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1 <br /> Covered Bonds. The Bonds shall be Covered Bonds, secured by the Reserve Account. The City <br /> hereby covenants that the Reserve Requirement for the Bonds will be fully funded as of the date <br /> of issuance of the Bonds, either with cash, Bond proceeds or Qualified Insurance. The City <br /> covenants and agrees that from and after the closing and delivery of the Bonds, it will at all <br /> times, subject to the foregoing funding requirements, maintain an amount in the Reserve <br /> Account at least equal to the Reserve Requirement except for withdrawals therefrom authorized <br /> hereinafter, at all times for so long as any Covered Bonds remain outstanding. The Reserve <br /> Requirement may be maintained by deposits of cash, a Qualified Letter of Credit or Qualified <br /> Tnsurance, or a combination of the foregoing. In computing the amount on hand in the Reserve <br /> Account, Qualified Insurance and/or a Qualified Letter of Credit shall be valued at the face <br /> amount thereof, and all other obligations purchased as an investment of moneys therein shall be <br /> valued at cost. As used herein,the term"cash" shall include U.S. currency, cash equivalents and <br /> evidences thereof, including demand deposits, certified or cashier's check; and the deposit to the <br /> Reserve Account may be satisfied initially by the transfer of qualified investments to such <br /> account. <br /> Any Qualified Insurance shall not be cancelable on less than 30 days' notice to the City. <br /> In the event of any cancellation or termination of a Qualified Insurance or a Qualified Letter of <br /> Credit,the Reserve Account shall be funded as if the Covered Bonds that remain outstanding had <br /> been issued on the date of such notice of cancellation. <br /> In the event that the City elects to meet the Reserve Requirement through the use of a <br /> Qualified Letter of Credit, Qualified Insurance or other equivalent credit enhancement device, <br /> the City may contract with the entity providing such Qualified Letter of Credit, Qualified <br /> Insurance or other equivalent credit enhancement device that the City's reimbursement <br /> -118 P.120287 CM1M20287 BN9 10/11/16 <br />