Agenda - 10-04-1993 - VIII-A - Laserfiche WebLink

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Mr. Ted W, Abernathy, Jr. September 29, 1993 Page Two In the event of a payment default, and taking into consideration the structural safeguards dercribed above, the bondholders and the trustee will have negotiated with TYHA and Orange County, with the advice of MFG and PHN,for an increase in rates or user charges, alternative uses of the TCAC, a reduction in the interest rate on the bonds, or some combination of remedies. Foreclosure by the trustee and a sale of the TCAC would be the last resort of the bondholders. (2) if, for example, TCAC revenue substantially exceeds current projections, how might the excess revenue be used? As discussed above, the indenture will be closed ended. Therefore, TYHA and Orange County might agree to use excess revenue as follows: (a) to expand and improve the TCAC with additional revenue continuing to be captured under the indenture; (b) after the build-up of a threshold amount (to be negotiated with the bondholders prior to closing), a portion of excess revenue might be paid to Orange County; (c) to retire the bonds, or a portion thereof, on the earliest redemption date (typically, the tenth anniversary date of the bonds); or (d) to effect some combination of(a), (b) and/or (c) above. I trust this brief response will serve your purposes. Please give me a call if you should have any additional questions or require further explanation. Yours sincerely, Patricia H, Newman Chairman and President pc: Dick Davis Lovell C. Jones Dan Kidd Blair Levin, Esq. Donald P. Ubell, Esq.