Ordinance 2587-02 - Laserfiche WebLink

Bank under which the District will be required to reimburse the Bank (or cause the Bank to be reimbursed) for draws on the Letter of Credit made by the Issuing and Paying Agent to pay the Notes as they come due from time to time under the commercial paper program. Those reimbursements will be made, first, from the proceeds of sale of additional refunding Notes as the outstanding Notes are "rolled over" during the construction period of the Project and, secondly, if and to the extent required, from funds provided by the District. In addition, as a further condition to the issuance by the Bank of the Letter of Credit securing the Project Notes, the Reimbursement Agreement requires the District to obtain additional credit support from the City for the District's reimbursement obligations to the Bank with respect to the Project Notes. The District's reimbursement obligations with respect to the Project Notes consist of an amount equal to the outstanding principal amount of the Project Notes, not more than 270 days of interest thereon calculated from time to time at a rate of not more than 8% per annum, and Letter of Credit fees payable to the Bank allocable to the Bank's commitment with respect to the Project Notes (the"Project Notes Reimbursement Obligations"). 4.1.2.1 To enable the District to obtain the Letter of Credit for the Project Notes, the City shall lend to the District money by advancing such money to the Bank on behalf of the District in an amount sufficient, together with payments by the District and other money on deposit with the Issuing and Paying Agent held for the account of the Bank with respect to the Project Notes Reimbursement Obligations, to pay in full the Project Notes Reimbursement Obligations when due under the terms of the Reimbursement Agreement, and the District agrees to borrow such amounts from the City pursuant to this Agreement for that purpose. Any such loan shall be made at such time or times, if any, as the money available to the Issuing and Paying Agent is insufficient to pay in full to the Bank the Project Notes Reimbursement Obligations then due, and shall be disbursed by the City directly to the Bank, for the account of the District, in payment of those outstanding Project Notes Reimbursement Obligations, regardless of whether the District requests or instructs the City to make such disbursement. The District shall notify the City immediately upon the District's receipt of notice or any actual knowledge that any such insufficiency is expected to occur or has occurred. At the discretion of the City, any such loan need not be made in a manner to cause draws on the Letter of Credit made to pay the Project Notes to be reimbursed to the Bank immediately but in all events shall be made so that all Project Notes Reimbursement Obligations are paid in full not later than the earlier of one year after the draw on the Letter of Credit to which the obligation relates or the expiration date of the Letter of Credit. The District shall be responsible for any interest that accrues on the Project Notes Reimbursement Obligations under the terms of the Reimbursement Agreement, and the loan from the City shall include the amount of such interest. The obligation of the City to advance money to the Bank on behalf of the District in the amounts, at the times and in the manner described herein shall be absolute and unconditional, and shall not be subject to any defense, including without limitation breach by the District of any provision of this Agreement, diminution by setoff, counterclaim, abatement or otherwise. The City pledges its full faith, credit and resources irrevocably for the payment to the Bank, on behalf of the District, of the amounts described herein. The City agrees that it will include in its budget for each fiscal year during the term of this Agreement and appropriate an amount equal to the -5- INTERLOCAL FINANCING AGREEMENT 200203010080