Ord 1996-038 - Laserfiche WebLink

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o/:t Immediately following the delivery of the Bonds, the appropriate City officials shall calclÙate and detennine the average amlUa1 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 Food has been accumulated, monthly payments to said Food 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 amooot equal to the deficiency shall be resumed and continued ( to be made on or before the lOth 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 amooot 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 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 ""ill 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 ordinance authorizing the substitution of the Surety Policy for all or part of the average annual principal and interest requirements of the Parity Revenue Obligations' contains (A) a rIDding that such substitution is cost effective and (B) a provision that the interèst due on any repayment obligation of the City by reason of payments made under such policy does not exceed the highest lawful rate of interest 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 the subrogation obligation incurred by the City (including interest) to the issuer of the Surety Policy, the payment of which will result in the reinstatement of such Surety Policy, prior to making payments required to be made to the Reserve Fund pursuant to the provisions of this Section to restore the balance in such fund to the average annual principal and interest requirements of the Parity Revenue 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 stich excess amotlllt 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. Section 8.06. Deficiencies in Funds. \ If in any month the City shall, for any reason, fail to pay into the Interest and Sinking Ftllld and Reserve Fund the full amounts required, amounts equivalent to such deficiencies shall be set apart and paid into said Funds ITom 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 othenvise paid into said Funds during such month or months. R;' ""NMAII. \ ww... ,. 'WCS'.o RD N Œ.fN 22