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<br />December 31st of each year. Any obligations in which money is so invested shall be <br />held subject to the same lien as the money which was used to purchase such <br />obligations and shall be sold when so ordered by the City, and the City shall in all <br />events order such sale when necessary to prevent any default in connection with the <br />Outstanding Bonds, Bonds or Additional Bonds. <br /> <br />Section 7.04. Initial Deposits. <br /> <br />On the Closing Date, the City shall cause the proceeds from the sale of the <br />Bonds to be deposited as follows: <br /> <br />(i) first, all accrued interest on the Bonds from the Original <br />Issue Date until the Closing Date and premium, if any, shall be deposited to <br />the credit of the Waterworks and Sewer System Junior Lien Bond Fund; <br /> <br />(ii) second, the remaining balance shall be deposited to the credit <br />of a constrUction fund or funds; <br /> <br />ARTICLE VIII <br />ADDITIONAL BONDS <br /> <br />Section 8.01. AdditiQnal Bonds. The City reserves the right to issue, in one <br />or more installments, additional bonds or obligations ("Additional Bonds") payable <br />from or secured by a first lien on and pledge of the revenues of the System, and such <br />Additional Bonds, when issued in compliance with law and the terms and conditions <br />hereinafter appearing, shall be equally and ratably secured by and payable from a <br />lien on and pledge of the net revenues of the System, and shall be in all respects on <br />a parity and of equal dignity with the Bonds. The right to issue Additional Bonds at <br />any time is subject to the following limitations, restrictions, and conditions: <br /> <br />(a) The Additional Bonds are authorized and issued in conformity with <br />the Constitution and applicable Statutes of the State of Texas; <br /> <br />(b) The City certifies that no default exists in connection with any of the <br />covenants or requirements of the ordinance or ordinances authorizing the issuance <br />of all then outstanding bonds payable from the net revenues of the System; <br /> <br />(c) The City certifies that the Interest and Sinking Fund contains the <br />amount then required to be on deposit therein; <br /> <br />(d) The net revenues of the System for the fiscal year immediately <br />preceding the issuance and sale of said Additional Bonds are equal to at least one <br />and five-tenths (1.5) times the average annual debt service requirements of the then <br />Outstanding Bonds, as certified by a Certified Public Accountant; and <br /> <br />(e) The annual net revenues of the System will be equal to at least one <br />and five-tenths (1.5) times the average annual amount required for payment of <br /> <br />2387f <br /> <br />-22- <br />