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9 <br /> Reserve Requirement, prior to the New Covenant Date,means the least of(a) Maximum <br /> Annual Debt Service on all outstanding Parity Bonds, (b) 1.25 times Average Annual Debt <br /> Service on all outstanding Parity Bonds, or (c) 10% of the net proceeds of all outstanding Parity <br /> Bonds. From and after the New Covenant Date, the Reserve Requirement is the dollar amount <br /> to be calculated with respect to all Covered Bonds and separately with respect to other Parity <br /> Bonds. <br /> (a) With respect to Covered Bonds, the Reserve Requirement shall be equal to the <br /> least of: <br /> (1) Maximum Annual Debt Service for Covered Bonds, <br /> (2) 10%of the initial principal amount of Covered Bonds of each series, and <br /> (3) 125% of average annual debt service for Covered Bonds; provided, <br /> however, that the dollar amount required to be contributed, if any, as a result of the issuance of a <br /> series of Future Parity Bonds shall not be greater than the Tax Maximum. If the dollar amount <br /> required to be contributed at the time of issuance of a series exceeds the Tax Maximum, then the <br /> amount required to be contributed shall be equal to the Tax Maximum. <br /> (b) With respect to other series of Parity Bonds, the Reserve Requirement shall be <br /> equal to the amount specified in the ordinance authorizing the issuance of that series of Parity <br /> Bonds. <br /> The Reserve Requirement shall be adjusted accordingly and remain in effect until the <br /> earlier of(i) at the City's option, a payment of principal of Parity Bonds or (ii)the issuance of a <br /> subsequent series of Future Parity Bonds (when the Reserve Requirement shall be re-calculated). <br /> : <br /> -17- P:\20287 CMM20287 880 03/25/09 <br />