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<br /> such debt service reserve to be accumulated and maintained shall be <br /> equal to not less than the average annual requirement for the <br /> payment of the principal of and interest on the outstanding Bonds <br /> and Additional Bonds. <br /> (c) There is hereby confirmed, and the City shall continue <br /> to maintain in a bank which is a member of the Federal Deposit <br /> Insurance Corporation, so long as any of the Outstanding Bonds, <br /> Bonds or Additional Bonds are outstanding, a "Water and Sewer System <br /> Replacement and Repair Fund", into which the sum of $1,156.92, or <br /> such portion thereof as is available, shall be deposited on or <br /> before the lOth day of each month from the net revenues of the <br /> combined water and sewer system unti I the funds and/or investments <br /> therein shall amount to $179,415.00. Funds in said Water and Sewer <br /> System Replacement and Repair Fund shall be used to pay for any <br /> extraordinary repairs or replacements to the System for which funds <br /> are not otherwise available and to pay maturing principal or <br /> interest on the Outstanding Bonds, Bonds and Additional Bonds when <br /> funds in the Water and Sewer System Junior Lien Bond Fund are <br /> inadequate for such purposes. Whenever any funds are paid out of <br /> said Water and Sewer System Replacement and Repair Fund, payments <br /> into the account shall be resumed and continued until such time as <br /> the account has been restored to the level of $179,415.00. <br /> Subject to the foregoing, which are cumulative, any balance in <br /> the Water and Sewer System Revenue Fund may be used for the purpose <br /> of paying the cost of unusual or extraordinary maintainance, repairs <br /> and replacements, or for extensions and improvements which will <br /> either enhance the revenue-producing capacity of the Water and Sewer <br /> System or provide a higher degree of service, or for acquiring the <br /> Outstanding Bonds, Bonds or Additional Bonds for cancellation, or <br /> for redeeming the Outstanding Bonds, Bonds or Additional Bonds in <br /> inverse numerical and maturity order at not to exceed the redemption <br /> price, or for any other lawful purpose. <br /> Section 7.02. Security for Funds. All funds created by this <br /> Ordinance shall be secured in the manner and to the fullest extent <br /> permitted by law for the security of public funds, and such funds <br /> shall be used solely for the purposes permitted by this Ordinance. <br /> Section 7.03. Investment of Funds. Funds on deposit to the <br /> credit of the accounts and funds hereinabove established and <br /> maintained in conformity with the provisions of this Ordinance shall <br /> be invested by the Depository Bank, upon the request of the City, in <br /> direct obligations of, or obligations the principal of and the <br /> interest on which are guaranteed by, the United States Government. <br /> The investments shall be valued in terms of current market value as <br /> of June 30th and December 31st of each year. Any obligations in <br /> which money is so invested shall be held subject to the same lien as <br /> the money which was used to purchase such obligations and shall be <br /> sold when so ordered by the City, and the City shall in all events <br /> order such sale when necessary to prevent any default in connection <br /> with the Outstanding Bonds, Bonds or Additional Bonds. <br /> 4172f <br /> -24- <br />