Ordinance 3633 - Laserfiche WebLink

• The city further covenants and agrees that in the event it issues any Parity Revenue Bonds it will provide in the ordinance au- thorizing the issuance of the same for the payment into the Reserve Account within five years from the date of the issuance of such Parity Revenue Bonds of a sum which with the $100,000 in the reserve account created to secure the payment of the principal of and interest on the Outstanding Prior Lien Revenue Bonds and the money in the Reserve Account will be at least equal to the average annual debt service on the Outstanding Prior Lien Revenue Bonds, the outstanding Bonds and any outstanding Parity Revenue Bonds . The city further agrees that when said required amounts have been paid into the Reserve Account it will at all times maintain those amounts therein until there is a sufficient amount in the Bond Redemption Fund and Reserve Account to pay the principal of, premium if any, and interest on all of the Bonds and any Parity Revenue Bonds outstanding, at which time the money in the Reserve Account may be used to pay such principal, premium if any, and interest . In the event there shall be a deficiency in the Bond Re- demption Fund to meet maturing installments of either interest on or principal of and interest on the Bonds and any Parity Revenue 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 therefor. All money in the Reserve Account above provided for may be kept in cash or invested in direct obligations of the United States Government 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 -8-