Resolutions - Jersey City

Continuation of ResolutionCity Clerk FileNo. Res. 09-766Agenda No. 18. Z. 38SEP 0 9 2009TITLE:"Taxable Rate" as applicable, or such other increased rate, as calculated in accordance with theterms of a "Letter of Credit and Reimbursement Agreement", by and between the Authority andThe Bank of New York Mellon (f/kJa The Bank of New York) (the "Letter of Credit andReimbursement Agreement") resulting from a "Determination of Taxability" or a determinationof "Law or Regulation Change: (as such terms are referred to and defined in the AuthorityResolution or the Letter of Credit and Reimbursement Agreement). The Program Bonds wereissued by the Authority to pay a proportionate share of Program Costs (as defined in theAuthority Resolution) and a sufficient additional amount to insure that the principal amount ofProgram Bonds issued to pay the Costs of Issuance of the. Program Bonds are repaid, all as setforth in the Resolution.Upon the occurrence of an Event of Default by the Authority under the terms of theAuthority Resolution in connection with the Program Bonds, or ~n the event of default in anypayments of principal of or interest on this Bond which are not cured by the issuer of the CreditFacility (the "Bank") (as such terms are defined in the Authority Resolution) in its sole andabsolute discretion, then the Trutee may by notice to the City accelerate the principal amountof the Bonds all as provided in the Authority Resolution. The Bank, pursuant to the AuthorityResolution, niay elect to prepay such defaulted amounts on behalf of the City and to acceleratethe City's payment obligation under the terms of the Bonds. Immediately upon any suchacceleration, the Trustee, on behalf of the Authority shall assign the Bonds to the issuer of theCredit Facilty by executing the Assignent on the reverse of the Bonds. The interest rate onthe Bonds, from the date of such assignent, shall be (i) for the first 30 Dollar Days ofAdvances (as such terms are defined in the Letter of Credt tlnd Reimburement Agreement)equal to the Ban's Prime Rate in effect from time to time, and (ii) for all advances thereafter,Pg.#3equal to one perèent per annum above thePrime Rate in effect from time to time (the Bank'sPrime Rate shall be therate of interest anounced publicly or quoted by the Ban from time totime as the Bank's prime rate and as a base rate for calculatig interest on certin loans). TheCity fuer agrees to repay its proportonate share of the Costs of Issuace (calculated puruantto the ters of the Authority Resolution as if the Bonds were prepaid in full on the date of suchassignent). Any amounts paid by the Ban on behalf of the City shall be repaid to the Bank, on demand with interest thereon at the Default Rate and such payments by the Ban shall not in