Ord 1986-125 - Laserfiche WebLink

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Section 14. INTEREST AND SINKING FUND. (a) For the sole purpose of paying the principal of and interest on all Bonds and any Additional Bonds, as the same come due, there shall be created, established and maintained on the books of the City a separate fund entitled the "City of San Marcos, Texas, Electric Utility System Revenue Bonds Interest and Sinking Fund" (hereinafter caned the "Interest and Sinking Fund"). Monies in said Fund shall be maintained at an official depository bank of the City. (b) Within the Interest and Sinking Fund there is hereby established the Mandatory Redemption Account, into which account shall be credited the Amortization Installments which shall be used for the payment of the principal of Term Bonds as the same shall come due, whether by maturity thereof or by redemption, through the operation of the Mandatory Redemption Account as herein provided. Section 15. RESERVE FUND. There shall be created, established and maintained on the books of the City a separate fund entitled the "City of San Marcos, Texas, Electric Utility System Revenue Bonds Reserve Fund" (hereinafter called the "Reserve Fund"). Monies in said Fund shall be used solely for the purpose of retiring the last of any Bonds or Additional Bonds as they become due or paying principal of and interest on any Bonds or Additional Bonds when and to the extent the amounts in the Interest and Sinking Fund are insufficient for such purpose. Monies in said Fund shaH be initially deposited with and shall be maintained at an official depository bank of the City. Section 16. DEPOSITS OF PLEDGED REVENUES; INVESTMENTS. (a) The Pledged Revenues shaH be deposited in the Interest and Sinking Fund and the Reserve Fund when and as required by this Ordinance. (b) Money in any Fund established and to be maintained as provided in this Ordinance may, at the option of the City, be (A) placed in time deposits or certificates of deposit which are secured by (1) obligations of the type described in (B) hereinbelow, (ii) any obligations of the City rated "AA" by Standard & Poor's Corporation or Moody's Investors Service, or (iii) any municipal bonds issued by a political subdivision in Texas bearing a rating by Standard & Poor's Corporation of "AA" or Moody's Investors Services of "AA", or better unless otherwise approved by each insurer of then effective municipal bond guaranty insurance with respect to the payment of the prinicpal of and interest on the Bonds or (B) invested, including investments held in book-entry form, in (i) direct obligations of the United States of America, (ii) obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general ob1igations or, (m) to the extent permitted by law, evidences of indebtedness issued, insured or guaranteed by such governmental agencies, as the Federal Home Loan Banks, Government National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mortgage Association; provided that all such deposits and investments shall have a par value (or market value when less than par) exclusive of accrued interest at all times at least equal to the amount of money credited to such Funds, and shall be made in such manner that the money required to be expended from any Fund will be available at the proper time or times. Money in the Reserve 1037f -18-