Additional Bonds Clause Samples
The 'Additional Bonds' clause governs the conditions under which an issuer may issue new bonds in addition to those already outstanding. Typically, this clause outlines specific financial requirements or covenants that must be met before more bonds can be issued, such as maintaining certain debt service coverage ratios or obtaining consent from existing bondholders. Its core function is to protect the interests of current bondholders by ensuring that the issuer does not take on excessive debt that could jeopardize their ability to meet existing obligations.
POPULAR SAMPLE Copied 1 times
Additional Bonds. (a) Additional Bonds may be issued, notwithstanding anything herein to the contrary, on a parity with the 20 Bonds and any other Bonds then outstanding subject to the terms and limitations of this section, to finance or refinance the acquisition or construction of improvements to the Leased Premises, or to refund any of the Bonds.
(b) Upon the execution and delivery of an appropriate supplement to this Indenture, the Authority shall execute and deliver to the Registrar and the Registrar shall authenticate such Additional Bonds and deliver them as may be directed in writing by the Authority. The supplemental indenture shall specify, as to the Additional Bonds, the designation, date, denominations, numbering, interest rate or rates, maturities, redemption provisions, if any, payment provisions, the form of bond and any other appropriate terms. Prior to the delivery by the Registrar of any Additional Bonds, there shall be filed with the Trustee:
(1) a copy, certified by the Secretary-Treasurer of the Authority, of an amendment to the Lease, or a new lease agreement, between the Authority and the Commission, which requires the Commission to pay to the Authority fixed annual rentals in an amount sufficient to pay the principal of and interest on such Additional Bonds;
(2) an executed counterpart of such supplemental indenture, adding to the Trust Estate all rights, titles and interests of the Authority under such amendment to the Lease or such new lease agreement;
(3) a report or a certificate prepared by an independent certified public accountant or an independent financial advisor selected by the Authority supported by appropriate calculations, stating that the Additional Bonds can be amortized, along with the 20 Bonds, from lease rental payments pursuant to the Lease;
(4) a copy, certified by the Secretary-Treasurer of the Authority, of the resolution, adopted by the board of directors of the Authority, authorizing the execution and delivery of such supplemental indenture and such Additional Bonds;
(5) a request and authorization to the Registrar by an officer of the Authority to authenticate and deliver such Additional Bonds to the purchasers therein identified upon payment to the Trustee of the purchase price plus accrued interest to the date of delivery, as specified in the request and authorization; and
(6) an opinion of nationally recognized bond counsel to the effect that the issuance and sale of such Additional Bonds will not result in interest on the...
Additional Bonds. (a) Following the issuance by the Commission of any Subsequent Financing Order or pursuant to remaining authority under the Financing Order, the Issuer may, in its sole discretion but subject to the terms contained in this Section 3.19, acquire additional and separate “securitized property” (as defined in the Act) and issue an Additional Series under any such subsequent indenture that are backed by such separate additional securitized property. Any Additional Series may include terms and provisions unique to such Additional Series.
(b) In addition to all applicable requirements set forth in any subsequent indenture for any Additional Series, the following conditions must be satisfied in connection with any issuance of an Additional Series:
(i) Kentucky Power has existing authority under the Financing Order to issue additional securitized bonds or Kentucky Power requests and receives a Subsequent Financing Order from the Commission to recover additional securitized costs through the issuance of additional securitized bonds;
(ii) Kentucky Power must serve as initial servicer and administrator for such Additional Series and that the servicer and the administrator cannot be replaced without the requisite approval of the holders of all Bonds then-Outstanding;
(iii) satisfaction of the Rating Agency Condition;
(iv) each Additional Series has recourse only to the securitized property created by the Financing Order or any Subsequent Financing Order, as the case may be, and funds on deposit in the trust accounts held by the trustee or securities intermediary under the indenture with respect to such Additional Series, is nonrecourse to the Cost Recovery Property securing the Bonds and does not constitute a claim against the Issuer if revenue from the securitized surcharges and funds on deposit in the trust accounts with respect to such Additional Series are insufficient to pay such other series in full;
(v) the Issuer has provided to the Indenture Trustee and the Rating Agencies then rating any series of the Issuer’s Outstanding Bonds an Opinion of Counsel of a nationally recognized law firm experienced in such matters to the effect that such issuance would not result in the Issuer’s substantive consolidation with Kentucky Power and that there has been a true sale of the securitized property for such Additional Series, subject to the customary exceptions, qualifications and assumptions contained therein;
(vi) transaction documentation for the Additional Series provi...
