Additional Parity Obligations Clause Samples
Additional Parity Obligations. Other than additional Senior Obligations, the District will not incur any obligations payable from Net Revenues superior to the payment of the 2010 Installment Payments, although the District may at any time execute and deliver any Parity Obligation to refund existing Installment Sale Agreements that results in gross debt service savings. Furthermore, the District may any time execute and deliver any Parity Obligation to finance any Water System Project, the Debt Service on which Parity Obligation is payable on a parity with the payment by the District of the 2010 Installment Payments from the Net Revenues, if
(a) The Subordinate Net Revenues for the most recently audited Fiscal Year of the District, or as shown by the books of the District for any more recent twelve (12) month period selected by the District, including adjustments to give effect to increases in charges, fees, rates or tolls for the use of the Water System approved and in effect as of the date of calculation (in an amount equal to per cent ( %) of the estimated additional Net Revenues for such Fiscal Year if such increase had been in effect during the whole of such Fiscal Year), shall have produced a sum equal to at least one hundred ten per cent (110%) of the average Annual Debt Service as computed by the District for the first five (5) Fiscal Years following the latest Date of Operation of any uncompleted Water System Project; and
(b) The Water System Project to be financed with the proceeds of such Parity Obligation is technically feasible and the estimated cost of the acquisition and construction thereof is reasonable, and (after giving effect to the completion of all uncompleted Water System Projects) the charges, fees, rates or tolls estimated to be fixed and prescribed for the use of the Water System for each Fiscal Year from the Fiscal Year in which such Parity Obligation is executed and delivered to and including the first complete Fiscal Year after the latest Date of Operation of all uncompleted Water System Projects are economically feasible and reasonably considered necessary, based on projected operations for such period, all as determined by the District; provided, that notwithstanding the foregoing, no such Parity Obligation shall be executed and delivered if an Event of Default of the District hereunder shall have occurred and shall be then continuing.
Additional Parity Obligations. Except as provided below, the City may incur no obligations payable from the Net Revenues (including Unconditional Output Contracts), unless such obligations are expressly made payable on a junior and subordinate basis to the payment of the Series 2021 Note. Parity debt obligations payable on a parity basis to the Series 2021 Note (the "Parity Obligations") may be issued upon satisfaction of the following conditions:
(1) There shall have been obtained and filed with the City Clerk a certificate of the Finance Director stating: (i) that the audited books and records of the City relative to the Net Revenues for the most recently audited fiscal year (the "Test Period") have been reviewed by the Finance Director and that the amount of the Net Revenues adjusted as provided in paragraph (2) below, is equal to not less than 1.20x the maximum debt service becoming due in any year thereafter on all debt payable from the Net Revenues and on the Parity Obligations.
(2) Upon recommendation of the Qualified Independent Consultants, the Net Revenues in the previous paragraph may be adjusted for purposes of this section by including: (i) 100% of the additional Net Revenues which in the opinion of the Qualified Independent Consultant would have been derived by the City from rate increases adopted and in effect before the issuance of the Parity Obligations, if such approved rate increases had been implemented during the Test Period, and (ii) 100% of the additional Net Revenues estimated by the Qualified Independent Consultant to be derived during the first full 12 month period after the facilities financed with proceeds of the proposed Parity Obligations are placed in service.
(3) For purposes of this section 10.F., "Net Revenues" shall not include (i) any proceeds from the sale of assets of the System, (ii) proceeds of insurance or emergency assistance grants, or (iii) other extraordinary or non-recurring items or gains.
Additional Parity Obligations. So long as any of the principal components of the Payments remain unpaid and unprovided for, City will not further encumber all or any part of the revenues from the Excise Taxes and the State Shared Revenues pledged under this Agreement (a) on a basis senior or prior in claim to the payments hereunder, and (b) on a basis equal to the pledge hereunder unless (i) the revenues from the Excise Taxes and the State Shared Revenues received by the City during the last two completed Fiscal Years immediately preceding the incurring of the proposed Additional Parity Obligation shall have amounted to at least three times the highest combined total of the Debt Service requirements for all the outstanding Parity Obligations and all proposed Parity Obligations for any succeeding Fiscal Year, and (ii) City shall certify through its City Manager or other appropriate official that it is not in default in any payment hereunder or with respect to any Parity Obligation or proposed Additional Parity Obligation. As to payments other than Payments under this Agreement, the amount of each such future annual Debt Service shall be established by written certificate of the City Manager. Such obligations may include any long term obligation or deferred payment for property including, without limitation, installment purchase or lease purchase agreements. For the purpose of this Section, payments on installment purchase or lease purchase agreements shall be deemed to include a principal component and an interest component and references in this Agreement to the payment of principal and interest shall include the payment of lease purchase or installment purchase payments.
Additional Parity Obligations. Promptly, but in no event later than five