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(d) Contingency Fund: 'Based on' an annual review of the
experience as to the cost of•repairs "and replacements to the
Utility System necessitates( by the occurring of emergencies and
the recommendation of the Issuer's consulting engineer, the
City Council has determined that the Utility System Contingency
Fund (hereinafter (referred to as the "Contingency Fund"),
heretofore created and ordered to be established and maintained
in the amount of $15,000 is sufficient for the time being. The
Contingency Fund shall be used` to pay -(1) the cost of any
repairs or replacements to the Utility System necessitated by
the occurring of an emergency` and (2) interest on and/or'-
principal°of the Parity Bonds or any Additional .Bonds, when
other funds of the Issuer are insufficient for such purpose.
The Issuer covenants and agreesthat in the event
,Additional •Bonds are issued, the ordinance authorizing such
Additional Bonds shall provide for such appropriate additional
or larger amounts to be accumulated in the Contingency Fund as
deemed advisable�by the City Council, based on'annual review of
the. experience as to the cost of repairs and replacements to
the Utility System necessitated by the occurring of emergencies
And the recommendation of a consulting engineer.
No payments need be made into the Contingency Fund after
there shall have been accumulated in said Fund the amount of
money then required to`be on deposit therein, except that
whenever any money is paid out of said Fund.- payments ,into the
Fund shall be resumed and continued until such time as`the Fund
has been restored to the required sum.
°
The Issuer's official depository is 'hereby authorized to
invest the money in the Contingency 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 investment,. as the
City Council may direct. Any obligations in which money is so
invested _shall be kept in escrow in said depository and shall
be promptly sold'and the proceeds of the sale applied to the
making �of payment required to be made from the Contingency
Fund, whenever such payments are required to be made under the
foregoing provisions of this Ordinance.
(e)3 Surplus Funds: All monies- remaining in the' Utility
System REvenue Fund after the requirements of subsections (a),
(b), (c) and (d) of this Section 12 have been met (including
any increased payments into the aforesaid Bond Fund,: Reserve
Fund and Contingency Fund as may be necessary by reason of the..
issuance 'of Additional Bonds in the future under the provisions
of the ordinances authorizing the Parity Bonds), and after all
deficiencies shall have been made up and all replacements made,
shall be either used or accumulated for the making of -improve
ments, extensions and additions to the Utility System, or may,;;
in tue discretion of the Issuer be used for any other city pur-
pose now or hereafter permitted by law, including the use
thereof in'retiring in advance of maturity any Additional Bonds
then outstanding, in accordance with.' provisions made for their
prior redemption, or may be used to purchase the Parity Bonds'
and Additional Bonds on the open market at not exceeding the
market value thereof.- All bonds so paid, redeemed or purchased
shall be cancelled and shall not be reissued. Nothing herein
shall be construed, however, as impairing =the right of the
.Issuer to pay in accordance with the provisions thereof any
junior lien bonds hereafter legally issued by it.
Section "13., SECURITY FOR FUNDS. All monies which are to
be paid' into the depository` under the provisions ,of the
ordinances authorizing the Parity Bonds shall be secured in
accordance' with the laws of the State of Texas -applicable
thereto, and the Issuer covenants especially that such money
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