Common use of Rate Covenant Clause in Contracts

Rate Covenant. The Borrower shall ensure that in each fiscal year its Net Revenues Available for Debt Service equal at least 110% of System Debt Service for such fiscal year, and shall as soon as practicable, and in any event by the date it is required to deliver unaudited financial statements to the District pursuant to Section 2.2(f), (a) calculate its Net Revenues Available for Debt Service and System Debt Service for such fiscal year and the coverage ratio, and (b) certify such figures to the District. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached hereto as Appendix E to this Loan Agreement. If the percentage specified in clause (3) of the certificate required by the preceding sentence is less than 110%, then the Borrower shall provide such further certifications as the District shall reasonably require to determine the Borrower’s compliance with the requirements of this Loan Agreement. Failure to meet the coverage test is not an Event of Default if (a) the coverage is at least 100%, and (b) the Borrower, within 30 days of its certification to the District, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance and, upon receipt of the report, takes the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding anything provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the System (the “Expansion Debt”) and construction was not complete prior to the beginning of a fiscal year, the coverage ratio called for in the previous paragraph shall be 110% with respect to all System Revenue Debt, except the Expansion Debt, and 100% for such Expansion Debt. Any capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in the period for which such capitalized interest is to be applied to pay interest on the Expansion Debt.

Rate Covenant. The Borrower shall ensure that in each fiscal year its Net Revenues Available for Debt Service equal at least 110% of its System Debt Service for such fiscal year, and shall as soon as practicable, and in any event by the date it is required to deliver unaudited financial statements to the District pursuant to Section 2.2(f), (a) calculate its Net Revenues Available for Debt Service and System Debt Service for such fiscal year and the coverage ratio, and (b) certify such figures to the DistrictDistrict and the Trustee. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached hereto as Appendix E to this Loan Agreement. If the percentage specified in clause (3) of the certificate required by the preceding sentence is less than 110%, then the Borrower shall provide such further certifications as the District shall reasonably require to determine the Borrower’s compliance with the requirements of this Loan Agreement. Failure to meet the such coverage test is shall not be an Event of Default if hereunder so long as (a1) the coverage is was at least 100%, and (b2) the Borrower, within 30 days of its certification to the DistrictDistrict and the Trustee, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance andcompliance, and upon receipt of the such report, takes the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding anything provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the its System (the “Expansion Debt”) and construction was not complete prior to the beginning of a fiscal year, the coverage ratio called for in the previous paragraph shall be 110% with respect to all System Revenue Debt, except the such Expansion Debt, and 100% for such Expansion Debt. Any capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in the period for which such capitalized interest is to be applied to pay interest on the Expansion Debt.

Rate Covenant. The Borrower shall ensure Authority will fix, revise from time to time when necessary, maintain and collect such fees, rates, rentals and other charges for the use of the products, services and facilities of the Airport System, or concessions granted in connection therewith, that will always provide Revenues in each fiscal year its Net Revenues Available for Debt Service equal at least 110% Fiscal Year that will be sufficient to pay, in accordance with the provisions of System Debt Service for such fiscal yearthis Trust Agreement, and shall as soon as practicable, and in any event by the date it is (i) all amounts required to deliver unaudited financial statements to be deposited in the District pursuant to Section 2.2(f)Reserve Fund, (a) calculate its Net Revenues Available for Debt Service the Operation and System Debt Service for such fiscal year Maintenance Fund and the coverage ratioOperating Reserve Account in the Revenue Fund, and including in each case all accounts therein, plus (bii) certify such figures to the District. The certification described in clause One Hundred Twenty-Five percent (b125%) of the preceding sentence Bond Service Requirement for such Fiscal Year. The Authority covenants that it shall not permit such fees, rates, rentals and other charges to be substantially reduced so as to be insufficient to provide Revenues for such purposes. For purpose of determining compliance with this requirement, the Authority may include Available PFC Revenues in the form of the certificate attached hereto as Appendix E an amount not to this Loan Agreement. If the percentage specified in clause exceed One Hundred Twenty Five Percent (3125%) of the certificate amounts required by to be deposited into the preceding sentence is less than 110%Interest Account, then Principal Account and Redemption Account in the Borrower shall provide Sinking Fund for such further certifications year on the Outstanding PFC Bonds, or such lesser amount as may be required under the District shall reasonably require PFC Act, PFC Regulations and PFC Approvals as in effect from time to determine the Borrower’s compliance with the requirements time. For purposes of this Loan Agreement. Failure requirement, moneys remaining in the Surplus Fund (other than moneys set aside for the payment of Derivative Non-Scheduled Payments) at the end of any Fiscal Year which the Authority elects to meet redeposit into the coverage test is not an Event Revenue Fund in the following Fiscal Year may be considered as Revenues in the Fiscal Year in which they are so redeposited for purpose of Default if (a) satisfying the coverage is Rate Covenant set forth above; provided, however, that without regard to the use of such funds, the Authority shall always establish its rates and charges under this Section so that Revenues collected in the current Fiscal Year, without regard to carry over amounts from the Surplus Fund, will be at least sufficient to pay 100%, and (b) the Borrower, within 30 days of its certification to the District, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance and, upon receipt % of the report, takes yearly deposit requirements into the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding anything provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the System (the “Expansion Debt”) Operation and construction was not complete prior to the beginning of a fiscal yearMaintenance Fund, the coverage ratio called for in Sinking Fund, the previous paragraph shall be 110% with respect to all System Revenue Debt, except the Expansion Debt, Reserve Fund and 100% for such Expansion Debt. Any capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in the period for which such capitalized interest is to be applied to pay interest on the Expansion Debtsubordinated indebtedness accounts.

