Common use of Parity Debt Clause in Contracts

Parity Debt. In addition to the Loan, the Agency may issue or incur Parity Debt in such principal amount as shall be determined by the Agency. The Agency may issue and deliver any Parity Debt subject to the following specific conditions which are hereby made conditions precedent to the issuance and delivery of such Parity Debt issued under this Section 2.07: (a) No Event of Default shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in this Loan Agreement. (b) The Tax Revenues for the then current Fiscal Year, as set forth in a Written Certificate of the Agency, based on assessed valuation of property in the Project Area as evidenced in the written records of the County, shall be at least equal to one hundred percent (100%) of Maximum Annual Debt Service. (c) The issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue any Parity Debt in the event and to the extent that either (i) the amount of Maximum Annual Debt Service in any Fiscal Year following such issuance exceeds the aggregate amount of Tax Revenues which are eligible under the Redevelopment Plan to be allocated to the Agency in any Fiscal Year, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at any one time. (d) The Agency shall deliver to the City a Written Certificate of the Agency certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), and (c) above have been satisfied.

Parity Debt. In addition to the Loan, the Agency may issue or incur Parity Debt in such principal amount as shall be determined by the Agency. The Agency may issue and deliver any Parity Debt subject to the following specific conditions which are hereby made conditions precedent to the issuance and delivery of such Parity Debt issued under this Section 2.072.06: (a) No Event of Default shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in this Loan Agreement; provided that the requirements of this subsection (a) will not apply to any issue of Parity Debt all of the available proceeds of which will be applied to refund the Loan or any other Parity Debt in whole or in part. (b) The Tax Revenues for the then current Fiscal Year, as set forth in a Written Certificate of the Agency, based on assessed valuation of property in the Project Area as evidenced in the written records of the County, shall be at least equal to one hundred twenty-five percent (100125%) of Maximum Annual Debt Service; provided that (i) the requirements of this subparagraph (b) will not apply to any issue of Parity Debt all of the available proceeds of which will be applied to refund the Loan or any other Parity Debt in whole or in part, and (ii) debt service on any Parity Debt the proceeds of which are deposited into an escrow fund meeting the requirements of subsection (d) will be disregarded for purposes of measuring Maximum Annual Debt Service. (c) The proceeds of such Parity Debt may be deposited into an escrow fund to be held by a trustee, from which amounts may not be released to the Agency unless the Tax Revenues for the most recent Fiscal Year (as evidenced in the written records of the County) at least equal one hundred twenty-five percent (125%) of the amount of Maximum Annual Debt Service. (cd) The issuance of such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue any Parity Debt in the event and to the extent that either (i) the amount of Maximum Annual Debt Service in any Fiscal Year following such issuance exceeds the aggregate amount of Tax Revenues which are eligible under the Redevelopment Plan to be allocated to the Agency in any Fiscal Year, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at any one time. (de) The Agency shall deliver to file with the City Trustee a Written Certificate of the Agency certifying that all of the foregoing conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), and (c) above have been satisfied.

Parity Debt. In addition The District further covenants that, except for obligations issued or incurred to prepay the LoanInstallment Payments in full pursuant to Section 10.02 hereof, the Agency may District shall not issue or incur Parity Debt in such principal amount as shall be determined by the Agency. The Agency may issue and deliver any Parity Debt subject to unless: (i) The District is not in default under the following specific conditions which are hereby made conditions precedent to terms of this Installment Sale Agreement; (ii) The Net Revenues for the issuance and delivery most recent audited Fiscal Year preceding the date of the adoption by the Board of Directors of the District of the resolution authorizing the incurrence of such Parity Debt, as evidenced by both a calculation prepared by the District and the special report prepare by an Independent Certified Public Accountant on such calculation on file with the District, shall have produced a sum equal to at least one hundred twenty per cent (120%) of the Debt issued under this Section 2.07:Service for such Fiscal Year, and (a) No Event of Default shall have occurred and be continuing, and the Agency shall otherwise be in compliance with all covenants set forth in this Loan Agreement. (biii) The Tax estimated Net Revenues for the then current Fiscal YearYear and for each Fiscal Year thereafter to and including the first complete Fiscal Year after the latest date of operation of any uncompleted Project, as set forth evidenced by an Engineer’s Report on file with the District, plus (after giving effect to the completion of all uncompleted Projects) an allowance for estimated Net Revenues for each of such Fiscal Years arising from any increase in a Written Certificate of the Agencyrates, fees and charges estimated to be fixed and prescribed for the Water Service and which are economically feasible and reasonably considered necessary based on assessed valuation of property in the Project Area projected operations for such period, as evidenced in by such Engineer’s Report on file with the written records of the CountyDistrict, shall be produce a sum equal to at least equal to one hundred percent twenty per cent (100120%) of Maximum Annual the estimated Debt ServiceService for each of such Fiscal Years, after giving effect, in either case, to the execution of all Parity Debt estimated to be required to be executed or issued to pay the costs of completing all uncompleted Projects, assuming that all such Parity Debt have maturities, interest rates and proportionate principal repayment provisions similar to the Parity Debt that were first issued for the purpose of acquiring and constructing such uncompleted Project. Either or both of the following items may be added to such Net Revenues for the purpose of applying the restriction contained in this subsection (b)(iii): (A) An allowance for revenues from any additions to or improvements or extensions of the Water System to be constructed with the proceeds of such additional obligations, and also for net revenues from any such additions, improvements or extensions which have been from moneys from any source but which, during all or any part of such Fiscal Year, were not in service, all in an amount equal to 70% of the estimated additional average annual Net Revenues to be derived from such additions, improvements and extensions for the first 36- month period following closing of the proposed Parity Debt, all as shown by the certificate or opinion of a qualified independent consultant employed by the District, may be added to such Net Revenues for the purpose of applying the restriction contained in this subsection (b)(iii). (cB) The issuance An allowance for earnings arising from any increase in the charges made for service from the Water System which has become effective prior to the incurring of such additional obligations but which, during all or any part of such Fiscal Year, was not in effect, in an amount equal to 100% of the amount by which the Net Revenues would have been increased if such increase in charges had been in effect during the whole of such Fiscal Year and any period prior to the incurring of such additional obligations, as shown by the certificate or opinion of a qualified independent engineer employed by the District. (iv) Interest with respect to such Parity Debt shall not cause the Agency to exceed any applicable Plan Limitations. Without limiting the generality of the foregoing, the Agency shall not issue any Parity Debt in the event and to the extent that either (i) the amount of Maximum Annual Debt Service in any Fiscal Year following such issuance exceeds the aggregate amount of Tax Revenues which are eligible under the Redevelopment Plan to be allocated to the Agency in any Fiscal Year, or (ii) the aggregate principal amount of all outstanding obligations of the Agency, including such Parity Debt, exceeds any applicable limit in the Redevelopment Plan paid on the aggregate principal amount of indebtedness which the Agency is permitted to have outstanding at any one timeInterest Payment Dates. (dv) Principal with respect to such Parity Debt shall be paid on December 1. The Agency District shall deliver to the City Trustee a Written Certificate of the Agency District certifying that the conditions precedent to the issuance of such Parity Debt set forth in subsections (a), (b), and (c) above have been satisfied.