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<br />3 <br />No Reserve Account. Neither the City nor the Authority will create or maintain a debt service reserve account with respect to the Lease Payments, the 2016 Bonds or the 2018 <br />Bonds. <br />Additional Bonds. As previously described, the 2018 Bonds are secured solely by Revenues and certain funds and accounts held under the Indenture on a parity with the 2016 <br />Bonds. The 2016 Bonds are currently outstanding in the aggregate principal amount of $12,345,000 and mature on November 1, 2029. In addition, the City has other existing obligations payable from the General Fund, and the City is permitted to enter into other <br />obligations which constitute additional charges against its revenues without the consent of the Owners of the 2018 Bonds. See “THE CITY AND CITY FINANCIAL INFORMATION – General Fund Obligations.” <br />Under the Indenture, the Authority covenants that no additional bonds, notes or other indebtedness shall be issued or incurred by the Authority which are payable out of the <br />Revenues in whole or in part, subject to the provisions of the Lease relating to permitted <br />amendments that provide for additional rental to be pledged or assigned for the payment of bonds issued to finance or refinance projects for which the City is authorized to expend its funds <br />and subject to the satisfaction of certain conditions precedent set forth in the Lease. See <br />“SECURITY FOR THE 2018 BONDS – Additional Bonds.” <br />Redemption. The 2018 Bonds are subject to redemption prior to their stated maturity <br />dates. See “THE 2018 BONDS – Redemption.” <br />Abatement. The Lease provides that the obligation of the City to pay Lease Payments will be subject to abatement by reason of (i) any damage or destruction such that there is <br />substantial interference with the use and occupancy of all or any portion of the Leased Property, or (ii) a temporary taking of the Leased Property or a permanent taking of a portion of the Leased Property. If the Lease Payments are abated under the Lease, the Bond Owners could <br />receive less than the full amount of principal of and interest on the 2018 Bonds. However, the Lease provides that there shall be no abatement of the Lease Payments in <br />the event and to the extent that amounts in the Insurance and Condemnation Fund or the Bond Fund are available to pay Lease Payments which would otherwise be abated. <br /> <br />In addition, if proceeds of rental interruption insurance are available, Lease Payments (or a portion thereof) must be made from such proceeds during periods of abatement. See <br />“SECURITY FOR THE 2018 BONDS − Abatement” and “BOND OWNERS’ RISKS − <br />Abatement.” <br />Risks of Investment. The 2018 bonds are payable solely from and secured by a <br />pledge of Revenues and certain funds and accounts held under the Indenture on a parity with the 2016 Bonds. The 2018 Bonds are not secured by a pledge of the taxing power of the City. <br />The Authority has no taxing power. None of the 2018 Bonds, nor the obligation of the Authority to pay principal of or interest on the 2018 Bonds, nor the obligation of the City to make the Lease Payments, constitutes a debt or a liability of the Authority, the City, the State or any of its <br />political subdivisions within the meaning of any constitutional limitation on indebtedness, or a <br />pledge of the full faith and credit of the City. See “SECURITY FOR THE 2018 BONDS.” <br />For a discussion of some of the risks associated with the purchase of the 2018 Bonds, <br />see “RISK FACTORS.”