Rate Covenant. The Borrower shall ensure that in each fiscal year its Net Revenues Available for Debt Service equal at least 110% of its System Debt Service for such fiscal yearyear and shall, and shall as soon as practicable, practicable and in any event by the date it is required to deliver unaudited financial statements to the District pursuant to Section 2.2(f), (a) calculate its Net Revenues Available for Debt Service and System Debt Service for such fiscal year and the coverage ratio, ratio and (b) certify such figures to the DistrictDistrict and the Trustee. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached hereto as Appendix E to this Loan Agreement. If the percentage specified in clause (3) of the certificate required by the preceding sentence is less than 110%, then the Borrower shall provide such further certifications as the District shall reasonably require to determine the Borrower’s 's compliance with the requirements of this Loan Agreement. Failure to meet the such coverage test is shall not be an Event of Default if hereunder so long as (a1) the coverage is was at least 100%, % and (b2) the Borrower, within 30 days of its certification to the DistrictDistrict and Trustee, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance and, upon receipt of the such report, takes the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to to, correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding Notwithstand ing anything provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the its System (the “"Expansion Debt”") and construction was not complete prior to the beginning of a fiscal year, the coverage ratio called for in the previous paragraph shall be 110% with respect to all System Revenue Debt, Debt except the such Expansion Debt, Debt and 100% for such Expansion Debt. Any , and capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in the period for which such capitalized interest is to be applied to pay interest on the Expansion DebtService.

Rate Covenant. The Borrower shall ensure Issuer covenants that in each fiscal year its it will fix, establish and collect such fees, rentals and other charges from students, faculty members and others using or being served by the Housing System, and revise them from time to time whenever necessary, so that the Net Revenues Available for Debt Service equal shall be sufficient in each Fiscal Year to pay at least 110% one hundred twenty five percent (125%) of an amount equal to the Bond Service Requirement for all Senior Bonds coming due in such Fiscal Year. For purposes of calculating compliance with the rate covenant set forth above, System Debt Service for such fiscal Revenues may be adjusted by including (i) investment earnings on the amounts on deposit in the Series 2010 Account of the Reserve Fund and (ii) proceeds received by the Trustee from any business interruption policy. The Issuer shall annually, but in no event later than January 25th of each year, and shall as soon as practicable, and deliver a certificate to the Trustee certifying compliance with the rate covenant set forth above based on the audited financial statements of the Issuer for the previous Fiscal Year. If in any event Fiscal Year the Issuer shall fail to comply with the requirement in the immediately preceding paragraph, it shall immediately cause the Housing Consultant to review its rates, fees and charges, income, System Revenues, Operating Expenses and methods of operation and to, within 60 days of such request by the date it is required to deliver unaudited financial statements Issuer, make written recommendations to the District pursuant to Section 2.2(f), (a) calculate its Net Revenues Available for Debt Service and System Debt Service for such fiscal year Issuer and the coverage ratio, and (b) certify such figures Managers as to the Districtmethods by which the Issuer and the Managers may promptly seek to comply with such provisions set forth in the immediately preceding paragraph. The certification described in clause (b) Issuer shall or shall cause the Managers within 30 days of receipt of the preceding sentence recommendations commence to implement such recommendations to the extent required so as to cause it to thereafter comply with such requirements. The Issuer shall be substantially in withhold the form payment of Management Fees following the certificate attached hereto as Appendix E failure to this Loan Agreement. If the percentage specified in clause (3) of the certificate required by the preceding sentence is less than 110%, then the Borrower shall provide such further certifications as the District shall reasonably require to determine the Borrower’s compliance comply with the requirements of this Loan Agreementthe immediately preceding paragraph until such time as the Issuer is again in compliance with such provisions. The unpaid Management Fees shall continue to accrue until paid without interest. Failure to meet comply with the coverage test is requirements of the immediately preceding paragraph shall not be considered an Event of Default if (a) hereunder so long as the coverage Issuer is at least 100%, and (b) implementing the Borrower, within 30 days of its certification to the District, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance and, upon receipt of the report, takes the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding anything Housing Consultant; provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the System (the “Expansion Debt”) and construction was not complete prior to the beginning of a fiscal year, the coverage ratio called for in the previous paragraph shall be 110% with respect to all System Revenue Debt, except the Expansion Debt, and 100% for such Expansion Debt. Any capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in each Fiscal Year shall equal at least one hundred percent (100%) of an amount equal to the period Bond Service Requirement for which all Senior Bonds coming due in such capitalized interest is to be applied to pay interest on the Expansion DebtFiscal Year.

