HomeMy WebLinkAbout0140_0039(c) Reserve Fund The Issuer currently has on deposit in
the Reserve Fund $384,418, and has covenanted in the most re-
cently adopted bond ordinance authorizing the issuance of the
City of Georgetown, Texas Utility System Revenue Bonds, Series
1981, to maintain a required reserve of $212,895 The Issuer
does not need to deposit additional amounts in the Reserve Fund
since the average annual principal and interest requirements on
the outstanding bonds after the issuance of these bonds will be
$329,689, which is less than the amount on deposit in this
Fund, therefor, the Issuer hereby covenants to maintain the
required reserves of $329,689. The Issuer 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 addition-
al 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 Additional Bonds falling due at
any time for the payment of which there is not 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 as required
reserves, but if at any time it becomes necessary to use tem-
porarily any part of such Reserve Fund for the payment of prin-
cipal or interest of the Parity Bonds, or it is otherwise de-
pleted, payments into the Reserve Fund in the amount of $
monthly shall be initiated until such time as such Fund con-
tains the amount of money then required to be on deposit there-
in The Issuer'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 the interest thereon when due,
and shall give due notice thereof to the Issuer All money
resulting from the maturity of the principal and interest of
the securities in which the Reserve Fund is invested may be
reinvested and accumulated in said Reserve Fund and considered
a part thereof and used for and only for the purposes herein-
above provided with respect to said Fund
When the Outstanding Bonds, Series 1966, Series 1970 and
Series 1971 have been paid off cancelled and retired, the Re-
serve Fund for the Series 1981 Bonder and Series 1984 Bonds may
be commingled with Reserve Fund established for series of bonds
hereafter issued which are similarly secured and payable from
the same source without impairment of the obligation of the
contract The Issuer further covenants that when Additional
Bonds are issued, the aggregate amount to be accumulated and
maintained in the Reserve Fund shall be not less than the aver-
age annual principal and interest requirements of all bonds
similarly secured, and any additional amount required to be
accumulated in the Reserve Fund shall be accumulated therein in
not less than five years and one month from the date of the
Additional Bonds Money in the Reserve Fund may be invested in
direct obligations of or obligations unconditionally guaranteed
by the United States Government having maturities not in excess
of five years from the date of the making of such investment
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