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<br />I <br /> <br />Section XIII. creating Special Funds; Use of Surplus Funds. <br />The City covenants and agrees that so long as any of the Bonds are <br />outstanding, it will maintain in a bank which is a member of the <br />Federal Deposit Insurance Corporation, a special account to be <br />known as the "Water and Sewer System Revenue Fund". into which <br />Fund shall be deposited as received all income and revenue arising <br />from the operation or ownership of the combined water and sewer <br />system, and shall be kept separate and apart from all other funds, <br />and shall be expended and used only in the manner and order specified <br />below, all as permitted and defined by applicable statutes: <br />(a) Current Expenses of the System shall be payable from month <br />to month as a first charge against the Water and Sewer System <br />Revenue Fund as the same become due and payable. The City covenants <br />and agrees that the Current Expenses of the operation of the <br />System in any year will not exceed the reasonable and necessary <br />amounts therefor. <br />(b) There is hereby created and ordered to be established, and <br />the City shall maintain in a bank which is a member of the Federal <br />Deposit Insurance Corporation, so long as any of the Bonds are <br />outstanding, a separate account to be known as the "Water and Sewer <br />System Junior Lien Revenue Bond and Interest Sinking Fund", (herein <br />sometimes referred to as the "Water and Sewer System Junior Lien <br />Bond Fund"), ,to be used exclusively for the purpose of paying <br />principal and interest, on the Bonds. The City covenants and agrees <br />that So much of the proceeds from the sale of the Bonds as repre- <br />sents accrued interest thereon shall be deposited to the credit of <br />the Water and Sewer System Junior Lien Bond Fund concurrently with <br />the receipt of such proceeds. <br />Thereafter, when the project becomes revenue producing, and <br />after providing for the payment of Current Expenses of the System, <br />and after making provision for the payment of the principal and <br />interest on the Outstanding Bonds, there shall be transferred from <br />the Water and Sewer System Revenue Fund to the Water and Sewer <br /> <br />I <br /> <br />I <br /> <br />- 14 - <br />