Ordinance 3633 - Laserfiche WebLink

charges necessary to pay the principal of and interest on the Out- standing Prior Lien Revenue Bonds, and equal in rank to any charges which may later be made upon such gross revenue to pay the principal of and interest on any Parity Revenue Bonds . Section 6. That there be and is hereby created a Reserve Account (herein called the "Reserve Account" ) in the Bond Redemption Fund, and the city hereby covenants and agrees that it will set aside and pay into said Reserve Account out of the gross revenue of the System monthly payments in the sum of at least $3,667 commencing with the month of November, 1957 so that by November 1, 1962 there shall have been paid into the Reserve Account the sum of at least $220,000. The city further agrees that additional payments shall be made into the Reserve Account if necessary, so that at all times after the month of November, 1962 there will be an amount maintained in the Reserve Account which, with the $100,000 required to be maintained in the reserve account created to secure the payment of the principal of and interest on the Outstanding Prior Lien Revenue Bonds, will be equal to the average annual debt service on the Bonds outstanding and such Outstanding Prior Lien Revenue Bonds . When the city has sufficient funds to redeem and retire all of the Outstanding Prior Lien Revenue Bonds, the moneys in the reserve account created to secure the payment of the principal of and interest on such bonds may be used to effect such redemption or may be transferred to the Reserve Account . In the event such moneys are used to redeem and retire such Outstanding Prior Lien Revenue Bonds, the city covenants and agrees that it will pay an additional sum of at least S100,000 into the Reserve Account out of the gross revenue of the System first available after making necessary provision for the payment of main- tenance and operation expenses of the System and for the required payments into the Bond Redemption Fund. -7-