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3 <br /> the money already on deposit therein, will be at least equal to the Reserve Requirement. Such <br /> annual payments into the Reserve Account shall be made not later than December 20 of each <br /> year. <br /> Notwithstanding anything in this Section 8 to the contrary, the City may fund the Reserve <br /> Requirement, in whole or in part, through a surety bond issued by a Qualified Insurer. The <br /> 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. <br /> Provisions to be in effect from and after the New.Covenant Date. The Reserve Account <br /> shall be maintained for the purpose of securing the payment of the principal of and interest on all <br /> Covered Bonds. The City covenants- and agrees that from and after the closing and delivery of <br /> the Bonds, it will at all times, subject to the foregoing funding requirements, maintain an amount <br /> in the Reserve Account at least equal to the Reserve Requirement except for withdrawals <br /> therefrom authorized hereinafter, at all times for so long as any Covered Bonds remain <br /> outstanding. The Reserve Requirement may be maintained by deposits of cash, a Qualified <br /> Letter of Credit or Qualified Insurance, or a combination of the foregoing. In computing the <br /> amount on hand in the Reserve Account, Qualified Insurance and/or a Qualified Letter of Credit <br /> shall be valued at the face amount thereof, and all other obligations purchased as an investment <br /> of moneys therein shall be valued at cost. As used herein, the term "cash" shall include U.S. <br /> currency, cash equivalents and evidences thereof, including demand deposits, certified or <br /> cashier's check; and the deposit to the Reserve Account may be satisfied initially by the transfer <br /> of qualified investments to such account. <br /> In the event the City issues any Future Parity Bonds it will provide in the ordinance <br /> authorizing the issuance of the same for payment into the Reserve Account out of proceeds of <br /> -38- P:\20287_CMW20287_880 03/25109 <br />