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(c) Payments into Reserve Account. The City hereby agrees that a special <br /> account to be known as the "City of Everett Water and Sewer Revenue Bond Reserve Account" <br /> (the "common Reserve Account") shall be maintained in the Revenue Bond Fund for the purpose <br /> of securing the payment of the principal of and interest (i) on all Parity Bonds remaining <br /> outstanding when the 1993 Bonds are no longer outstanding under the ordinance authorizing <br /> their issuance, (ii) the Bonds and (iii) any future Parity Bonds. The City hereby covenants that <br /> the Reserve Account Requirement (and the Common Reserve Requirement) for the Bonds will <br /> be fully funded as of the date of issuance of the Bonds. The Reserve Account Requirement (and <br /> the Common Reserve Requirement) shall be funded in part with the Reserve Surety Bond. Any <br /> money on hand in the 1993 Reserve Account shall be transferred to the common Reserve <br /> Account and shall be available to satisfy the Reserve Account Requirement and the Common <br /> Reserve Requirement. <br /> (1) Provisions Applicable While 1993 Bonds Remain Outstanding. <br /> This subsection (1) shall be effective for so long as the 1993 Bonds remain outstanding <br /> (projected to be July 1, 2003). The City covenants and agrees that when the required deposits <br /> have been made into 1993 Reserve Account and the 1997 Reserve Account, it will at all times <br /> maintain therein an amount at least equal to the Reserve Account Requirement for the 1993 <br /> Bonds and the 1997 Bonds, respectively, as p redetermined i n e ach c alendar year. W henever <br /> there is a sufficient amount in the Revenue Bond Fund, including all accounts therein, to pay the <br /> principal of, premium, if any, and interest on all outstanding Parity Bonds, the money in each <br /> Reserve Account may be used to pay the principal of, premium, if any, and interest on the Parity <br /> Bonds secured thereby. Money in a Reserve Account may also be withdrawn to redeem and <br /> retire, and to pay the premium, if any, and interest due to such date of redemption, on the <br /> -28- P:\CMW\CMW5NP 04/22/03 <br />