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<br />I <br /> <br />I <br /> <br />ARTICLE VIII <br /> <br />FUNDS AND ACCOUNTS, INITIAL DEPOSITS <br />AND APPLICA TION OF MONEY <br /> <br />SectIon 8 01 Fund DesIgnatlons <br /> <br />The City hereby covenants and agrees that all revenues denved from the operatlOn ofthe System shall <br />be kept separate from other funds of the Clty To that end the Clty hereby confIrms its prevlOUS creatlOn and <br />establishment of the followmg speclal Funds pursuant to the ordmances authonzing the Issuance of the PrevlOusly <br />Issued Panty OblIgatlOns, to-wit: <br /> <br />(a) The City of San Marcos Waterworks and Sewer System Revenue Fund (the "Revenue Fund") <br />ThIS Fund shall be kept m the Clty'S offiCial deposltory bank. <br /> <br />(b) The Clty of San Marcos Waterworks and Sewer System Revenue Bonds Interest and Smkmg <br />Fund (the "Interest and Slnking Fund") Tills Fund shall be kept at an officlal deposltory bank of the Clty <br />Money deposlted m thlS Fund shall be used to pay prmclpal of and interest on the Parlty Revenue OblIgatIons <br />when and as the Sallle shall become due and payable <br /> <br />(c) The CIty of San Marcos Waterworks and Sewer System Revenue Bonds Reserve Fund, (the <br />"Reserve Fund") ThIS Fund shall be kept at an official deposItory bank of the CIty Money depOSIted III thIS <br />Fund shall be used to pay prmcIpaI of and/or mterest on the ParIty Revenue ObhgatIons fallmg due at any tIme <br />when there IS not sufficlent money available m the Interest and Sinkmg Fund. <br /> <br />The special Funds herem provlded shall contmue to be mamtamed at all tlmes willie any of the PanLy <br />Revenue OblIgallons remam outstanding. <br /> <br />SectlOn 8 02 Imtlal Deposits, ConstructlOn Fund. <br /> <br />On the Closmg Date, the CIty shall cause the proceeds from the sale of the Bonds to be depOSIted as <br />follows <br /> <br />(i) fIrst, all accrued interest on the Bonds from the Original Issue Date until the Closmg <br />Date and premium, if any, shall be deposited to the credit of the Interest and Sinking Fund; <br /> <br />(ii) second, the remaining balance, less any amounts paid at Closing as costs of issuance, <br />shall be deposited to the credit of a construction fund or funds. <br /> <br />SectlOn 8 03 Revenue Fund. <br /> <br />All revenues of every nature receIved through the operatIOn of the System shall be deposited from day <br />to day as collected mto the Revenue Fund, to be kept separate and apart from all other CIty funds and accounts <br />Moneys depoSited m the Revenue Fund shall be pledged and appropriated to the following uses and m the order <br />of precedence shO\VJI. <br /> <br />Il-\.'l M'"MARIW\VSS.S17'DOCS\ORDNCE. <br /> <br />21 <br />