Ordinance 3850 - Laserfiche WebLink

a. Commencing with the month of January, 1962 and continuing as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-sixth of the amount necessary to pay the interest to become due and payable on the next interest payment date on all of the Bonds then outstanding. b. Commencing with the month of January, 1983 and continuing as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-twelfth of the principal of the Bonds to become due and payable on the next principal payment date. Said amounts so pledged to be paid into the 1961 Bond Redemption Fund and the amounts hereinafter pledged to be paid into the Reserve Account therein are hereby declared to be a prior lien and charge upon the gross revenue of the System superior to all other charges of any kind or nature except the normal cost of maintenance and operation of the System and the charges necessary to pay the principal of and interest on the Outstanding Prior Lien Bonds . Section 8. A Reserve Account (herein called the "Reserve Account") is hereby created in the 1961 Bond Redemption Fund, and the city hereby covenants and agrees that it will set aside and pay into the Reserve Account, out of the gross revenue of the System and any other moneys which it may have on hand and available for such purpose, on or prior to December 15, 1966, the sum of $50,000, which sum shall be paid in approximately equal monthly installments commencing with the month of December, 1961. The city hereby fur- ther covenants and agrees that the amount in the Reserve Account shall be increased to $170,000 on or before December 15, 1983 by payments from the same sources of approximately equal monthly in- stallments which must commence not later than the month of December, 1982. 7.