Issuance of Subordinate Indebtedness Sample Clauses

Issuance of Subordinate Indebtedness. The Municipality shall have the right to issue Subordinate Indebtedness for any lawful purpose related to the operation of and benefiting the Utility and to provide that the Debt Service Requirements on such Subordinate Indebtedness shall be payable out of the Net Revenues, provided that, at the time of the issuance of such Subordinate Indebtedness, the Municipality shall not be in default in the performance of any covenant or agreement contained in the Bond Resolutions (unless such Subordinate Indebtedness shall be issued to cure such default and shall be junior and subordinate to the Parity Indebtedness) so that if at any time the Municipality shall be in default in paying either interest on or principal of the Parity Indebtedness, or the Municipality is in default in payment of Current Expenses, Debt Service Requirements on Parity Indebtedness or transfers required by the Bond Resolutions prior to the payment of Debt Service Requirements on Subordinate Indebtedness; the Municipality shall make no payments of Debt Service Requirements on such Subordinate Indebtedness until such default is cured.