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the City, may transfer such excess amount to any fund or funds established for the payment of or <br />security for the Parity Revenue Obligations (including any escrow established for the final <br />payment of any such obligations pursuant to Tex. Gov't Code Ann., ch. 1207) or use such excess <br />amount for any lawful purpose now or hereafter provided by law; provided, however, that except <br />as otherwise may be permitted by applicable law, any portion of such amount constituting <br />proceeds of bonds or other obligations of the City, or taxes, may be used only for purposes for <br />which such proceeds or taxes could have been used lawfully at the time of the deposit thereof <br />into the Reserve Fund. <br />(d) In the event (a) the issuer of a surety policy becomes insolvent, or (b) the issuer of <br />a surety policy defaults in its payment obligations thereunder, or (c) the claims paying ability of <br />the issuer of the surety policy falls below "AAA" by S&P or "Aaa" by Moody's, the obligation to <br />reimburse the issuer of the surety policy shall be subordinate to the cash replenishment of the <br />Reserve Fund. In the event (a) the rating of the claims paying ability of the issuer of the surety <br />policy falls below "AAA" by S&P or "Aaa" by Moody's, the City shall either (i) deposit into the <br />Reserve Fund, in accordance with this section, an amount sufficient to cause the money or <br />investments on deposit in the Reserve Fund to accumulate to the average annual principal and <br />interest requirements on the Parity Revenue Obligations within thirty-six (36) months, or (ii) <br />replace such instrument with a surety policy, within six (6) months of such occurrence. In the <br />event (a) the rating of the claims -paying ability of the issuer of the surety policy falls below "A" <br />by S&P or Moody's, or (b) the issuer of the surety policy defaults in its payment obligations <br />hereunder, or (c) the issuer of the surety policy becomes insolvent, the City shall either (i) <br />deposit into the Reserve Fund, in accordance with this section, amounts sufficient to cause the <br />money or investments on deposit in the Reserve Fund to accumulate to the average annual <br />principal and interest requirements on the Parity Revenue Obligations, or (ii) replace such <br />instrument with a surety policy, within six (6) months of such occurrence. <br />Section 8.06. Escrow Fund. <br />(a) Money on deposit in the Escrow Fund, including investment earnings thereof, <br />shall be used for the purpose of refunding the Refunded Obligations in accordance with the <br />Escrow Agreement. <br />(b) Any amounts remaining in the Escrow Fund after the accomplishment of the <br />purposes for which the Bonds are hereby issued, including investment earnings of the Escrow <br />Fund, shall be deposited into the Interest and Sinking Fund. <br />(c) Regions Bank is hereby designated as the Escrow Agent. The execution and <br />delivery of the Escrow Agreement, specifying the duties and responsibilities of the City and the <br />Escrow Agent, is hereby approved with such changes as may be approved by the Mayor of the <br />City, and the Mayor and City Cleric of the City are hereby authorized to execute such agreement. <br />SANMARCOS/W W W SRev2017B- Ordinance <br />28 <br />