1999-09-08 Special Called Regular Meeting, Public Hearing, and Workshop Meeting

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e e First: to the Bond Fund, when and in the amounts required by any Parity Bonds Resolution; Second: to the Reserve Fund, when and in the amounts required by any Parity Bonds Resolution; Third: to the payment of principal, interest and reserve fund requirements for any obligations which hereafter may be issued by the Board that are payable from and secured by a lien on and pledge of the Pledged Revenues which is subordinate to the liens of the Parity Bonds, when and in the amounts required by any resolution authorizing the issuance of such subordinate lien obligations; and Fourth: for any lawful purpose. Section 8. ADDITIONAL BONDS. In addition to inferior lien bonds permitted to be issued hereunder, the Authority expressly reserves the right hereafter to issue Additional Bonds, and the Additional Bonds, when issued, may be secured by and payable from a lien on and pledge of the Pledged Revenues in the same manner and to the same extent as the outstanding Parity Bonds but subject to the remaining provisions hereof, and the Bonds and the Additional Bonds may be in all respects of equal dignity. The Additional Bonds may be issued to provide funds for Capital Acquisitions, Capital Additions, and Capital Improvements, and for any other lawful purpose. It is provided, however, that no Additional Bonds shall be issued unless such Additional Bonds are made to mature on March 15 in each of the years in which they are scheduled to mature, and the following requirements are met . 8.01. Conditions Precedent for Issuance of Additional Bonds - General. As a condition precedent to the issuance of any Additional Bonds, the officer of the Authority then having the primary responsibility for the financial affairs of the Board shall hay~ executed a certificate stating (i) that the Authority is not then in default as to any covenant, obligation, or agreement contained in any proceeding relating to any obligations of the Authority payable from and secured by a lien on and pledge of the Pledged Revenues and (ii) all payments into all funds or accounts created and established for the payment and security of all outstanding obligations payable from and secured by a lien on and pledge of the Pledged Revenues have been made in full and that the amounts on deposit in such funds or accounts are the amounts then required to be deposited therein. Such certificate shall be dated as of the date of such Additional Bonds. 8.02. Conditions Precedent for Issuance of Additional Bonds - Caoital ACQuisitions. Caoital Improvements. and anv other lawful DUfllOse exceot for Caoital Additions or for refunding. The Authority covenants and agrees that Additional Bonds will not be issued for the purpose of financing Capital Acquisitions, Capital Improvements, or any other lawful purpose (except for Capital Additions or for refunding, which are to be issued in accordance with the provisions of clauses (c), (d), or (e) of this Section) unless and until the conditions precedent in clause (a) above have been satisfied and, in addition thereto, the Authority has secured a certificate or opinion of the Accountant to the effect that, according to the books and records of the Authority, the Net Revenue for the preceding Year or for 12 consecutive months out of the 15 months immediately preceding the month the order or resolution authorizing the Additional Bonds is adopted are at least equal to the sum of 1.25 times the Average Annual Principal and Interest Requirements for the outstanding Parity Bonds and for the proposed Additional Bonds. In making a determination of the Net Revenue, the Accountant may (i) take into consideration a change in the rates and charges for services and facilities afforded by the System that became effective at least 60 days prior to the last day of the period for which Net Revenue are determined and (ii) for purposes of satisfying the above Net Revenue test, make a pro forma determination of the Net Revenue for the period of time covered by his certification or opinion based on such change in rates and charges being in effect for the entire period covered by the Accountant's certificate or opinion. In addition, the revenues and expenses of any Capital Acquisition may be added to the Net Revenue of the Authority for determinations made under this section. 8.03. Conditions Precedent for Issuance of Additional Bonds - Capital Additions: Initial Issue. The Authority covenants and agrees that Additional Bonds will not be issued for the purpose of fmancing Capital Additions, unless the same conditions precedent specified in clause (a) above have been satisfied and, in addition thereto, the conditions precedent specified in clause (b) above are satisfied or, in the alternative, the Authority shall have obtained: 16