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date of the Parity Bonds or any Additional Bonds then out-
standing. On or before the 10th day of each month, after
payments have been made as required by subsection (a) of
this Section 11, the City shall withdraw from the Utility
System Revenue Fund and deposit in the Bond Fund an amount
not less than the total of: 1/12th of the next maturing
installment of principal of the Parity Bonds then outstanding,
and of any Additional Bonds then outstanding, and 1/6th of
the next semi-annual installment of interest on the Parity
Bonds then outstanding and on any Additional Bonds then
outstanding. The monies in the Bond Fund shall be used
solely for the purpose of paying the interest on the principal
of the Parity Bonds, and any Additional Bonds, until all
such bonds have been retired. In the event the income and
revenues of the Utility System are insufficient in any month
to permit the required deposits into the Bond Fund in full
accord with the provisions hereof,* then the amount of 'any
deficiency shall be added to the amount otherwise required
to be deposited in said Bond Fund in the next month, until
all deficiencies are rectified.
That concurrently with the delivery of the Bonds to the
purchasers thereof, all sums of money received from the
purchasers as accrued interest paid on the Bonds shall be
placed in the Bond Fund.
(c) RESERVE FUND: Commencing September 10, 1981, and
on or before the 10th day of each month thereafter, after
payments have been made as required by subsections (a) and
(b) of this Section 11, the City shall withdraw from the
Utility System Revenue Fund and deposit in the Utility
System Revenue Bond Reserve Fund (already established and
hereinafter called the "Reserve Fund"), in addition to the
payments and deposits otherwise required to be made therein,
the sum of $ until an additional debt service
reserve of $ on the outstanding Bonds has been
established, and thereafter, such sums monthly as may be
necessary to maintain the required reserve of $
on the Parity Bonds. The City covenants and agrees that in
the event Additional Bonds are issued as hereinafter provided,
the Ordinance authorizing such Additional Bonds shall provide
for the payment into the Reserve Fund of such additional
sums as shall be necessary to permit an accumulation in the
Reserve Fund, within five years and one month from the date
of the Additional Bonds, as an additional reserve, of an
amount of money at least equal to one year's average annual
principal and interest requirements on the Additional Bonds
then outstanding. The Reserve Fund shall be used to pay
principal of or interest on the Parity Bonds and such Addi-
tional Bonds falling due at any time for the payment of
which there is no money available in the Bond Fund. No
payments need be made into the Reserve Fund after there
shall have been accumulated and shall exist in said Fund the
amount of money herein stipulated; but if at any time it
becomes necessary to use temporarily any part of such Reserve
Fund for the payment of principal or interest, or it is
otherwise depleted, payments into the Reserve Fund sbn].l be
resumed and continued until such time as such Fund contains
the amount of money then required to be on deposit therein.
The City's official Depository is hereby authorized to
invest the money in the Reserve Fund in direct obligations
of or obligations unconditionally guaranteed by the United
States Government, having maturities not in excess of five
(5) years from the date of the making of such investments,
as the City Council may direct. Said obligations shall be
deposited in escrow with said Depository under an escrow
agreement, and if at any time uninvested funds shall be
insufficient to permit payment of principal and interest
maturities of the Parity Bonds or any Additional Bonds then
outstanding as heretofore directed, said Depository shall
sell on the open market such amount of the securities as is
required to pay said Parity Bonds or Additional Bonds and