Additional Bonds. If the proceeds of the Bonds deposited into the Owner Project Account are insufficient to complete the Project and the Issuer determines that Additional Bonds can be marketed on terms acceptable to the Owner, then, at the request of the Owner, the Issuer shall use commercially reasonable efforts to issue Additional Bonds subject to the following conditions:
(a) the Owner executes and delivers to the Issuer an amendment to this Agreement, in form and substance satisfactory to the Issuer and the Trustee, by which Exhibit 1 (Lease Payments) is revised to increase the amounts and timing of the Lease Payments such that the Lease Payments will be sufficient to pay the principal or redemption price of, and interest on, the Owner Proportionate Share of all outstanding Bonds (after giving effect to the issuance of such Additional Bonds) when due, as confirmed by a certificate of a Financial Advisor;
(b) the Contractor and the Owner enter into an amendment to the Guaranteed Savings Agreement to increase the Construction Price accordingly;
(c) the requirements in the Indenture for the issuance of Additional Bonds are met;
(d) the Owner pays all costs of issuance of the Owner Proportionate Share of such costs to the extent not paid out of the proceeds of the Additional Bonds;
(e) the Owner delivers to the Issuer and the Trustee an instrument executed by an authorized representative of FREE in which FREE consents to the issuance of Additional Bonds; and
(f) if the proceeds of such Additional Bonds also will be used to fund the projects of Other Participants, the foregoing conditions are satisfied by each such Other Participants.
Additional Bonds. The Company may from time to time, without the consent of the Holders of the Bonds of the applicable series, create and issue further securities having the same terms and conditions as the Bonds of such series in all respects, except for the original issue date, offering price and, in some circumstances, the initial interest accrual date and initial interest payment date. Additional Bonds of each series issued in this manner will be consolidated with, and form a single series with, the Bonds of such series and shall thereafter be deemed Bonds of such series for all purposes.
Additional Bonds. (a) Additional Bonds may, upon satisfaction of the conditions set forth in this Section 2.3, be issued in the amounts and for the purposes permitted herein. All Additional Bonds shall (i) rank pari passu with the Initial Bonds in all respects (except, with respect to allocation of funds received in connection with any mandatory redemption under Section 3.2(a)(iii) (Mandatory Redemption) to the extent the funds received by the Trustee represent PECO Buy-Out Proceeds, which proceeds shall be applied to the redemption of the Initial Bonds prior to being applied to the redemption of any Additional Bonds), (ii) be secured by the Collateral as set forth in the Security Documents and (iii) be secured by the Indenture Collateral as set forth herein. All Additional Bonds shall bear such date or dates, bear such interest rate or rates, have such maturity dates, redemption dates and redemption premiums, be in such form and be issued at such prices as approved in writing by the Partnership.
