Ord 1997-030 - Laserfiche WebLink

Home Browse Search

){14A Immediately follO\ving the delivery of the Bonds, the appropriate City officials shall calculate and determine the average annual principal and interest requirements for the Parity Revenue Obligations then outstanding. After deducting the amount then on deposit in the Reserve Fund from such calculation, the amount of the difference, if any, shall be deposited in the Reserve Fund in sixty (60) substantially equal monthly payments on or before the lOth day of each month; the initial monthly deposit to be made on or before the lOth 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 resurrled 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 Food 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 Food; provided, however, that no such Surety Policy may be so substituted unless (i) the substitution of the Surety Policy I,viU 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 fmds that the substitution of the Surety Policy for all or part of the average annual principal and interest requirements of the Parity Revenue Obligati~:ms is cost effective. The City shall apply the proceeds of the Revenue Fund prorata to (i) the r~establishment of any cash balance required to be maintained in the Reserve Fund and (ü) the payment of subrogation obligations of the City under the terms of a Surety Policy or Surety Policies vtith respect to Parity Obligations. (c) In the event a Surety Policy issued to satisfy all or part of the City's obligation \vith respect to the Reserve Food causes the amooot 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, V eroon' s Texas Civil Statutes) or use such excess amount for any la\vful purpose now or hereafter provided by law; provided, however, that except as othemise may be pemùtted 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 shal~ 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 follO\ving month or months and such payments shall be in addition to the amounts hereinabove provided to be othemise paid into said Funds during such month or months. ')~ !l."""""""\WWS"'~DOC3'ORDNŒ -..J