Resolution No. 4523 - Laserfiche WebLink

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Section 4. Pledge of Available Sewer Revenues 4.1. The City hereby pledges the Available Sewer Revenues and the proceeds of revenue obligations described in Section 4.3 to pay the Bonds. Available Sewer Revenues shall be used to pay Bonds only if amounts in the Fund are insufficient. The pledge of the Available Sewer Revenues shall be on a parity with all obligations which the City has issued, or may issue in the future, to finance the River Road/Santa Clara Sewer Project and for which Available Sewer Revenues are pledged. The pledge of the Available Sewer Revenues shall be subordinate to all other outstanding and future revenue bonds, notes and other obligations of the City which are secured by its sewer revenues. 4.2. If the City pays Debt Service on the Bonds from Available Sewer Revenues under Section 4.1, the City may reimburse itself for that payment, without interest, from Assessments received by the City after the deposit, but only if the balance in the Reserve Account at the time of the reimbursement is at least equal to the Reserve Requirement. 4.3. The City hereby covenants with the Owners that it shall charge rates and fees in connection with its sewage treatment and collection facilities which generate Available Sewer Revenues sufficient to enable it to pay, when due, all costs of operation, maintenance, Debt Service, other contractual obligations, and any and all reasonable predictable payments which may be required under Section 4.1. In addition, the City covenants that it will use its best efforts to issue revenue obligations, payable solely from its net sewer revenues, in amounts sufficient to permit it to make, when due (or as soon thereafter as possible), any payments which are required by Section 4.1, for which the Available Sewer Revenues are not then sufficient. Section 5. Delinquent Assessments; Payments in Lieu of Foreclosure. 5.1. The City covenants with the owners of the Bonds to pursue property foreclosures to collect delinquent Assessments as rapidly as the law reasonably permits, and in accordance with the foreclosure policies which are no less strict than the foreclosure policies of the City which would apply to Basins S, U and X on the date this Resolution is adopted. However, the City may elect not to foreclose or to pursue foreclosures less rapidly than required by this Section, if the City: 5.1.1. identifies the Assessments to which the election applies; and 5.1.2. deposits into the Fund any payments associated with the Assessments to which the election applies and which are delinquent at the time the election is made, and continues to deposit into the Fund in a timely manner the amounts which would have been deposited into the Fund if such Assessments were not delinquent. 5.2. Amounts received by the City from the settlement or foreclosure of delinquent Assessments shall be applied in the following order of priority: 5.2.1. If the City has made deposits under Section 5.1.2 in connection with a Page 4 Resolution J:\HWR\CITIES\EUGENE\GENERAL\SABURES.DOC