21-3283 - Series 2021 Capital Improvement Bond - Police Station - Sterling National Bank

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The City shall pay interest upon the unpaid principal balance of the Series 2021 Bond at the Interest Rate, subject to adjustment as provided herein. Interest shall be due and payable semi- annually on each April 1 and October 1 commencing April 1, 2022, and shall be calculated based upon a year of 360 days consisting of twelve 30 -day months. Principal of and interest on the Series 2021 Bond shall be payable from, and secured by, the legally available Non -Ad Valorem Revenues budgeted and appropriated by the City as provided in Section 8 hereof. The Series 2021 Bond is subject to prepayment as set forth in Section 15 hereof and in the Series 2021 Bond. In any case in which interest is due or the maturity date of the Series 2021 Bond or the date fixed for the redemption of the Series 2021 Bond shall be other than a Business Day, then payment of interest, principal or redemption price need not be made on such date but may be made on the next succeeding Business Day, with the same force and effect as if made on the due date, and no interest on such payment shall accrue for the period after such due date if payment is made on such next succeeding Business Day. Except as otherwise provided herein, upon the occurrence of an Event of Taxability and for as long as the Series 2021 Bond remains outstanding, the Interest Rate on the Series 2021 Bond shall be converted to the Taxable Rate and this adjustment shall survive payment on the Series 2021 Bond until such time as the federal statute of limitations under which the interest on the Series 2021 Bond could be declared taxable under the Code shall have expired. In addition, upon an Event of Taxability, the City shall, immediately upon demand, pay to the Owner (or prior holders, if applicable) (i) an additional amount equal to the difference between (A) the amount of interest actually paid on the Series 2021 Bond during the Taxable Period and (B) the amount of interest that would have been paid during the Taxable Period had the Series 2021 Bond borne interest at the Taxable Rate, and (ii) an amount equal to any interest, penalties and additions to tax (as referred to in Subchapter A of Chapter 68 of the Code) owed by the Owner as a result of the Event of Taxability (the "Additional Amount"). The Owner shall promptly notify the City in writing of any adjustments pursuant hereto. Such adjustments shall become effective as of the effective date of the event causing such adjustment. Adjustments pursuant hereto may be retroactive. The Owner shall provide to the City in writing the Additional Amount, if any, due to such Owner as a result of an adjustment pursuant hereto. Notwithstanding any provision hereto the contrary, in no event shall the interest rate on the Series 2021 Bond exceed the maximum rate permitted by law. The Series 2021 Bond shall be issued in fully registered form without coupons; shall be issued as a current interest paying Series 2021 Bond; shall be payable in lawful money of the United States of America; and shall bear interest from its date, payable by direct debit of an account maintained by the City or other direct electronic payment to the Owner acceptable to the City and Owner. The Series 2021 Bond shall be issued in certificated form and registered in the name of the Purchaser.