Ord 1997-031 - Laserfiche WebLink

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I I - Immeillately followmg the delivery of the Bonds, the appropnate Clty officlals shall calculate and deterrmne the average annual pnncIpal and mterest reqUlrements for the Panty Revenue ObhgatlOns then outstandmg. After deductmg the amount then on deposlt m the Reserve Fund from such calculatlOn, the amount ofthe dlfference, If any, shall be deposIted m the Reserve Fund III SlXty (60) substantIally equal monthly payments on or before the lOth day of each month, the lmtiaI monthly deposIt to be made on or before the 10th day of the month next followmg 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 tenmnated, provlded, however, should the amount on deposlt therem be reduced below the sum reqUIred to be mamtamed m saId Fund after the same has been accumulated, payments to saId Fund m an amount equal to the deficlency shall be resumed and contmued to be made on or before the 10th day of each month untll the total amount then reqUIred to be on deposIt m the Reserve Fund has been fully restored. In the event money m the Reserve Fund lS used for an authorized purpose whlle monthly payments are bemg made to sald Fund, the amount reqUIred to restore the sum then reqUIred to be on deposlt therem shall be added to the payments then bemg made m the followmg month or months until the total amount then reqUlred to be on deposlt m sald Fund has been fully restored. (b) NotwithstandIng the requuements of subsectlOn (a) above, and only as and to the extent pefIDllted by law, the City may proVIde a Surety PolIcy or Pohcles lssued m amounts equal to all or part (as may be speclfied m the ordmance authonzmg any senes of Panty Revenue ObhgatlOns) of the average annual prmclpal and mterest requrrements of the Panty Revenue Obligahons, m lIeu of deposltmg cash into the Reserve Fund, proVIded, however, that no such Surety Pohey may be so substltuted unless (i) the substltutlOn of the Surety Polley will not cause any ratmgs then asslgned to the Bonds by either Moody's Investors Servlce or Standard & Poor's RatIngs Group to be lowered and (li) the CIty Councll finds that the subshtutlOn of the Surety Pol1cy for all or part of the average annual prmcIpaI and lllterest reqUlrements of the ParIty Revenue OblIgatlOns lS cost effecllve The Clty shall apply the proceeds of the Revenue Fund prorata to (i) the reestablIshment of any cash balance requrred to be mamtamed m the Reserve Fund and (ii) the payment of subrogatlOn obhgatlOns of the Clty under the terms of a Surety Pohcy or Surety PolIcles wlth respect to Panty OblIgatlOns (c) In the event a Surety PolIcy lssued to satlsfy all or part of the Clty'S obhgatlOn wlth respect to the Reserve Fund causes the amount then on deposIt m the Reserve Fund to exceed the average annual prmclpal and mterest reqUlrements of all Parlty Revenue OblIgatlons, the Clty, may transfer such excess amount to any fund or funds estabhshed for the payment of or securIty for the Parlty Revenue Bonds (mcludmg any escrow estabhshed for the final payment of any such oblIgatlOns pursuant to Artlcle 7I7k, Vernon's Texas CiVIl Statutes) or use such excess amount for any lawful purpose now or hereafter provlded by law; provlded, however, that except as otherwlse may be perrmtted by apphcable law, any portlOn of such amount conshtutmg proceeds of bonds or other obligatIons of the Clty, or taxes, may be used only for purposes for whlch such proceeds or taxes could have been used lawfully at the tIme of the depOSIt thereof mto the Reserve Fund, SectIon 8 06 DeficlencIes m Funds If in any month the CIty shall, for any reason, fall to pay mto the Interest and Smkmg Fund and Reserve Fund the full amounts requued, amounts eqUlvalent to such defiCIenCIes shall be set apart and pald lllto saId Funds from the first available and unallocated revenues of the System for the followmg month or months and such payments shall be m addltlon to the amounts heremabove provlded to be otherwlse pald llltO Said Funds durlOg such month or months. R:\'s A.~~lAR\WWSS_911DOCS\ORDNCE. 23