6097 (EXHIBIT A - E) (2) - Laserfiche WebLink

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to make any appropriation for their payment in any fiscal year subsequent to a fiscal year in which the Lease is in effect. Under the terms of the Lease, if the City elects to renew the Lease at the end of the Initial Term or any Renewal Term, it is obligated to budget, appropriate and set aside a portion of its general revenues derived from property taxes and other sources, which appropriation must be sufficient to make the Base Rentals coming due during the ensuing fiscal year. The City is obligated to make Base Rentals to the Trustee on the 15th of each month preceding each Payment Date, which payments must be sufficient to enable the Trustee to pay the principal, premium, if any, and interest distributable with respect to the Certificates becoming due during such fiscal year (but only if the City elects to renew the Lease for each Renewal Term). There can be no assurance that the City Council will appropriate funds for Base Rentals or renew the Lease after the Initial Term. The City is not legally required to budget or appropriate money for any subsequent fiscal year beyond the current fiscal year. Reserve Fund A Reserve Fund is established pursuant to the Indenture and is required to be initially funded in an amount equal to the least of (1) 10% of the original principal amount of the Certificates, (2) the maximum annual Base Rentals with respect to the Certificates and (3) 125% of the average annual Base Rentals with respect to the Certificates (the "Reserve Requirement"). Proceeds of the Certificates in an amount equal to the Reserve Requirement will be deposited in the Reserve Fund on the date of initial delivery of the Certificates. Money in the Reserve Fund may be used solely (a) to make up any deficiencies in the Certificate Payment Fund and, if the money in the Certificate Payment Fund is insufficient to pay the principal component or the interest component of Base Rentals as the same become due, the Trustee is required to transfer from the Reserve Fund to the Certificate Payment Fund an amount sufficient to make up such deficiency or (b) to make Base Rentals or to make deposits to the Certificate Payment Fund to make such payments, in the amounts and at the times specified in a written request of the City given to the Trustee. If the Trustee receives any such request, it must transfer the amount specified therein on the date or dates specified therein. The Investment Securities held in the Reserve Fund are required to be valued at the market value thereof, excluding accrued interest. The Trustee is required to value the Reserve Fund semiannually as of the first business day of January and July of each year, and on any date that there is a draw on the Reserve Fund. If on any valuation date the Reserve Fund exceeds the Reserve Requirement, the Trustee must transfer the excess to the Certificate Payment Fund. If on any valuation date the amount in the Reserve Fund is less than the Reserve Requirement, the Lessee must replenish the Reserve Fund on or before the next succeeding valuation date. Ground Lease The City will, pursuant to the Ground Lease, lease the Leased Property to the Trustee, as lessee. The Leased Property consists of a tract of City-owned land on which the Project will be situated, together with all improvements now or to be situated thereon. The Ground Lease is for a term ending February 2, 2037, unless sooner terminated in the event the City makes all payments required by the Lease. If an Event of Default or Event of Nonappropriation occurs under the Indenture or the Lease, the Trustee has the right to possession of the Leased Property for the remainder of the term of the Ground Lease, and has the right to sublease its interest in the Ground Lease upon such terms as it deems prudent, so long as the Leased Property is operated for a public purpose. The proceeds from such sublease are required to be paid to the Trustee and applied in accordance with the Indenture. Owners of the Certificates are cautioned, however, that the nature of the Leased Property may impair the Trustee's ability to sublease it upon the occurrence of an Event of Default or Event of Nonappropriation or to obtain an amount therefor that would be sufficient to pay -9-