Taxable Differential. Upon the occurrence of a Determination of Taxability, the Series 2019A Bond shall bear interest at the Taxable Rate from the Taxable Date and this adjustment shall survive payment of the Series 2019A Bond until such time as the federal statute of limitations under which interest thereon could be declared taxable under the Code shall have expired. The City hereby agrees to pay the Taxable Differential to the Holder on the next scheduled Interest Payment Date or, if the Series 2019A Bond has matured, within thirty (30) days after receipt of written demand by the Lender or such other Holder. “Taxable Differential” is defined to be: (i) an amount equal to the positive difference between (A) the amount of interest accrued but unpaid on the Series 2019A Bond at the Taxable Rate from the Taxable Date and to the next scheduled Interest Payment Date (or, if the Series 2019A Bond has matured, to the Final Maturity) minus (B) the amount of interest that was actually paid on the Series 2019A Bond from the Taxable Date and to the next scheduled Interest Payment Date (or, if the Series 2019A Bond has matured, to the Final Maturity), plus (ii) an amount equal to any penalties on overdue interest and additions to tax (as referred to in Subchapter A of Chapter 68 of the Code) owed by the Holder as a result of the occurrence of a Determination of Taxability. After the above-described next scheduled Interest Payment Date, and for so long as the Taxable Rate remains in effect, the outstanding amount of the Series 2019A Bond shall continue to bear interest at the Taxable Rate to be payable on the ensuing Interest Payment Dates. The Taxable Differential, if any, owed by the City shall be secured under the Covenant Ordinance as provided in Section 3.1 herein on a parity with the Series 2019A Bond and other Parity Debt.
