Ord 2004-074 - Laserfiche WebLink

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I I I (b) The monthly depOSits to the Interest and Sinking Fund for the payment of principal of and II1terest on the Bonds shall continue to be made as herell1above provided until such time as (i) the total amount on deposit in the Interest and Slnkll1g Fund and Reserve Fund is equal to the amount required to pay all outstanding obligations (principal and/or II1terest) for \vhich said Fund was created and established to pay or (il) the Bonds are no longer outstandlllg, ie, fully paid as to prinCipal and interest or all of the Bonds have been refunded. (c) Any proceeds of the Bonds not required to complete the improvements and extensions to the System or required to be deposited otherwise by tillS Ordinance, shall be deposited to the Interest and Sinking Fund Proceeds of the Bonds so deposited, accrued interest and any other amount or amounts received from the Purchaser of the Bonds and required by this Ordinance to be deposited to the Interest and Sinking Fund, may be taken into consideration and reduce the amount of the monthly deposits hereinabove provided which would otherwise be required to be deposited in the Interest and Sinking Fund from the Net Revenues of the System. Section 8.04. Reserve Fund. (a) The City hereby covenants and agrees with the holders of the Bonds that it will provide for the accumulation of, and when accumulated, will thereafter continuously maintain in the Reserve Fund an amount equal to not less than the average annual principal and interest requirements of the Parity Revenue Obligations (calculated on a fiscal year basis as of the date the last series of Parity Revenue Obligations were authorized). Immediately following the delivery of the Bonds, the appropriate City officials shall calculate and determ ine the average annual principal and interest requ irements for the Parity Revenue Obligations then outstanding. After deducting the amount then on deposit in the Reserve Fund from such calculation, the amount of the difference, if any, shall be deposited in the Reserve Fund in sixty (60) substantially equal monthly payments on or before the 10th day of each month; the initial monthly deposit to be made on or before the 10th day of the month next following the month the Bonds are delivered. After the total amount required to be on deposit in the Reserve Fund has been accumulated, monthly payments to said Fund may be terminated; provided, however, should the amount on deposit therein be reduced below the sum required to be maintall1ed in said Fund after the same has been accumulated, payments to said Fund in an amount equal to the defiCiency shall be resumed and continued to be made on or before the 10th day of each month until the total amount then required to be on deposit in the Reserve Fund has been fully restored In the event money 111 the Reserve Fund is used for an authorized purpose while monthly payments are being made to said Fund, the amount required to restore the sum then required to be on deposit therein shall be added to the payments then being made in the following month or months until the total amount then required to be on deposit in said Fund has been fully restored. (b) Notwithstanding the requirements of subsection (a) above, and only as and to the extent permitted by law, the City may provide a Surety Policy or PoliCies issued in amounts equal to all or part (as may be specified in the ordll1ance authorizll1g any series of Parity Revenue Obligations) of the average annual principal and interest requ irements of the Parity Revenue Obi igations, In I ieu of depositing cash into the Reserve Fund; provided, however, that no such Surety Pol icy may be so substituted unless (i) the substitution of the Surety Policy will not cause any ratings then assigned to the Bonds by either Moody's Investors Service or Standard & Poor's Ratings Group to be lowered and (ii) the City Council finds that the substitution of the Surety Policy for all or part of the average annual principal and interest requirements of the Parity Revenue Obligations IS cost effective. Subject to the terms of the Surety Policy, the City shall apply the proceeds of the Revenue Fund pro rata to (I) the reestablishment of any cash balance reqUIred to be malntall1ed in the Reserve Fund and (II) the payment of subrogatIon obligations of the City under the terms of a Surety Policy or Surety PoliCies With respect lo Panty Obligations (c) In the event a Surety PolICY issued to satisfy all or part of the City's obligation with respect to the Reserve Fund causes the amount then on depOSit 111 the Reserve Fund to exceed the average annual I( Sail Ma'CD' WWSSIU O-I^.[)ucs\U,dDlallCC WW Old ID"t1 "'I'd 25