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<br />e
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<br />e
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<br />8.06. Determination of Avera~e Annual Princioal and Interest Reauirements. With reference to Additional
<br />Bonds anticipated and estimated to be issued or incurred, the Average Annual Principal and Interest Requirements
<br />therefor shall be those reasonably estimated and computed by the officer of the Authority then having the primary
<br />responsibility for the fmancial affairs of the Authority. In the preparation of the report required in clause (c)(i)
<br />above, the Engineer of Record may rely on other experts or professionals, including those in the employment of the
<br />Authority, provided such reports disclose the extent of such reliance and concludes it is reasonable so to rely. In
<br />connection with the issuance of Additional Bonds for Capital Additions, the certificate of the Authority's officer and
<br />the Engineer of Record, together with the appropriate report for the initial issue and the Forecast for a subsequent
<br />issue, shall be conclusive evidence and the only evidence required to show compliance with the provisions and
<br />requirements of this section.
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<br />8.07. Combined Issues. Parity Bonds for Capital Additions may be combined in a single issue with Parity
<br />Bonds, as the case may be, for Capital Acquisitions or Capital Improvements, or for any lawful purpose, provided
<br />the conditions precedent set forth in clauses (b) through (e) are complied with as the same relate to the appropriate
<br />purpose.
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<br />8.08. Reserve Fund. The Authority shall increase the Reserve Fund for such Additional Bonds by (i)
<br />providing cash from the proceeds of sale of the Additional Bonds or any other lawfully available source, (ii) a surety
<br />bond in lieu thereof, (iii) a combination of such cash and surety bond, or (iv) making equal monthly installment
<br />payments to the Reserve Fund over the 24 month period following the issuance of such Additional Bonds, all as the
<br />Authority deems reasonable and appropriate; provided, however, that (A) the amount of any such cash, the coverage
<br />of any surety bond in lieu thereof, the amount of such cash and the coverage of such surety bond, and the sum of the
<br />monthly payments when added together shall at least equal the Reserve Requirement; (B) any such surety bond
<br />provided in lieu of cash shall be issued by an insurance company or association of companies whose insured
<br />obligations are rated by a nationally recognized rating agency in its highest rating categories; and (C) any such
<br />surety bond may be written (or amended) to provide coverage not only for such Additional Bonds but also pro rata
<br />for the Parity Bonds then outstanding, provided, any existing cash or surety fund in lieu thereof which secures any
<br />such outstanding Parity Bonds is extended ratably to secure the Additional. Bonds then being issued. It is the
<br />Authority's intention hereby to provide maximum flexibility with respect to the Reserve Fund to be provided for any
<br />Additional Bonds which may be issued hereafter and the foregoing provisions shall be liberally construed in order to
<br />achieve that objective without materially'prejudicing the rights and interests of the owners ofany Parir'j Bonds at the
<br />time outstanding.
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<br />8.09. Subordinate Obligations. The Authority may, at any time and from time to time, for any lawful
<br />purpose, issue obligations, the principal of and redemption premium, if any, and interest on which are payable from
<br />and secured by a pledge of and lien on the Pledged Revenues junior and subordinate to the lien and pledge created
<br />hereby for the security of the Parity Bonds, the payments required to be made hereunder into the Interest and
<br />Sinking Fund and the Reserve Fund; provided, however, that any such pledge and lien securing such subordinate
<br />obligations shall be, and shall be expressed to be, subordinate in all respects to the pledge of and lien on the Pledged
<br />Revenues as security for the Parity Bonds.
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<br />Section 9. REPRESENTATIONS AND COVENANTS OF THE AUTHORITY. The Authority covenants,
<br />warrants, and agrees that in accordance with and to the extent required or permitted by law while the Parity Bonds
<br />are outstanding and unpaid:
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<br />9.01. General Covenants. (a) Performance. It will faithfully perform at all times any and all covenants,
<br />undertakings, stipulations, and provisions contained in each Parity Bonds Resolution, and in each and every Parity
<br />Bond; it will promptly payor cause to be paid the principal of and interest on every Parity Bond, on the dates and in
<br />the places and manner prescribed in the Parity Bonds Resolutions; and it will, at the times and in the manner
<br />prescribed, deposit or cause to be deposited the amounts required to be deposited into the Bond Fund and the
<br />Reserve Fund; and any holder of the Parity Bonds may require the Authority, its officials and employees to carry
<br />out, respect, or enforce the covenants and obligations of the Parity Bonds Resolutions by all legal and equitable
<br />means, including specifically, but without limitation, the use and filing of mandamus proceedings in any court of
<br />competent jurisdiction against the Authority, its officials and employees.
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