Ordinance 3380 - Laserfiche WebLink

Redemption iound. Said amounts so pledged and the amounts pledged herein to be paid into the Reserve Account hereinafter created are hereby de- clared to be a prior lien and charge upon the gross revenue of said water system and all additions and improvements thereto and extensions thereof and upon the money in said Water 'system Fund, superior to all other charges of any kind or nature except the necessary cost of main- tenance and operation of said system and except the charges necessary to pay the principal of and interest on the oustanding water revenue bonds of the city issued under date of December 1, 1945. Section 7: A Reserve Account is hereby created in said Eond Redemption Fund No. 7, and the city hereby agrees that it will set aside and pay into said Deserve Account, out of the moneys in said Water System Fund and out of any other moneys which it may now or later have on hand and available for such purpose, the sum of 100,000, which sum is to be paid into said Reserve Account as follows: July 1, 1954 - 4`30,000.00 July 1, 1955 - 420,000.00 July 1, 1956 - 30,000.00 July 1, 1957 - 4P20,000.00 The City further agrees that when said sum of '100,000 has been paid into said Reserve Account it will at all times maintain that amount therein until there is a sufficient amount in the Bond Redemp- tion Fund No. 7 and Reserve Account to pay the principal and interest to maturity of all the outstanding bonds of the issue authorized herein, In the event that there shall be a deficiency in said Bond Redemption Fund No. 7 to meet maturing installments of either principal or interest of said bonds, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency 8.