Ord 1991-021 - Laserfiche WebLink

Home Browse Search

kept separate and apart from all other funds, and shall be expended and used only in the manner and order specified below, all as permitted and defined by applicable statutes: (a) Current Expenses of the System shall be payable from month to month as a first charge against the Water and Sewer System Revenue Fund as the same become due and payable. The City covenants and agrees that the Current Expenses of the operation of the System in any year will not exceed the reasonable and necessary amounts therefor. (b) There has been created, established, and maintained in a bank which is a member of the Federal Deposit Insurance Corporation, pursuant to the Ordinance authorizing the Outstanding Bonds, a separate account known as the "Water and Sewer System Junior Lien Revenue Bond Interest and Sinking Fund", (the "Water and Sewer System Junior Lien Bond Fund"). Said Fund is hereby confirmed and shall be used exclusively for the purpose of paying principal and interest on the Outstanding Bonds, the Bonds, and Additional Bonds hereafter issued to be on a parity with the Outstanding Bonds and the Bonds. The City covenants and agrees that so much of the proceeds from the sale of the Bonds as represents accrued interest thereon shall be deposited to the credit of the Water and Sewer System Junior Lien Bond Fund concurrently with the receipt of such proceeds. Thereafter, and after providing for the payment of Current Expenses of the System, and in addition to the payments required by the Ordinances authorizing the Outstanding Bonds for the payment of the principal and interest on the Outstanding Bonds, there shall be transferred from the Water and Sewer System Revenue Fund to the Water and Sewer System Junior Lien Bond Fund, on or before the lOth day of each month, such amounts in equal monthly installments as will be sufficient (i) to pay the interest scheduled to come due on the Bonds on the next Interest Payment Date and the next maturing principal of the Bonds, until the funds and/or investments in the Water and Sewer System Junior Lien Bond Fund are sufficient to pay debt service requirements on the Outstanding Bonds and Bonds for the then current year, and (ii) to accumulate within sixty-one months from the Original Issue Date, as the debt service reserve for the Outstanding Bonds and the Bonds, an amount, which, together with the amount then on deposit in and credited to the debt service reserve established and maintained with respect to the Outstanding Bonds, is equal to the greater of (A) the average annual requirement- for the payment of the principal of and interest on the outstanding Outstanding Bonds and Bonds or (B) the greatest amount requi red to be maintained as such debt service reserve by the ordinances authorizing the issuance of the Outstanding Bonds, and thereafter, such sums as may be necessary to pay when due the then current year's debt service and maintain a debt service reserve in the amount hereinabove required; provided, however, that, from and after the date that the Outstanding Bonds are no longer outstanding, and while any Bonds or Additional Bonds are outstanding, the amount of 4172f -23-