Ordinance 2298-98 - Laserfiche WebLink

A. The City reserves the right to issue future Parity Bonds for the purposes of First, providing funds to acquire, construct, reconstruct, install, or replace any equipment, facilities, additions, betterments, or other capital improvements to the System for which it is authorized by law to issue revenue bonds, or Second, refunding at or prior to their maturity, any revenue warrants, or outstanding revenue bonds or other obligations payable out of the Revenue of the System, and to pledge that payments will be made out of the Revenue of the System and into the Revenue Bond Fund and the accounts therein to pay and secure the payment of the principal of and interest on such future Parity Bonds on a parity of lien with the payments required herein to be made out of such Revenue into such Fund and accounts to pay and secure the payment of the principal of and interest on any Parity Bonds then outstanding, upon compliance with the following conditions: (1) At the time of the issuance of any future Parity Bonds there is no deficiency in the Revenue Bond Fund or any accounts therein. (2) If there are assessments levied in any utility local improvement district to pay for additions and improvements to and extensions of the System which will be constructed from the proceeds of such future Parity Bonds, the ordinance authorizing such future Parity Bonds shall require that such assessments be paid into the Revenue Bond Fund. (3) If there are assessments pledged to be paid into a warrant or bond redemption fund for revenue bonds, warrants or other revenue obligations being refunded by future Parity Bonds, the ordinance authorizing the future Parity Bonds shall require such assessments to be paid into the Revenue Bond Fund. (4) The principal of and interest on the future Parity Bonds shall be payable out of the Revenue Bond Fund, and the applicable Reserve Account requirements in Section 10 hereof shall be met. _34_ DOTOQ5 DOC 98/04/28