Ordinance 98-39 - Laserfiche WebLink

Home Browse Search

Upon the occurrence of any of the foregoing events, the interest rate on the 1998 Bond shall be adjusted to the product obtained by multiplying the interest rate on the 1998 Bond by a fraction, the numerator of which is equal to the sum of: (i) the product of the Fully Taxable Equivalent (hereinafter defined) times one minus the Maximum Corporate Tax Rate in effect as of the day of adjustment, and (ii) the TEFRA Adjustment (hereinafter defined) in effect as of the date of adjustment; and the denominator of which is equal to the sum of: (i) the product of the Fully Taxable Equivalent times one minus the Maximum Corporate Tax Rate in effect as of the date of the original issuance and delivery of the 1998 Bond, and (ii) the TEFRA Adjustment in effect as of the date of the original issuance and delivery of the 1998 Bond. For the purpose hereof: (I) "Maximum Corporate Tax Rate" means on the date of original issuance and delivery of this 1998 Certificate 35% and thereafter the maximum marginal rate of income tax imposed on corporations under Section 11 of the Code or any successor provision; (2) "TEFRA Adjustmenf' means an adjustment equal to the product of the following: Cost of Funds multiplied by the applicable Maximum Corporate Tax Rate multiplied by the applicable Preference Reduction Rate; (3) "Cost of Funds" means one hundred (100) multiplied by a fraction, the numerator of which is equal to the total interest expense of SunTrust Banks, Inc., for its immediately preceding tax year, and the denominator of which is equal to the average total assets of SunTrust Banks, Inc., but at no time will be determined to exceed the cost of Fed Funds; (4) "Preference Reduction Rate" means the percentage reduction to be applied to the amount allowable as a deduction under Chapter I of the Code with respect to any financial institution preference item (as such term is defined in Section 291(e) of the Code); and (5) "Fully Taxable Equivalent" means the ten (10) year U.S. Treasury yield plus 0.95 percent, expressed as a number and not as a percentage. For the purposes of this paragraph and the two preceding paragraphs, all percentages shall be expressed as decimals. ARTICLE ill COVENANTS, FUNDS AND APPLICATION THEREOF SECTION 3.1 1998 BOND NOT TO BE INDEBTEDNESS OF THE CITY. The 1998 Bond shall not be or constitute an indebtedness of the City within the meaning of any constitutional, statutory or other limitation of indebtedness, but shall be secured solely by and payable from the Pledged Revenues. No Bondholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City, or taxation in any form of any real property therein, to pay said 1998 Bond or the interest thereon. The pledge of the Pledged Revenues will not constitute a lien upon any property of the City. SECTION 3.2 1998 BOND SECURED BY PLEDGE OF PLEDGED REVENUES. From and after the issuance of the 1998 Bond, and continuing until the payment of all 1998 Bond as to principal and interest, the Pledged Revenues shall continue to be pledged for the prompt payment of principal of and interest on said 1998 Bond. SECTION 3.3 COVENANTS OF THE CITY. As long as any of the principal of or interest on the 1998 Bond shall be outstanding and unpaid, or until there shall have been set apart in the Debt Service Fund in accordance with Section 3.6 hereof a sum sufficient to pay, when due, the entire principal of the 1998 Bond remaining unpaid, together with interest accrued and to accrue thereon, the City covenants with the Bondholders as follows: 11