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Item PFA-3 - Water Revenue Bonds
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Item PFA-3 - Water Revenue Bonds
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5/30/2024 4:32:57 PM
Creation date
5/29/2024 6:14:44 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
PFA-3
Date
6/4/2024
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(a) failure in the due and punctual payment of the interest on any Bond when <br />and as the same shall become due and payable; <br />(b) failure in the due and punctual payment of the principal of or redemption <br />premium, if any, on any Bond when and as the same shall become due and payable, whether <br />at maturity as therein expressed or by proceedings for redemption; <br />(c) failure by the Authority in the performance of any of the other agreements <br />or covenants required herein to be performed by the Authority, and such default shall have <br />continued for a period of 30 days after the Authority shall have been given notice in writing <br />of such default by the Trustee, or to the Authority and the Trustee by Owners of not less <br />than 25% of the Bonds; or <br />(d) if any event of default shall have occurred and be continuing under Section <br />8.01 of the Installment Purchase Agreement; or <br />(e) if the Authority shall file a petition or answer seeking arrangement or <br />reorganization under the federal bankruptcy laws or any other applicable law of the United <br />States of America or any state therein, or if a court of competent jurisdiction shall approve <br />a petition filed with or without the consent of the Authority seeking arrangement or <br />reorganization under the federal bankruptcy laws or any other applicable law of the United <br />States of America or any state therein, or if under the provisions of any other law for the <br />relief or aid of debtors any court of competent jurisdiction shall assume custody or control <br />of the Authority or of the whole or any substantial part of its property; <br />then and in each and every such case during the continuance of such event of default the Trustee <br />may, upon the written request of the Owners of not less than 25% in aggregate principal amount <br />of the Bonds then Outstanding by notice in writing to the Authority, declare the principal of all <br />Bonds then Outstanding and the interest accrued thereon to be due and payable immediately, and <br />upon any such declaration the same shall become due and payable, anything contained herein or <br />in the Bonds to the contrary notwithstanding. This subsection is subject to the condition that if at <br />any time after the entire principal amount of the unpaid Bonds and the accrued interest thereon <br />shall have been so declared due and payable and before any judgment or decree for the payment <br />of the moneys due shall have been obtained or entered, the City shall deposit with the Trustee a <br />sum sufficient to pay the unpaid principal amount of the Bonds due prior to such declaration and <br />the accrued interest thereon, with interest such overdue installments at the rate or rates applicable <br />thereto in accordance with their terms, and the reasonable fees and expenses of the Trustee, and <br />any and all other defaults known to the Trustee (other than in the payment the entire principal <br />amount of the unpaid Bonds and the accrued interest thereon due and payable solely by reason of <br />such declaration) shall have been made good or cured to the satisfaction of the Trustee or provision <br />deemed by the Trustee to be adequate shall have been made therefor, then and in every such case <br />the Trustee, by written notice to the City, may rescind and annul such declaration and its <br />consequences; but no such rescission and annulment shall extend to or shall affect any subsequent <br />default or shall impair or exhaust any right or power consequent thereon. <br />SECTION 10.02. Proceedings by Trustee. Upon the happening and continuance of <br />any Event of Default the Trustee in its discretion may, and at the written request of the Owners of <br />38 <br />55394.00068\42092121.3 <br />
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