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<br />2411f <br /> <br />(a) Current Expenses of the System shall be payable <br />from month to month as a first charge against the Water and Sewer <br />System Revenue Fund as the same become due and payable. The City <br />covenants and agrees that the Current Expenses of the operation of <br />the System in any year will not exceed the reasonable and necessary <br />amounts therefor. <br /> <br />(b) There has been created, established, and continuously <br />maintained in a bank which is a member of the Federal Deposit <br />Insurance Corporation, pursuant to the Ordinance authorizing the <br />Outstanding Bonds, a separate account known as the "Water and <br />Sewer System Junior Lien Revenue Bond Interest and Sinking Fund", <br />(the "Water and Sewer System Junior Lien Bond Fund"). Said Fund is <br />hereby confirmed and shall be used exc1usively for the purpose of <br />paying principal and interest on the Outstanding Bonds, the Bonds, <br />and Additional Bonds hereafter issued to be on a parity with the <br />Outstanding Bonds and the Bonds. The City covenants and agrees <br />that so much of the proceeds from the sale of the Bonds as represents <br />accrued interest thereon shall be deposited to the credit of the Water <br />and Sewer System Junior Lien Bond Fund concurrently with the <br />receipt of such proceeds. <br /> <br />Thereafter, and after providing for the payment of Current <br />Expenses of the System, and in addition to the payments required by <br />the Ordinances authorizing the Outstanding Bonds for the payment of <br />the principal and interest on the Outstanding Bonds, there shall be <br />transferred from the Water and Sewer System Revenue Fund to the <br />Water and Sewer System Junior Lien Bond Fund on or before the 10th <br />day of each month, not less than one-fifth of the next maturing <br />interest payment and one-tenth of the next maturing principal <br />payment with respect to the Bonds until the funds and/or investments <br />in the Water and Sewer System Junior Lien Bond Fund are sufficient <br />to pay debt service requirements on the Outstanding Bonds and Bonds <br />for the then current year, plus a debt. service reserve in the sum of <br />$318,584.00, and thereafter, such sums as may be necessary to pay <br />when due the then current year's debt service and maintain a debt <br />service reserve in the amount of $318,584.00. <br /> <br />(c) There is hereby confirmed, and the City shall <br />continue to maintain in a bank which is a member of the Federal <br />Deposit Insurance Corporation, so long as any of the Outstanding <br />Bonds, Bonds or Additional Bonds are outstanding, a "Water and <br />Sewer System Replacement and Repair Fund". into which the sum of <br />$1,833.33, or such portion thereof as is available, shall be deposited <br />on or before the 10th day of each month from the net revenues of the <br />combined water and sewer system until the funds and/or investments <br />therein shall amount to $110,000.00. Funds in said Water and Sewer <br />System Replacement and Repair Fund shall be used to pay for any <br />extraordinary repairs or replacements to the System for which funds <br />