Ord 1999-011 - Laserfiche WebLink

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Section 7.02. Control and Delivery of Bonds. (a) The Mayor of the City is hereby authorized to have control of the Initial Bond and all necessary records and proceedings pertaining thereto pending investigation, examination and approval of the Attorney General of the State of Texas, registration by the Comptroller of Public Accounts of the State of Texas, and registration with, and initial exchange or transfer by, the Paying Agent/Registrar. (b) After registration by the Comptroller of Public Accounts, delivery of the Bonds shall be made to the Purchaser under and subject to the general supervision and direction of the Mayor of the City, against receipt by the City of all amounts due to the City under the terms of sale. ARTICLE VIII FUNDS AND ACCOUNTS, INITIAL DEPOSITS AND APPLICATION OF MONEY Section 8.01. Fund Designations. The City hereby covenants and agrees that all revenues derived from the operation of the System shall be kept separate from other funds of the City. To that end the City hereby confirms its previous creation and establishment of the following special Funds pursuantto the ordinances authorizing the issuance of the Previously Issued Parity Obligations, to-wit: (a) The City of San Marcos Waterworks and Sewer System Revenue Fund (the "Revenue Fund"). This Fund shall be kept in the City's official depository bank. (b) The City of San Marcos Waterworks and Sewer System Revenue Bonds Interest and Sinking Fund (the "Interest and Sinking Fund"). This Fund shall be kept at an official depository bank of the City. Money deposited in this Fund shall be used to pay principal of and interest on the Parity Revenue Obligations when and as the same shall become due and payable. (c) The City of San Marcos Waterworks and Sewer System Revenue Bonds Reserve Fund, (the "Reserve Fund"). This Fund shall be kept at an official depository bank of the City. Money deposited in this Fund shall be used to pay principal of and/or interest oq the Parity Revenue Obligations falling due at any time when there is not sufficient money available in the Interest and Sinking Fund. The special Funds herein provided shall continue to be maintained at all times while any of the Parity Revenue Obiigations remain outstanding. Section 8.02. Initial Deposits: Construction Fund. On the Closing Date, the City shall cause the proceeds from the sale of the Bonds to be deposited as follows: (i) first, all accrued interest on the Bonds from the Original Issue Date until the Closing Date and premium, if any, shall be deposited to the credit of the Interest and Sinking Fund; (ii) second, the remaining balance, less any amounts paid at Closing as costs of issuance, shall be deposited to the credit of a construction fund or funds. R,\SANMAR\ wwss. 99\DOCS\ORDNCFN. WPD 21