RDA Reso 2004-005 - Laserfiche WebLink

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behalf of the Agency are for the equal and proportionate benefit, security and protection of all owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number or date thereof or the time of sale, execution and delivery thereof, or otherwise for any cause whatsoever, except as expressly provided in the Bonds or in the Indenture. Issuance of Additional Debt Parity Debt. In addition to the Bonds, the Agency may, by Supplemental Indenture, issue additional bonds or incur other loans, advances or indebtedness payable from Tax Revenues on a parity with the Bonds ("Parity Debt") to finance redevelopment activities with respect to the Redevelopment Project in such principal amount as shall be determined by the Agency. The Agency may issue and deliver any such Parity Debt subject to specific conditions set forth in the Indenture, including the following: (i) No event of default under the Indenture, under any Parity Debt Instrument or under any Subordinate Debt Instrument shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in the Indenture; and (ii) The Tax Revenues estimated to be received for the then current Fiscal Year, based on the most recent assessed valuation of property in the Project Area (excluding taxes attributable to a tax rate levied by a taxing agency after January 1, 1989 for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness of such taxing agency), as evidenced in writing from the County Assessor or other appropriate official of the County, shall be at least equal to one hundred thirty percent (130%) of Maximum Annual Debt Service on the Bonds, any outstanding Parity Debt, and annual debt service on the proposed Parity Debt. (iii) In the case of Parity Debt issued as additional bonds under a Supplemental Indenture, the amount on deposit in the Reserve Account (and any subaccounts therein) shall be increased to the Reserve Requirement taking into account the additional bonds to be issued. For additional conditions that must be met for the issuance of Parity Debt, see "APPENDIX C -SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE." Subordinate Debt. Pursuant to the Indenture, the Agency may issue or incur subordinate debt ("Subordinate Debt") in such principal amount as shall be determined by the Agency. Such Subordinate Debt may be payable from any assets or property of the Agency, including Tax Revenues on a subordinate basis to the payment of debt service on the Bonds. Reserve Account Under the Indenture, a Reserve Account is established and held by the Trustee. On the Closing Date, a portion of Bond proceeds will be deposited into the Reserve Account in the amount of the Reserve Requirement. "Reserve Requirement" is defined in the Indenture to mean, as of the date of calculation by the Agency, the lesser of (i) the amount of Maximum Annual Debt Service on the Bonds (excluding from the calculation thereof Parity Debt other than additional bonds pursuant to a supplement to the Indenture), and (ii) one hundred and twenty five percent (125%) of average Annual Debt Service on the Bonds (excluding from the calculation thereof Parity Debt other than additional bonds pursuant to a supplement to the Indenture); provided, that in no event shall the Agency, in connection with the issuance of additional bonds pursuant to a supplement to the Indenture, be obligated to deposit an amount in the Reserve Account which is in excess of the amount permitted by the applicable provisions of the Internal Revenue Code to be so deposited from the proceeds of tax-exempt bonds -10-