Common use of Credit Enhancement/Liquidity Facilities Clause in Contracts

Credit Enhancement/Liquidity Facilities. (A) In connection with any Series of Bonds issued or to be issued hereunder, or any Qualified Hedge Agreement, the Trust may obtain or cause to be obtained Credit Enhancement or a Liquidity Facility providing for the payment of all or a portion of the principal, premium, or interest due or to become due on such Bonds or the Qualified Hedge Payments payable by the Trust on such Qualified Hedge Agreement or providing for the purchase of such Bonds or a portion thereof by the issuer of any such Credit Enhancement or Liquidity Facility. In connection therewith the Trust may enter into such agreements with the issuer of such Credit Enhancement or Liquidity Facility providing for, inter alia: (1) the payment of fees, charges and expenses of the issuer in connection with such Credit Enhancement or Liquidity Facility which fees, charges and expenses may be Costs of Issuance or Administrative Expenses; and (2) the terms and conditions of such Credit Enhancement or Liquidity Facility and the Series of Bonds affected thereby. (B) The Trust may secure any Credit Enhancement or Liquidity Facility pertaining to a Series of Bonds secured thereby by an agreement providing for the purchase of such Bonds with such adjustments to the rate of interest, method of determining interest, maturity, or redemption provisions as specified in the applicable Supplemental Trust Agreement. The Trust may also agree with the issuer of any Credit Enhancement or Liquidity Facility to reimburse such issuer from amounts held hereunder or otherwise legally available to the Trust for amounts paid under the terms of such Credit Enhancement or Liquidity Facility together with interest thereon (herein referred to as a “Reimbursement Obligation”). Any Reimbursement Obligation may be secured by a lien on the Trust Estate on a parity with the lien created hereby for the benefit of the related Series of Senior Bonds Outstanding or Subordinate Bonds Outstanding, as applicable, hereunder and, to the extent provided in Section 2.11 hereof, for the benefit of the Hedge Provider of any Parity Hedge Agreement hereunder, subject only to the provisions of this Trust Agreement permitting the application of the Trust Estate for the purposes and on the terms and conditions set forth herein and in the applicable Supplemental Trust Agreement. To the extent provided in the applicable Supplemental Trust Agreement, upon the payment of amounts under any Credit Enhancement which is secured by a lien on the Trust Estate on a parity with the lien created hereby for the related Series of Senior Bonds or Subordinate Bonds, any Reimbursement Obligation arising therefrom may be deemed a Senior Bond Outstanding or Subordinate Bond Outstanding, hereunder, as applicable, or, in the case of any Reimbursement Obligation arising from Credit Enhancement on any Parity Hedge Agreement, a Scheduled Hedge Payments thereon payable in either case from the Senior Debt Service Fund on a parity with the Senior Bonds or the Subordinate Debt Service Fund on a parity with the Subordinate Bonds.

Credit Enhancement/Liquidity Facilities. (Aa) In connection with any Series of Bonds issued or to be issued hereunder, or any Qualified Hedge Agreement, the Trust Authority may obtain or cause to be obtained Credit Enhancement or a Liquidity Facility providing for the payment of all or a portion of the principal, premium, or interest due or to become due on such Bonds or the Qualified Hedge Payments payable by the Trust Authority on such Qualified Hedge Agreement or providing for the purchase of such Bonds or a portion thereof by the issuer of any such Credit Enhancement or Liquidity Facility. In connection therewith the Trust Authority may enter into such agreements with the issuer of such Credit Enhancement or Liquidity Facility providing for, inter alia: (1i) the payment of fees, charges and expenses of the issuer in connection with such Credit Enhancement or Liquidity Facility which fees, charges and expenses may be Costs of Issuance or Administrative ExpensesBond Related Costs; and (2ii) the terms and conditions of such Credit Enhancement or Liquidity Facility and the Series of Bonds affected thereby. (Bb) The Trust Authority may secure any Credit Enhancement or Liquidity Facility pertaining to a Series of Bonds secured thereby by an agreement providing for the purchase of such Bonds with such adjustments to the rate of interest, method of determining interest, maturity, or redemption provisions as specified in the applicable Applicable Supplemental Trust Agreement. The Trust Authority may also agree with the issuer of any Credit Enhancement or Liquidity Facility to reimburse such issuer from amounts held hereunder or otherwise legally available to the Trust Authority for amounts paid under the terms of such Credit Enhancement or Liquidity Facility together with interest thereon (herein referred to as a “Reimbursement Obligation”). Any Reimbursement Obligation may be secured by a lien on the Trust Estate on a parity with the lien created hereby for the benefit of the related Series of Senior Bonds Outstanding or Subordinate Subordinated Bonds Outstanding, as applicable, hereunder and, to the extent provided in Section 2.11 211 hereof, for the benefit of the Hedge Provider of any Parity Hedge Agreement hereunder, subject only to the provisions of this Trust Agreement permitting the application of the Trust Estate for the purposes and on the terms and conditions set forth herein and in the applicable Applicable Supplemental Trust Agreement. To the extent provided in the applicable Applicable Supplemental Trust Agreement, upon the payment of amounts under any Credit Enhancement Enhancement, other than a Reserve Credit Facility, which is secured by a lien on the Trust Estate on a parity with the lien created hereby for the related Series of Senior Bonds or Subordinate Subordinated Bonds, any Reimbursement Obligation arising therefrom may be deemed a Senior Bond Outstanding or Subordinate Subordinated Bond Outstanding, hereunder, as applicable, or, in the case of any Reimbursement Obligation arising from Credit Enhancement on any Parity Hedge Agreement, a Scheduled Hedge Payments Payment thereon payable in either case from the Senior Debt Service Fund on a parity with the Senior Bonds or the Subordinate Subordinated Debt Service Fund on a parity with the Subordinate Subordinated Bonds. Except as otherwise provided in the Applicable Supplemental Trust Agreement, any Reimbursement Obligation arising upon the payment of amounts under any Reserve Credit Facility shall be payable from amounts deposited in the related Senior Debt Service Reserve Fund pursuant to Section 504(b)(ii) hereof or Subordinated Debt Service Reserve Fund pursuant to Section 504(b)(v) hereof.