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HomeMy WebLinkAbout2155 ResolutionCITY OF PASCO, WASHINGTON RESOLUTION NO. 2155 A RESOLUTION relating to the City's Water and Sewer Revenue Bonds, 1994, adopting express terms and conditions required by the Reserve Insurer as provided in Section 22 of Ordinance No. 3054. WHEREAS, Section 22 of Ordinance No. 3054 adopted by reference the terms and conditions relating to Reserve Insurance contained in the commitment of the Reserve Insurer (Municipal Bond Investors Assurance Corporation) of the Bonds, and authorized specific language required by the Bond Insurer to be adopted by resolution; and WHEREAS, the Bond Insurer has requested certain language affirming the City's commitment to carry out the terms and conditions relating to the Reserve Insurance adopted by that Section 22; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, that the following terms, conditions and covenants are adopted to comply with the Reserve Insurance (and the Financial Guaranty Agreement) of the Reserve Insurer under Ordinance No. 3054: 1. Any deficit in the Reserve Requirement shall be made up from the first available money (under Section 15) within one year. 2. The rate covenant (Section 16(c)) includes the pledge to maintain rates and charges to produce Net Revenue of the Waterworks Utility sufficient, together with ULID Assessments, to pay all amounts owed to the Reserve Insurer under the Reserve Insurance and related documents. 1k I 0158638 01 City Atteirney 0158638 01 3. Provision must be made to pay all amounts owed to the Reserve Insurer under the terms of the Reserve Insurance and related documents before the City's obligations under Ordinance No. 3054 and this resolution shall terminate. 4. The City requests the Fiscal Agency to maintain adequate records, verified with the Reserve Insurer, on the amounts available to be drawn at any given time under the Reserve Insurance and on the amounts paid and owing to the Insurer under the terms of the Financial Guaranty Agreement. 5. There may be no optional redemption of Bonds or distribution of funds to the City and/or any underlying obligor unless all amounts owed to the Reserve Insurer under the terms of the Financial Guaranty Agreement or any other documents have been paid in full. 6. As long as the Bond Insurance and Reserve Insurance remain in effect, refunding or defeasance of the Bonds shall be carried out only with the use of cash and direct obligations of the United States of America. References to sections and use of capitalized terms, unless otherwise specified, shall be the sections and terms used in Ordinance No. 3054. ADOPTED at a regular open public meeting of the City Council of the City of Pasco, Washington, this 21st day of November, 1994. Mayor ATTEST: City Clerk APPROVED AS TO FORM: -2-