HomeMy WebLinkAbout0139_0038(b) to establish and maintain the Interest and Sinking
Fund and the Reserve Fund for the Parity Bonds and for any
Additional Bonds,
(c) to pay, in addition, all outstanding indebtedness
against the Utility System other than the Parity Bonds, or any
Additional Bonds, as and when the same becomes due, and
(d) to provide for the payments into the "Contingency
Fund" as required under the provisions of the ordinances
authorizing the issuance of the Parity Bonds
Section 12. UTILITY SYSTEM REVENUE FUND There shall be
deposited in the Utility System Revenue Fund (already esta-
blished) as collected all revenues derived from the operation
of the Utility System, which fund shall be maintained separate
and apart from all other funds of the Issuer Such Utility
System Revenue Fund shall be maintained so long as any Parity
Bonds, or any Additional Bonds, remain outstanding, in the
Issuer's official depository, and shall be administered as
follows
(a) Operation and Maintenance Expenses The money in the
Utility System Revenue Fund shall be used first for th payment
of the reasonable and proper expenses of operating and main-
taining the Utility System, including salaries, labor, ma-
terials, interest, repairs and extensions necessary to render
efficient service The words "repairs" and "extensions" as
used in this paragraph shall be construed to refer only to such
repairs and extensions, as in the judgment of the governing
body of the Issuer, are necessary to keep the System in opera-
tion and render adequate service to the Issuer and the inhabi-
tants thereof, or such as might be necessary to remedy some
physical accident or condition which would otherwise impair the
security of the Parity Bonds or any Additional Bonds
(b) Bond Fund The amounts to be paid into the Utility
System Revenue Bonds Interest and Sinking Fund (already esta-
blished and hereinafter called the "Bond Fund") during each
year in whish any of the Parity Bonds, or any Additional Bonds
are outstanding, shall be an amount equal to 100 per cent of
the amount required to meet the interest and principal payments
falling due on or before the next maturity date of the Parity
Bonds or any Additional Bonds then outstanding On or before
the 10th day of each month, after payments have been made as
required by subsection (a) of this Section 12, the Issuer 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 outbtanding,
and 1/6th of the next semiannual installment of interest on the
Parity Bonds then outstanding and on any Additional Bonds then
outstanding. The monies in the Bond F>>nd shall be used solely
for the purpose of paying the interest on tbs principal of the
Parity r3onds, and an%,,, Additional Bands, until all such bonds
have been retired In the event the incomc 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 pur-
chasers as accrued interest paid on the Bonds shall be placed
in the Bond Fund
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