10B Action 2009 1221 - Laserfiche WebLink

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(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; (iv) Principal with respect to such Parity Debt will be required to be paid on September 1 in any year in which such principal is payable; and (v) The Agency shall deliver to the Trustee a Written Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (i) and (ii) above have been satisfied. For additional information regarding 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 Housing Tax Revenues on a subordinate basis to the payment of debt service on the 2010 Bonds. Reserve Account Under the Indenture, a Reserve Account is established and held by the Trustee. On the Closing Date, a portion of 2010 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 2010 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 2010 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 without having to restrict the yield of any investment purchased with any portion of such deposit. "Maximum Annual Debt Service" means, as of the date of calculation, the largest Annual Debt Service for the current or any future Bond Year, including payments on any Parity Debt, as certified in writing by the Agency to the Trustee. For purposes of such calculation, there shall be excluded the principal of any Bonds and other Parity Debt, together with the interest to accrue thereon, in the event and to the extent that the proceeds of such Bonds and other Parity Debt are deposited in an escrow fund and are held in cash or are invested solely in Permitted Investments and from which amounts may not be released to the Agency unless the amount of Housing Tax Revenues for the current Fiscal Year (as evidenced in the written records of the County) plus Additional Revenues at least equal the requirements for issuance of Parity Debt under the Indenture. "Additional Revenues" means, as the date of calculation, the amount of Housing Tax Revenues which, as shown in a report of an Independent Redevelopment Consultant, are estimated to be receivable by the Agency within the Fiscal Year following the Fiscal Year in which such calculation is made as a result of increases in the assessed valuation of taxable property in each Project Area due to either (a) construction which has been completed and for which a certificate of occupancy has been issued by the County or -13-