Baltimore/Washington International Thurgood Marshall Airport

Ratemaking Overview

Settlement & True-Up

Not available

Extraordinary Coverage Protection (ECP)

Not available

Landing Fee Methodology

Airfield cost center net of non-airline revenues divided by estimated landed weight

Terminal Rental Rate

Terminal cost center allocated by rentable square footage

Common Use & Gate Allocation

Additional Bonds Test

Department must provide Trustee with one of the following: (a)(i) if for Completion or Extraordinary Maintenance: Airport Consultant report that estimated Net Pledged Revenues for each of three full Bond Years following date proceeds fully applied is projected to be not less than Debt Service Requirements of all outstanding Bonds and Other Obligations as of last day of each such Bond Year, and Engineer's report that proceeds do not exceed amount necessary for intended purpose; or (a)(ii) for Completion only: Certificate that aggregate principal amount not greater than 10% of Bonds issued to finance the project; (b) if for Refunding: Certificate that Maximum Annual Debt Service assuming Additional Bonds issued and refunded obligations no longer outstanding will not be increased; or (c) Certificate that (i) Net Pledged Revenues received in most recent Bond Year was not less than sum of 125% of Maximum Annual Debt Service taking into account Additional Bonds plus 100% of Debt Service Requirements of Other Obligations; or (ii) based on Airport Consultant report, during each of three Bond Years after delivery of Additional Bonds, estimated Net Pledged Revenues projected to be not less than sum of 125% of Debt Service Requirements taking into account Additional Bonds plus 100% of Debt Service Requirements of Other Obligations. For Programs (draw-down bonds over multiple years): compliance may be determined at time of issuance of any Series provided period over which Additional Bonds issued does not exceed three years and aggregate principal amount set forth in Certificate or Airport Consultant report.

Rate Covenant

Net Pledged Revenues in each Bond Year must be at least (i) 125% of Debt Service Requirements of all outstanding Bonds for such Bond Year; and (ii) 100% of Debt Service Requirements of all outstanding Other Obligations for such Bond Year. Net Pledged Revenues = Pledged Revenues minus Operating Expenses. While secured by gross revenue pledge, Rate Covenant is structured on net revenues basis.

Flow of Funds

Gross revenue pledge of Pledged Revenues. All Pledged Revenues deposited to Pledged Revenue Fund, then applied monthly in priority order: (1) Operating Expenses (paid from Transportation Trust Fund after monthly transfer from Pledged Revenue Fund), (2) Bond Fund (monthly deposits of 1/12 of annual debt service for upcoming payment dates), (3) Debt Service Reserve Fund (monthly deposits to cure any deficiency within 12 months), (4) Subordinate Debt Fund (if any subordinate obligations exist), (5) Redemption Fund (amounts designated for optional redemption). If Pledged Revenues insufficient, amounts in Transportation Trust Fund may (at Department's discretion) be available subject to General Assembly appropriation, but Transportation Trust Fund is NOT pledged to Bonds.