2011/03/02 Council Agenda Packet

1 (a) With respect to Covered Bonds, the Reserve Requirement shall be equal to the least of: (1) Maximum Annual Debt Service for Covered Bonds, (2) 10% of the initial principal amount of Covered Bonds of each series, and (3) 125% of average annual debt service for Covered Bonds; provided, however, that the dollar amount required to be contributed, if any, as a result of the issuance of a series of Future Parity Bonds shall not be greater than the Tax Maximum. If the dollar amount required to be contributed at the time of issuance of a series exceeds the Tax Maximum, then the amount required to be contributed shall be equal to the Tax Maximum. (b) With respect to other series of Parity Bonds, the Reserve Requirement shall be equal to the amount specified in the ordinance authorizing the issuance of that series of Parity Bonds. The Reserve Requirement shall be adjusted accordingly and remain in effect until the earlier of(i) at the City's option, a payment of principal of Parity Bonds or (ii) the issuance of a subsequent series of Future Parity Bonds (when the Reserve Requirement shall be re-calculated). Revenue Bond Fund means the "Fund 401 — Public Works-Utilities Bond Redemption Subaccount" created in the office of the Treasurer for the sole purpose of paying and securing the payment of the principal of, premium, if any, and interest on Parity Bonds. Revenue Fund means the Water and Sewer Revenue Fund of the City created by Section 6 of Ordinance No. 536-78, now known as Fund 401 —Public Works—Utilities and shall include cash accounts therein. Revenue of the System, prior to the New Covenant Date, means all earnings, revenue and money received by the City from or on account of the operation of the System, except -8q P:120287_CMW\20287_960 02/07/11