Ordinance 1139-85 - Laserfiche WebLink

Notwithstanding anything in this Section 7 to the contrary, the City may fund the Reserve Account Requirement for any Parity Bonds through a surety bond issued by a Qualified Insurer. The amount payable by the Qualified Insurer under such surety bond shall be credited against the amounts otherwise required to be accumulated and maintained in the Reserve Account for such Parity Bonds . The City further covenants and agrees that when the required deposits have been made into any Reserve Account, it will at all times maintain therein an amount at least equal to the Reserve Account Requirement, as redetermined in each calendar year with respect to the Parity Bonds secured by such Reserve Account. Whenever there is a sufficient amount in the Revenue Bond Fund, including all accounts therein, to pay the principal of, premium, if any, and interest on all outstanding Parity Bonds, the moneys in each Reserve Account may be used to pay the principal of, premium, if any, and interest on the Parity Bonds secured thereby. Moneys in a Reserve Account may also be withdrawn to redeem and retire, and to pay the premium, if any, and interest due to such date of redemption, on the outstanding Parity Bonds secured by such Reserve Account, as long as the moneys remaining on deposit in such Reserve Account are at least equal to the Reserve Account Requirement determined with respect to such Parity Bonds then outstanding. In the event there shall be a deficiency in the Debt Service Account to meet maturing installments of either interest on or 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 -22- WMD202 85/06/10