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before the maturity date thereof or to purchase "Government Obligations," as such obligations are <br /> now or hereafter defined in Chapter 39.53 RCW, as amended, or its successor statute, if any, <br /> sufficient to accomplish such amortization. <br /> C. Payments into Reserve Account. <br /> (1) Provisions Applicable While 1988 Bonds, 1992 Bonds, 1992 State <br /> Bond and 1993 Bonds Remain Outstanding. A special account to be known as the "1997 Water <br /> and Sewer Revenue Bond Reserve Account" (the "1997 Reserve Account") is hereby created in <br /> the Revenue Bond Fund for the purpose of securing the payment of the principal of and interest <br /> on the Bonds. The City covenants and agrees that it will satisfy the Reserve Account <br /> Requirement for the Bonds by providing a surety bond issued by the Bond Insurer. <br /> Except as hereafter provided in this subsection C(1) and in subsection C(2) hereof, the <br /> City hereby further covenants and agrees that in the event it issues any future Parity Bonds it will <br /> provide in the ordinance authorizing the issuance of the same for the creation of a Reserve <br /> Account for such future Parity Bonds and for the payment into such Reserve Account out of the <br /> Revenue of the System or Assessments (or, at the option of the City, out of any other funds on <br /> hand and legally available therefor) approximately equal additional annual installments so that by <br /> five years from the date of issuance of such future Parity Bonds there will have been paid into <br /> such Reserve Account an amount which, together with the money already on deposit therein, will <br /> be at least equal to the Reserve Account Requirement for such future Parity Bonds. Such annual <br /> payments into a Reserve Account shall be made not later than December 20 of each year. <br /> Notwithstanding anything in this Section 8 to the contrary, the City may fund the Reserve <br /> Account Requirement for any Parity Bonds through a surety bond issued by a Qualified Insurer. <br /> The amount payable by the Qualified Insurer under such surety bond shall be credited against the <br /> amounts otherwise required to be accumulated and maintained in the Reserve Account for such <br /> Parity Bonds. <br /> The City further covenants and agrees that when the required deposits have been made <br /> into any Reserve Account, it will at all times maintain therein an amount at least equal to the <br /> -18- FWWOBU.DOC 97/03/04 <br />