Laserfiche WebLink
obligation, if any, to such entity shall be made from payments of principal and interest on <br /> Covered Bonds from the City subject only to the prior lien thereon for the payments required <br /> hereunder to be made to registered owners of Parity Bonds. <br /> (3) Withdrawals From Reserve Account. If the balances on hand in the <br /> Reserve Account are sufficient to satisfy the Reserve Requirement, interest earnings shall be <br /> applied as provided in the following sentences. Whenever there is a sufficient amount in the <br /> Revenue Bond Fund, including the Reserve Account to pay the principal of and interest on all <br /> outstanding Covered Bonds, the money in the Reserve Account may be used to pay such <br /> principal and interest. As long as the money left remaining on deposit in the Reserve Account is <br /> equal to the Reserve Requirement, money in the Reserve Account may be transferred to the <br /> Revenue Bond Fund and used to pay the principal of and interest on Covered Bonds as the same <br /> becomes due and payable. The City also may transfer out of the Reserve Account any money <br /> required in order to prevent any Parity Bonds from becoming "arbitrage bonds"under the Code. <br /> If a deficiency in the Revenue Bond Fund for the payment of debt service on Covered <br /> Bonds shall occur, such deficiency shall be made up from the Reserve Account by the <br /> withdrawal of cash therefrom for that purpose and by the sale or redemption of obligations held <br /> in the Reserve Account, in such amounts as will provide cash in the Reserve Account sufficient <br /> to make up any such deficiency with respect to Covered Bonds, and if a deficiency still exists <br /> immediately prior to an interest payment date and after the withdrawal of cash, the City shall <br /> then draw from any Qualified Letter of Credit or Qualified Insurance for Covered Bonds in <br /> sufficient amount to make up the deficiency. Such draw shall be made at such times and under <br /> such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance <br /> shall provide. <br /> -36- P:\20287 CMW20287 BN9 10/11/16 <br />