Ordinance 3850 - Laserfiche WebLink

The city further agrees that it will at all times main- tain such amounts in the Reserve Account until there is a sufficient amount in the 1961 Bond Redemption Fund and Reserve Account to pay the principal of and interest on all of the Bonds outstanding, at which time the money in the Reserve Account may be used to pay such principal and interest. In the event the Bonds outstanding are ever refunded, the money in such Reserve Account may be used to retire Bonds or may be transferred to any reserve account which may be created to secure the payment of the bonds issued to refund the Bonds outstanding. In the event the moneys in the 1961 Bond Redemption Fund over and above the amount therein set aside and credited to the Reserve Account, are insufficient to meet maturing installments of either interest on or principal of and interest on the Bonds outstanding, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from the gross revenue of the System first available after making necessary provision for the payments required to be made into the 1961 Bond Redemption Fund. All money in the Reserve Account above provided for may be kept in cash or invested in direct obligations of the United States having a guaranteed redemption price prior to maturity or maturing not later than twelve years from date of purchase, and in no event maturing later than the last maturity of the Bonds out- standing at the time of such purchase. Interest earned on any such investments and/or any profits realized from the sale thereof shall be deposited in and become a part of the 1961 Bond Redemption Fund. 8.