Laserfiche WebLink
<br /> (b) The monthly deposits to the Interest and Sinking Fund <br /> for the payment of principal of and interest on the Bonds shall <br /> continue to be made as hereinabove provided until such time as <br /> (i) the total amount on deposit in the Interest and Sinking Fund and <br /> Reserve Fund is equal to the amount required to pay all outstanding <br /> obligations (principal and/or interest) for which said Fund was <br /> created and established to pay or (ii) the Bonds are no longer <br /> outstanding, i. e., fully paid as to principal and interest or all of <br /> the Bonds have been refunded. <br /> (c) Any proceeds of the Bonds not required to complete the <br /> improvements and extensions to the System, shall be deposited to the <br /> Interest and Sinking Fund. Proceeds of the Bonds so deposited and <br /> accrued interest and premium, if any, received from the Purchaser of <br /> the Bonds may be taken into consideration and reduce the amount of <br /> the monthly deposits hereinabove provided which would otherwise be <br /> required to be deposited in the Interest and Sinking Fund from the <br /> Net Revenues of the System. <br /> Section 8.05. Reserve Fund. <br /> (a) The City hereby covenants and agrees with the holders <br /> of the Bonds that it will provide for the accumulation of, and when <br /> accumulated, will thereafter continuously maintain in the Reserve <br /> Fund an amount equal to not less than the average annual principal <br /> and interest requirement of the Parity Revenue Obligations <br /> (calculated on a fiscal year basis as of the date the last series of <br /> Parity Revenue Obligations were authorized). <br /> (b) Immediately following the delivery of the Bonds, the <br /> appropriate City officials shall calculate and determine the average <br /> annual principal and interest requirements for the Parity Revenue <br /> Obligations then outstanding. After deducting the amount then on <br /> deposit in the Reserve Fund from such calculation, the amount of the <br /> difference, if any, shall be deposited in the Reserve Fund in sixty <br /> (60) substantially equal monthly payments on or before the lOth day <br /> of each month; the initial monthly deposit to be made on or before <br /> the lOth day of the month next following the month the Bonds are <br /> delivered. After the total amount required to be on deposit in the <br /> Reserve Fund has been accumulated, monthly payments to said Fund may <br /> be terminated; provided, however, should the amount on deposit <br /> therein be reduced below the sum required to be maintained in said <br /> Fund after the same has been accumulated, payments to said Fund in <br /> an amount equal to the deficiency shall be resumed and continued to <br /> be made on or before the lOth day of each month until the total <br /> amount then required to be on deposit in the Reserve Fund has been <br /> fully restored. In the event money in the Reserve Fund is used for <br /> an authorized purpose while monthly payments are being made to said <br /> Fund, the amount required to restore the sum then required to be on <br /> deposi t therein shall be added to the payments then being made in <br /> the following month or months until the total amount then required <br /> to be on deposit in said Fund has been fully restored. <br /> 4322f <br /> -28- <br />