Resolution No. 4624 - Laserfiche WebLink

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2.2 Pledge. The City hereby pledges the Security to the payment of principal of, premium (if any) and interest on all Bonds. In addition, the City hereby pledges the Net Revenues available for deposit in the Bond Reserve Account to pay amounts due under any Reserve Credit Facility. Pursuant to ORS 288.594, these pledges hereby made by the City shall be valid and binding from the time of the adoption of this Master Resolution. The amounts so pledged and hereafter received by the City shall immediately be subject to the lien of such pledge without any physical delivery or further act, and, except as provided in the next sentence, the lien of the pledge shall be superior to all other claims and liens whatsoever to the fullest extent permitted by ORS 288.594(2). The lien of the Bonds on the Security shall be subordinate to the lien of the Series 1988 Bonds until the Series 1988 Bonds are paid. At closing of the Series 2000 Bonds, the City shall deposit sufficient funds to redeem and pay all then outstanding Series 1988 Bonds with the paying agent for the Series 1988 Bonds. Section 3. Bond Funds and Accounts 3.1 Obligation to Maintain Accounts. So long as Bonds are Outstanding, the City shall maintain the Airport Debt Service Fund and the Bond Reserve Account as discrete accounts in the Municipal Airport Fund. If the City issues Subordinate Obligations, the City shall create and maintain a Subordinate Obligations Account in the Municipal Airport Fund for as long as Subordinate Obligations are Outstanding. 3.2 Airport Debt Service Fund. The Airport Debt Service Fund shall be held by the City. Until all Bonds are paid or defeased, amounts in the Airport Debt Service Fund shall be used only to pay Bonds. On each Transfer Date the City shall transfer to the Airport Debt Service Fund Net Revenues in an amount sufficient to pay all Bond principal, interest and premium, if any, which are due on the following Payment Date. 3.3 Bond Reserve Account. Amounts credited to the Bond Reserve Account shall be used only to pay Bonds, and only if Net Revenues in other accounts of the Municipal Airport Fund are insufficient. (A) If, on any Transfer Date the Net Revenues available for transfer to the Airport Debt Service Fund pursuant to Section 2.1 (B) are not sufficient to pay all Bond principal, interest and premium which are due on the following Payment Date, the City shall transfer the amount of the deficiency from the Bond Reserve Account to the Airport Debt Service Fund on that Transfer Date. (B) If an amount is withdrawn from the Bond Reserve Account pursuant to Section 3.3(A), the City shall make substantially equal semi-annual transfers of Net Revenues to the Bond Reserve Account on each Transfer Date, beginning as soon as practicable and not later than the first Transfer Date which is at least seven months after the date of the withdrawal, and continuing until the balance in the Bond Reserve Account is equal to the Reserve Requirement. Each transfer shall be in an amount at least equal to one-third of the sum of the amount which is withdrawn from the Bond Reserve Account plus any interest, fees or penalties owed under a Reserve Credit Facility. Page 7 - Resolution March 23. 2000