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1989-046
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1989-046
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Last modified
6/25/2021 1:40:10 PM
Creation date
2/4/2021 9:58:00 AM
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Resolutions
Resolution Number
1989-046
Approved Date
05/02/1989
Subject
Amend & restate Resolution 89-19 - providing for issuance of $7,500,000 water & sewer revenue
refunding bonds, Series 1989
Document Relationships
1989-019
(Agenda)
Path:
\Resolutions\1980'S\1989
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the full original amount available under the Reserve <br />Account Credit Instrument and the amount then available <br />for further draws or claims. In the event (a) the <br />issuer of a Reserve Account Credit Instrument becomes <br />insolvent, or (b) the issuer of a Reserve Account Credit <br />Instrument defaults in its payment obligations <br />thereunder, or (c) the rating of the claims paying <br />ability of the issuer of the insurance policy or surety <br />bond falls below "AAA" or "Aaa", by S&P or Moody's, <br />respectively, or (d) the rating of the issuer of the <br />letter of credit falls below "AA" by S&P, the obligation <br />to reimburse the issuer of the Reserve Account Credit <br />Instrument shall be subordinate to the cash <br />replenishment of the Reserve Account. <br />(4) In the event (a) the revolving reinstatement <br />feature described in the preceding subparagraph (3) is <br />suspended or terminated, or (b) the rating of the claims <br />paying ability of the issuer of the surety bond or <br />insurance policy falls below "AAA" or "Aaa", by S&P or <br />Moody's, respectively, or (c) the rating of the issuer <br />of the letter of credit falls below "AA" by S&P, the <br />Issuer shall either (i) deposit into the Reserve Account <br />an amount sufficient to cause the cash or permitted <br />investments on deposit in the Reserve Account to equal <br />the Reserve Account requirement on all outstanding <br />Bonds, such amount to be paid over the ensuing five <br />years in equal installments deposited at least semi- <br />annually or (ii) replace such instrument with another <br />Reserve Account Credit Instrument within six months of <br />such occurrence. In the event (a) the rating of the <br />claims -paying ability of the issuer of the surety bond <br />or insurance policy falls below "A or (b) the rating <br />of the issuer of the letter of credit falls below "A", <br />or (C) the issuer of the Reserve Account Credit <br />Instrument defaults in its payment obligations <br />hereunder, or (d) the issuer of the Reserve Account <br />Credit Instrument becomes insolvent, the County shall <br />either (i) deposit into the Reserve Account an amount <br />sufficient to cause the cash or permitted investments <br />on deposit in the Reserve Account to equal the Reserve <br />Account requirement on all outstanding Bonds, such <br />amount to be paid over the ensuing year in equal <br />installments on at least a monthly basis, or (ii) <br />replace such instrument with another Reserve Account <br />Credit Instrument within six months of such occurrence. <br />- 37 - <br />
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