strong>of</strong> or taking possession by a<br />
receiver, liquidator, assignee, trustee, custodian or sequestrator (or other similar <strong>of</strong>ficial) <strong>of</strong> the <strong>City</strong> or the<br />
<strong>Commission</strong> or for any substantial part <strong>of</strong> their respective properties, or shall make a general assignment<br />
for the benefit <strong>of</strong> creditors, or the <strong>City</strong> or the <strong>Commission</strong> shall fail generally to pay their respective debts<br />
or claims as they become due, or there shall be made a declaration <strong>of</strong> moratorium by a Governmental<br />
Authority <strong>of</strong> appropriate jurisdiction with respect to any debt <strong>of</strong> the <strong>City</strong> or the <strong>Commission</strong> or the <strong>City</strong> or<br />
the <strong>Commission</strong> shall take any corporate action in furtherance <strong>of</strong> any <strong>of</strong> the foregoing; or<br />
(vi) The Reimbursement Agreement or any provision here<strong>of</strong>, at any time after the execution<br />
<strong>and</strong> delivery here<strong>of</strong>, or the 1991 Master Resolution or any provision there<strong>of</strong> shall, for any reason, cease to<br />
be valid <strong>and</strong> binding on the <strong>Commission</strong> or in full force <strong>and</strong> effect or shall be declared, in a final, non<br />
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