Res 1996-052 - Laserfiche WebLink

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L¡ 2A,4 and Reserve Fund is equal to the amount required to pay all ontqt..-Ming obligatims (principal aDdIcc interest) fir whicl1 said Fund \WS ae.ated and established to pay cc (ü) the Bœds are 00 looga oot..t.......-iin&. ie., fully paid as to ¡xincipal and interest oc all of the Bœds have been refunded. - (c) Any proceeds of the Bonds not n:quiœd to camp1ete the improvements and extensiœs to the System or n:quiœd to be deposited otherwise by this 0niiDance, sha1l be deposited to the Interest and Sinking Fund. Proceeds of the Bœds so ~tf'fi and ac:aued interest and ~um, if any, reœived fum the Purchaser of the Bœds may be taken ÍntD cœsidcati.œ. and reduce the amount of the manthly deposits hc:æinabove provided whicl1 'WUUld otherwise be required to be deposited in the Interest and Sinking Fund fi:cm the Net Revenues of the System. Section 8.05. Reserve Fund. (a) The City hereby covenants and agrees with the holders of the Bonds that it will provide fir the accumulation of; and when Arf"j'""'¡Jltf'fi, will thereaft.er continuoosl.y mainmin in the Reserve Fund an amount equal to not Jess than the average annual ¡xiDcipal and interest œquirements of the Parity Revenue Obligatiœs (caJrnJltf'fi on a fiæal year basis as of the date the last series of Parity Revenue Obligations were authcriz.ed). TmTT1PfiiJlt..ly following the delivery of the Boods, the appropriate City officials sha1l ca1.cuIate and dd:cmúnc the average annual principal and interest requirements .fix the Parity Revenue Obligatiœs then rnrt..t:mcling .After rW.1rl1ng the amount then on deposit in the Reserve Fund fum such calculation, the amount of the difference, if any, sha1l be deposited in the R=ve Fund in sixty (60) substantially equal monthly payments on oc before the 10th day of each month; the iDitial mœth1y deposit to be made OIl cc before the 10th day of the month next following the month the Bonds are delivered. After the total amount required to be OIl deposit in the Reserve Fund has been accumulated, monthly payments to said Fund may be t=inated; provided, however, should the amount on deposit therein be reduced below the sum n:quiœd to be maintained in said Fund after the - same: has been accumuI8téd, payments to said Fund in an amount equal to the: deficieDI.:y sha1l be resumed and cnnnnnro to be made on cc befcre 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 mœey in the Reserve Fund is used .fix an authorized pmpose while IOOD1hly payments are being made to said Fund, the amount required to restaœ the sum. then required to be OIl deposit therein sha1l be added to the payments then being made in the following month ex- mœths until the total amount then required to be on deposit in said Fund has been fully:rest.Œ'ed.. (b) Notwithstanding the requirements of subsection (a) of this &ction 8.05, the City may ¡xovide a Surety Policy oc Policies issued in amowlts equal to all oc part (as may be specified in the ordinance authorizing any series of Parity Revenue Obligatioos) of the average annual principal and interest requirements of the Parity Revenue Obl.igatiobs in lieu of depositing cash. into the Reserve F1.md; provided, however, that no such Surety Policy may be so substituted unless the substitution of the Surety Policy ",ill not cause any ratings then assigned to the Bonds by either Moody's Investa:s Service a: Standard & Peer's RBtings Group to be lowered and the ooiinance authorizing the StIÒ-'>tÌtllnon of the Surety Policy far all oc part of the average annual principal and interest œquirements of the Parity Revenue Obligatiœs contains (i) a .fincling that such substitution is cost effective and (ü) a ¡rovision that the interest due on any repayment obligation of the City by reason of payments made III:Jde:r such policy does not exceed the h.igbest lawfiù mte ofinterest which. may be paid by the City at the time of the delivery of the Surety Policy. The City reserves the right to apply the proceeds of the Revenue Fund to payment of (i) periodic premiums en the Surety Policy prior to payment ofMaint.enance and Operation Expenses, and (ü) any repayment obligation incuxred by the City (including interest) to the issuer of the Surety Policy, the payment of whicl1 will rcsuIt in the re:instJltPnV"'flt of such &Jrety Policy, ¡rice to ma1ång payments required to be made to the Reserve Fund puxsuant to the provisioos of this Section to restaœ the balance in such fimd to the average annual principal and interest requirements of the Parity Revenue Obligaticns. In the event a Surety Policy issued to satisfy all ex- part of the City's obligation with respect to the Reserve Fund causes the amount then en deposit in the Reserve Fund to exceed the average annual ¡:rincipal and interest requirements of all Parity Revenue Ob1igllnnn~, the City may transfer such excess amount to any fimd (J{" funds established .fix the payment of oc security .fix the Parity Revenue Bœds (including any escrow established .fix the final pa}oment of any such obligations pursuant to Article 717k, VenJ/J1'S Texas Civil Statutes), ex- fa: any lawfì.ù purpose of the City. Section 8.06. Deficiencies in Funds. If in any ~ the City sha1l, fir any :reason, fail to pay ÍntD the Interest and Sinking Fund and Reserve Fund the full amounts above stipulated, amounts equivalent to such ~ sha1l be set apart and paid ÍntD said Funds fta:n the fu3t available aDd 111'U111"""tl"f'l revenues of the System fir the fo11owing month ex- mcnths and such payments sha1l be in addition to the amounts hereinabove provided to be othcwise paid into said Funds during such month ce months. Sectien 8.07. Excess Revenues. AD.y revenues in excess of those required to establish and maintain the Funds as above required may be used to purchase and retire Pricrity Obligatiœs and/cc Parity Revenue Obligatiœs in the open marlœt at not ~ the marlœt value thereof; the redemption of such obligations, or fee any lawfì.ù purpose now a: hereafter provided by law. 19