Note Book: R.C - Laserfiche WebLink

Home Browse Search

(3) following completion of the Project in accordance with the original plar~s and specifications therefor, to provide funds sufficient to pay the County's Share of Improvements to the County Facilities, plus any Co~ts of Issuance inc~ured in cormectio:l th~rewith (any Additional Cenificates zaecuted and delivered for such purpose a:e i•efeced to in the Agreemei;t as "Irnprovement Certificates''). In the event that Refunding Certificates are to be executed and delivered to refund less than all Outstanding Certificates, the County may not direct the issuance of such Refunding Certificates, and the Trustee shall not execute and deliver such Refunding Certificates, unless the aggregate amount of principal and interest scheduled to be due and payable with respect to such Refunding Certificates in each fiscal year does not exceed by more than $5,000 the principal and interest scheduled to be due and payable in the same fiscal year with respect to the Certificates being refunded. The limitation described above on the issuance of Refunding Certificates does not apply to any Refunding Certificates that are to be executed and delivered for the purpose of refunding all Certificates Outstanding under the Agreement. The County may not direct the issuance of Improvement Certificates, and the Trustee shall not execute and deliver any Improvement Certificates, unless the County first provides to the Trustee an MAI appraisal showing that, as and when the proposed Improvements to the County's share of the Project are completed, the market value of the County's shaze of the Project equals or exceeds the principal components evidenced by all Outstanding Certificates plus the principal components to be evidenced by the Improvement Certificates in question. As a condition to the execution and delivery of any Additional Certificates that aze to be secured by a Credit Facility (other than a Credit Facility consisting of another municipal bond insurance policy issued by the Insurer), the Agreement requires the execution and delivery by the Trustee, the Insurer, each provider of a Credit Facility securing any Additional Certificates previously issued and the provider of such Credit Facility for the subject Additional Certificates, of an intercreditor agreement governing and coordinating, in a manner satisfactory to the Trustee and the County, the exercise of the respective rights and remedies of the Trustee, the Insurer and such Credit Facility providers. ~ The Agreement provides that nothing in the Agreement is intended, nor shall it be construed, to in any way restrict or limit the County's ability to incur indebtedness (other than in the form of Financing Payment obligations related to Additional Certificates as described above). Authorization And Purpose Oregon Revised Statutes, Section 271390 authorizes the County to enter into financing agreements for the purchase of property that the County determines is needed, and also authorizes the County to cause certificates of participation to be executed and delivered under such financing agreements. In exercise of this authority, the County's Board of Commissioners adopted Resolution No. 98-37R on November 10, 1998, authorizing the County to enter into the Agreement and the Mortgage and providing for the execution and delivery by the Trustee of the 1998 Certificates. The proceeds of the sale of the 1998 Certificates and other County funds will be used to pay the County's share of the costs of the Project; to pay the premium for the Insurance Policy securing the 1998 Certificates; and to pay for costs incurred in connection with the sale, execution and delivery of the 1998 Certificates. USE OF PROCEEDS The proceeds of the sale of the Certificates will be used to finance the cost of the Project, to pay issuance costs, to capitalize interest on the Certificates and to pay the premium for bond insurance provided by the Insurer. TABLE 1- SOURCES AND USES OF FUNDS Sources of Funds 1998 Series A Certificate Proceeds ~ Accrued Interest $22,000,000