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<br />Bonds, so that the Refunding Bonds satisfy the requirement of Section 142(a)(1) of the Code <br />(relating to exempt facility bonds for airports). <br /> <br />The City Official may enter into covenants on behalf of the City to protect the tax- <br />exempt status of the Refunding Bonds. <br /> <br />Section 15. Escrow. <br /> <br />The net proceeds of the Refunding Bonds shall be placed in irrevocable escrow, <br />pursuant to the Escrow Deposit Agreement. The escrow agent or the City Official is hereby <br />authorized to subscribe for and purchase the government obligations to be placed in the escrow, <br />on behalf of the City. <br /> <br />Section 16. Redemption of Refundable Bonds. <br /> <br />Contingent solely on the issuance of the Refunding Bonds and the deposit of <br />sufficient proceeds with the Escrow Agent, the City hereby irrevocably calls for redemption all of <br />the then outstanding Refundable Bonds on January 1, 1998. <br /> <br />Section 17. Defeasance. <br /> <br />If the City: <br /> <br />17.1. irrevocably deposits money or noncallable Government Obligations in escrow witl.t <br />an independent trustee or escrow agent which are calculated to be sufficient for the payment of <br />Refunding Bonds which are to be defeased; and, <br /> <br />17.2. files with the escrow agency or trustee an opinion from a qualified consultant to the <br />effect that the money and the principal and interest to be received from the Government <br />Obligations are calculated to be sufficient, without further reinvestment, to pay the defeased <br />Refunding Bonds when due; and, <br /> <br />17.3. files with the escrow agent or trustee an opinion of nationally recognized bond <br />counsel that the proposed defeasance will not cause the interest component of the Refunding <br />Bonds to be includable in gross income under the Code; <br /> <br />then the City shall be obligated to pay the defeased Refunding Bonds solely from the money and <br />Government Obligations deposited with the escrow agent or trustee, and the City shall have no <br />further obligation to pay the defeased Refunding Bonds from any source except the amounts <br />deposited in the escrow. For purposes of this section, "Government Obligations". means direct <br />obligations of the United States, or obligations the principal of and interest on which are fully and <br />unconditionally guaranteed by the United States. <br /> <br />Page 7 - Resolution <br /> <br />J:\RDR\EUGENE.Cfl\ADV-REF.97\RES.DOC <br />