Ordinance 1433-88 - Laserfiche WebLink

principal of and interest on the Parity Bonds of any issue, or a deficiency in any Sinking Fund Account to meet the required schedule of payments for amortization of Term Bonds of any issue of Parity Bonds, such deficiency shall be made up from the Reserve Account for such Parity Bonds by the withdrawal of moneys therefrom. Any deficiency created in such Reserve Account by reason of any such withdrawal shall then be made up out of Revenue of the System or Assessments after making necessary provision for the payments required to be made by subparagraphs First through Fifth, inclusive, of Section 8 of this ordinance. Notwithstanding anything in Section 9 .E hereof to the con- trary, moneys in the 1988 Reserve Account may be used to pay the Arbitrage Earnings Amount, if any, to the extent the Arbitrage Earnings Amount is attributable to earnings on moneys in the 1988 Reserve Account. Notwithstanding anything in this Section 9 to the contrary, the City shall not be obligated to accumulate and maintain in the Reserve Account for any Parity Bond issue an amount at least equal to the Reserve Account Requirement for such Parity Bonds if the timely payment of the principal of and interest on such Parity Bonds shall be guaranteed by an unconditional and irrevocable policy of municipal bond insurance issued by a Qualified Insurer. The City hereby covenants and agrees to purchase, or cause the purchase of, a policy of municipal bond insurance with respect to the 1988 Bonds from the Bond Insurer. D. Priority of Lien of Payments into Revenue Bond Fund. The amounts so pledged to be paid into the 1988 Debt Service Subaccount, the 1988 Sinking Fund Account, and the 1988 Reserve Account from the Revenue Fund are hereby declared to be a lien and charge upon the Revenue of the System junior in lien to the Costs of Maintenance and Operation and the lien and charge of the Refunded Bonds ( full provision for the payment of which has -30- KR180 88/01/11