Drafter
Clerk 06/18/2010
title
AN ORDINANCE approving forms of amendments to reimbursement agreements between the county and Helaba Bank to provide for extensions of the letters of credit securing $100,000,000 of the county's junior lien variable rate demand sewer revenue bonds issued in 2001 and authorizing the county's finance director to sign and deliver the amendments.
Body
PREAMBLE:
The county's policy for debt of the county's regional water pollution control and wastewater treatment system (the "System") provides for a certain portion of such debt to be outstanding at variable rates. In accordance with that policy, the county issued $100,000,000 in junior lien variable rate sewer bonds in 2001 (the "2001 Bonds") pursuant to Ordinances 14171 and 14172, as amended by Ordinances 16719 and 16720, respectively. Payments of principal of and interest on the 2001 Bonds, as well as the payment of the purchase price of the 2001 Bonds when tendered by their holders, are secured by letters of credit that have been provided by Landesbank Hessen-Thüringen Girozentale, acting through its New York Branch, known as Helaba Bank (the "Bank").
The terms for the Bank's provision of the letters of credit are set forth in reimbursement agreements, one for each series of the bonds. The current reimbursement agreements expire in August 2010, and the letters of credit will terminate unless terms for extensions are established. The Bank and the county have agreed to the terms set forth in the attached form of amendment to each of the reimbursement agreements. To maintain the lowest cost for the county, the county wishes to amend the reimbursement agreements to provide additional security to the Bank.
BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Definitions. Unless otherwise defined in this ordinance, capitalized terms used in this ordinance have the meanings given them in Ordinances 14171 and 14172, as amended by Ordinances 16719 and 16720, respectively.
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