Ord 1998-006 - Laserfiche WebLink

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to be made on or before the 10th day of the month next following 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 terminated; provided, however, should the amount on deposit therein be reduced below the sum required to be maintained in said Fund after the same has been accumulated, payments to said Fund in an amount equal to the deficiency shall be resumed and continued to be made on or before the 10th day of each month until the total amount then required to be on deposit in the Reserve Fund has been fully restored. In the event money in the Reserve Fund is used for an authorized purpose while monthly payments are being made to said Fund, the amount required to restore the sum then required to be on deposit therein shall be added to the payments then being made in the following month or months until the total amount then required to be on deposit in said Fund has been fully restored. (b) Notwithstanding the requirements of subsection (a) above, and only as and to the extent permitted by law, the City may provide a Surety Policy or Policies issued in amounts equal to all or part (as may be specified in the ordinance authorizing any series of Parity Revenue Obligations) of the average annual principal and interest requirements of the Parity Revenue Obligations, in lieu of depositing cash into the Reserve Fund; provided, however, that no such Surety Policy may be so substituted unless (i) the substitution of the Surety Policy will not cause any ratings then assigned to the Bonds by either Moody's Investors Service or Standard & Poor's Ratings Group to be lowered and (ii) the City Council finds that the substitution of the Surety Policy for all or part of the average annual principal and interest requirements of the Parity Revenue Obligations is cost effective. The City shall apply the proceeds of the Revenue Fund prorata to (i) the reestablishment of any cash balance required to be maintained in the Reserve Fund and (ii) the payment of subrogation obligations of the City under the terms of a Surety Policy or Surety Policies with respect to Parity Obligations. (c) In the event a Surety Policy issued to satisfy all or part of the City's obligation with respect to the Reserve Fund causes the amount then on deposit in the Reserve Fund to exceed the average annual principal and interest requirements of all Parity Revenue Obligations, the City, may transfer such excess amount to any fund or funds established for the payment of or security for the Parity Revenue Bonds (including any escrow established for the final payment of any such obligations pursuant to Article 717k, Vernon's Texas Civil Statutes) or use such excess amount for any lawful purpose now or hereafter provided by law; provided, however, that except as otherwise may be permitted by applicable law, any portion of such amount constituting proceeds of bonds or other obligations of the City, or taxes, may be used only for purposes for which such proceeds or taxes could have been used lawfully at the time of the deposit thereof into the Reserve Fund. Section 8.06. Deficiencies in Funds. If in any month the City shall, for any reason, fail to pay into the Interest and Sinking Fund and Reserve Fund the full amounts required, amounts equivalent to such deficiencies shall be set apart and paid into said Funds from the first available and unallocated revenues of the System for the following month or months and such payments shall be in addition to the amounts hereinabove provided to be otherwise paid into said Funds during such month or months. Section 8.07. Excess Revenues. Any revenues in excess of those required to establish and maintain the Funds as above required may be used to purchase and retire Parity Revenue Obligations in the open market at not exceeding the market value thereof, the redemption of such obligations, or for any lawful purpose now or hereafter provided by law. R:\.<tM'MAR\WWSS.98\.DOCS\ORDNCE 23