Rate Covenant. The Borrower shall ensure Authority will fix, revise from time to time when necessary, maintain and collect such fees, rates, rentals and other charges for the use of the products, services and facilities of the Airport System, or concessions granted in connection therewith, that will always provide Revenues in each fiscal year its Net Revenues Available for Debt Service equal at least 110% Fiscal Year that will be sufficient to pay, in accordance with the provisions of System Debt Service for such fiscal yearthis Trust Agreement, and shall as soon as practicable, and in any event by the date it is (i) all amounts required to deliver unaudited financial statements to be deposited in the District pursuant to Section 2.2(f)Reserve Fund, (a) calculate its Net Revenues Available for Debt Service the Operation and System Debt Service for such fiscal year Maintenance Fund and the coverage ratioOperating Reserve Account in the Revenue Fund, and including in each case all accounts therein, plus (bii) certify such figures to the District. The certification described in clause One Hundred Twenty‐Five percent (b125%) of the preceding sentence Bond Service Requirement for such Fiscal Year. The Authority covenants that it shall not permit such fees, rates, rentals and other charges to be substantially reduced so as to be insufficient to provide Revenues for such purposes. For purpose of determining compliance with this requirement, the Authority may include Available PFC Revenues in the form of the certificate attached hereto as Appendix E an amount not to this Loan Agreement. If the percentage specified in clause exceed One Hundred Twenty Five Percent (3125%) of the certificate amounts required by to be deposited into the preceding sentence is less than 110%Interest Account, then Principal Account and Redemption Account in the Borrower shall provide Sinking Fund for such further certifications year on the Outstanding PFC Bonds, or such lesser amount as may be required under the District shall reasonably require PFC Act, PFC Regulations and PFC Approvals as in effect from time to determine the Borrower’s compliance with the requirements time. For purposes of this Loan Agreement. Failure requirement, moneys remaining in the Surplus Fund (other than moneys set aside for the payment of Derivative Non‐Scheduled Payments) at the end of any Fiscal Year which the Authority elects to meet redeposit into the coverage test is not an Event Revenue Fund in the following Fiscal Year may be considered as Revenues in the Fiscal Year in which they are so redeposited for purpose of Default if (a) satisfying the coverage is Rate Covenant set forth above; provided, however, that without regard to the use of such funds, the Authority shall always establish its rates and charges under this Section so that Revenues collected in the current Fiscal Year, without regard to carry over amounts from the Surplus Fund, will be at least sufficient to pay 100%, and (b) the Borrower, within 30 days of its certification to the District, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance and, upon receipt % of the report, takes yearly deposit requirements into the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding anything provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the System (the “Expansion Debt”) Operation and construction was not complete prior to the beginning of a fiscal yearMaintenance Fund, the coverage ratio called for in Sinking Fund, the previous paragraph shall be 110% with respect to all System Revenue Debt, except the Expansion Debt, Reserve Fund and 100% for such Expansion Debt. Any capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in the period for which such capitalized interest is to be applied to pay interest on the Expansion Debtsubordinated indebtedness accounts.