Ordinance 2607-02 - Laserfiche WebLink

(4) Future Parity Bonds. In the event the City issues any future Parity Bonds it will provide in the ordinance authorizing the issuance of the same for payment into the common Reserve Account out of proceeds of such future Parity Bonds, Revenue of the System or Assessments (or, at the option of the City, out of any other funds on hand and legally available therefor) approximately equal additional annual installments so that by five years from the date of issuance of such future Parity Bonds there will have been paid into the common Reserve Account (and any other Reserve Account then existing) an amount that, together with the money already on deposit therein, will be at least equal to the Common Reserve Requirement. Such annual payments into the common Reserve Account shall be made not later than December 20 of each year. (5) Surety Bonds. Notwithstanding anything in this Section 8 to the contrary, the City may fund the Common Reserve Requirement through a surety bond issued by a Qualified Insurer. The amount payable by the Qualified Insurer under such surety bond shall be credited against the amounts otherwise required to be accumulated and maintained in the common Reserve Account. (d) Priority of Lien of Payments into Revenue Bond Fund. The amounts so pledged to be paid into the 2002 Debt Service Subaccount from the Revenue Fund are hereby declared to be a lien and charge upon the Revenue of the System junior in lien to the Costs of Maintenance and Operation and the lien and charge of the Previously Refunded Bonds (full provision for the payment of which has irrevocably been made), equal to the lien of the charges upon such Revenue have heretofore been made to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and which may hereafter be made to pay and secure -24- P\CMW\CMW5BE 02/05/21