Common use of Additional Contracts and Bonds Clause in Contracts

Additional Contracts and Bonds. So long as any Series 2023 Installment Payments are Outstanding, the District shall not issue or incur any obligations payable from Net Revenues, or secured by a lien of Revenues, senior or superior to the Series 2023 Installment Payments. The District may at any time execute any Contract or issue any Bonds, as the case may be, payable from Net Revenues and secured by a lien of Revenues on a parity with the Series 2023 Installment Payments to provide financing for the Sewer System in such principal amount as shall be determined by the District, subject to the following specific conditions which are hereby made conditions precedent to the issuance and delivery of such Bonds or Contracts: (a) No Event of Default shall have occurred and be continuing, unless such Event of Default shall be cured upon the execution or issuance of such additional Contract or Bond; and (b) The District obtains or provides a certificate prepared by an Independent Certified Public Accountant or Independent Municipal Advisor showing that the Net Revenues as shown by the books of the District for any 12 consecutive calendar month period during the 18 calendar month period ending prior to the incurring of such Bonds or Contracts shall have amounted to at least 125% of the Debt Service for all Bonds or Contracts to be outstanding immediately after incurring such additional Bonds or Contracts, including Debt Service which would have been payable on any Bonds or Contracts incurred since the end of such 12 month period, assuming that such Bonds or Contracts had been incurred at the beginning of such twelve month period, and Debt Service which would have been payable had the proposed additional Bonds or Contracts being incurred been incurred at the beginning of such 12 month period. For purposes of preparing the certificate described in subsection (b), the Independent Certified Public Accountant or Independent Municipal Advisor may rely upon financial statements prepared by the District, which have not been subject to audit by an independent certified public accountant if audited financial statements for the Fiscal Year or period are not available. For purposes of demonstrating compliance with the foregoing, Net Revenues may be adjusted (at the option of the District) to include the Additional Revenues. The certificate described in subsection (b) shall not be required if: (1) the Bonds or Contracts being incurred are for the exclusive purpose of refunding then outstanding Bonds or Contracts; (2) at the time of the incurring of such Bonds or Contracts, a certificate of an Authorized Representative of the District shall be delivered showing that Debt Service on the refunding Bonds or Contracts will not exceed by more than 10% Debt Service on the refunded Bonds or Contracts in each Fiscal Year; and (3) the final maturity of the refunding Bonds or Contracts is not later than the final maturity of the refunded Bonds or Contracts. (c) The District may at any time incur obligations payable from Net Revenues on a subordinate basis (as to lien and payment) to Bonds and Contracts.