(b) Upon (i) satisfaction of the applicable conditions set forth in this Section 2.3, (ii) the execution and delivery of an appropriate Supplemental Indenture in compliance with clause (d) of this Section 2.3, (iii) the execution and delivery of appropriate supplements, amendments or modifications to or of the Financing Documents (in respect of which the consent of the Trustee and the Holders shall not be required; provided, however, if such supplements, amendments or modifications change the rights or obligations of the Trustee, as determined by the Trustee in its sole discretion, the prior written consent of the Trustee shall be required in connection with any such supplements, amendments or modifications) and (iv) receipt by the Trustee of an Officer's Certificate from the Partnership confirming that all conditions precedent to the issuance of Additional Bonds or incurrence of Permitted Indebtedness, as applicable, set forth in this Agreement and the Common Agreement have been satisfied or waived, the Partnership shall execute Additional Bonds and deliver them to the Trustee, and the Trustee, upon the written request of the Partnership, shall authenticate such Additional Bonds and deliver them to the purchasers thereof as may be directed by the Partnership in writing; provided, however, that, notwithstanding anything to the contrary contained herein, no Additional Bonds shall be issued hereunder without the written consent of the Partnership.
(c) Upon the issuance of any Additio...
Additional Bonds. So long as any of the Bonds remain Outstanding, the Authority shall not issue any Additional Bonds or obligations payable from the Base Rental Payments, except pursuant to Sections 3.06 and 3.07 hereof.
Additional Bonds. The Trust Agreement provides that Additional Bonds may be issued within the limitations and provisions of the Trust Agreement. All Bonds issued within the limitations and provisions of the Trust Agreement shall be secured equally and ratably by the Revenues and other moneys pledged by the MDTA, to the extent provided in the Trust Agreement.
Additional Bonds. From time to time, the City may enter into (i) one or more other trust agreements or indentures and/or (ii) one or more agreements supplementing and/or amending this Trust Agreement, for the purpose of providing for the issuance of Additional Bonds to refund the Bonds or to refund all or any portion of any Unfunded Liability under the PERS Contract arising subsequent to the issuance of the Bonds or any other obligations due to PERS. Such Additional Bonds may be issued on a parity with the Bonds.
Additional Bonds. Subject to the provisions of Section 8 of the Bond Resolution for the Project Bonds, the Borrower and the Issuer agree that one or more series of Additional Bonds may be issued pursuant to the Indenture.
Additional Bonds. The Bonds are issued on a parity with the 2021B Bonds as to the pledge of revenues of the System. No bonds or obligations payable out of the revenues of the System may be issued in such manner as to enjoy priority over the Bonds. Additional obligations may be issued if the lien and pledge is junior and subordinate to that of the Bonds. Parity Bonds may be issued only under the following circumstances:
(a) Additional Parity Bonds may be issued for the purpose of completing the Project and for the purpose of financing costs of the Project which are ineligible for payment under the State of Wisconsin Safe Drinking Water Loan Program. However, such additional Parity Bonds shall be in an aggregate amount not to exceed 20% of the face amount of the Bonds; or
(b) Additional Parity Bonds may also be issued if all of the following conditions are met:
(1) The Net Revenues of the System for the Fiscal Year immediately preceding the issuance of such additional bonds must have been in an amount at least equal to the maximum annual interest and principal requirements on all bonds outstanding payable from the revenues of the System, and on the bonds then to be issued, times the greater of (i) 1.10 or (ii) the highest debt service coverage ratio to be required with respect to the Additional Parity Bonds to be issued or any other obligations payable from the revenues of the System then outstanding. Should an increase in permanent rates and charges, including those made to the Municipality, be properly ordered and made effective during the Fiscal Year immediately prior to the issuance of such additional bonds or during that part of the Fiscal Year of issuance prior to such issuance, then Net Revenues for purposes of such computation shall include such additional revenues as a registered municipal advisor, an independent certified public accountant, consulting professional engineer or the Wisconsin Public Service Commission may certify would have accrued during the prior Fiscal Year had the new rates been in effect during that entire immediately prior Fiscal Year.
(2) The payments required to be made into the funds enumerated in Section 6 of this Resolution must have been made in full.
(3) The additional bonds must have principal maturing on May 1 of each year and interest falling due on May 1 and November 1 of each year.
(4) The proceeds of the additional bonds must be used only for the purpose of providing extensions or improvements to the System, or to refund obligations ...