revenue bonds notes

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Revenue Bonds Paragraph 5 of the original Asheville Complaint states that Asheville issued Revenue Bonds for investment in the water system. Paragraph 24 states that the debt incurred from the issuance of the Revenue Bonds was intended to finance capital expenditures for the water system. Paragraph 24 cites the authority for issuing the bonds as Article 5 of Chapter 159 , “Revenue Bonds.” Paragraph 24 states that Asheville is the obligor of the Revenue Bonds. Paragraph 30 states that a bond default would obligate the City to pay debt incurred by issuing the Revenue Bonds in full, presumably out of the City’s General Fund as opposed to future systemgenerate revenue, and, therefore, damage the City’s credit rating. Thus acknowledging that the City not invested in the system with City funds, but with customer funds. Paragraph 61 states that the State’s action puts the City at risk of exposure by potentially impairing its ability to perform against issuance of Revenue Bonds. Paragraph 62 emphasizes that the City is subject to the provision of the state statute governing Revenue Bonds. Paragraph 63 clearly states that the bonds that are at risk are Revenue Bonds and that the City is deserving of protection from default. Paragraph 64 indicates how the State’s action could jeopardize the City’s performance against the Revenue Bonds. Paragraph 65 contemplates how the City taxpayers could be at risk in the event of default on the Revenue Bonds and how this might presumably impact both the City and the water system. Paragraph 74, 75, & 76 reiterate that a default on the Revenue Bonds, caused by the State’s action, would expose the City to financial risk and thereby impair the City’s creditworthiness. In the City’s Demand for Judgment (pg. 22), Paragraph 5(b) seeks damages to indemnify the City against a default on the Revenue Bonds.

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The City of Asheville lawsuitRevenue Bonds Notes

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Page 1: Revenue Bonds Notes

Revenue Bonds  Paragraph 5 of the original Asheville Complaint states that Asheville issued Revenue Bonds for investment in the water system.  Paragraph 24 states that the debt incurred from the issuance of the Revenue Bonds was intended to finance capital expenditures for the water system. Paragraph 24 cites the authority for issuing the bonds as Article 5 of Chapter 159, “Revenue Bonds.”  Paragraph 24 states that Asheville is the obligor of the Revenue Bonds.  Paragraph 30 states that a bond default would obligate the City to pay debt incurred by issuing the Revenue Bonds in full, presumably out of the City’s General Fund as opposed to future system­generate revenue, and, therefore, damage the City’s credit rating. Thus acknowledging that the City not invested in the system with City funds, but with customer funds.  Paragraph 61 states that the State’s action puts the City at risk of exposure by potentially impairing its ability to perform against issuance of Revenue Bonds.  Paragraph 62 emphasizes that the City is subject to the provision of the state statute governing Revenue Bonds.  Paragraph 63 clearly states that the bonds that are at risk are Revenue Bonds and that the City is deserving of protection from default.  Paragraph 64 indicates how the State’s action could jeopardize the City’s performance against the Revenue Bonds.  Paragraph 65 contemplates how the City taxpayers could be at risk in the event of default on the Revenue Bonds and how this might presumably impact both the City and the water system.  Paragraph 74, 75, & 76 reiterate that a default on the Revenue Bonds, caused by the State’s action, would expose the City to financial risk and thereby impair the City’s creditworthiness.  In the City’s Demand for Judgment (pg. 22), Paragraph 5(b) seeks damages to indemnify the City against a default on the Revenue Bonds.  

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