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.
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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:
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