Ordinance 1139-85 - Laserfiche WebLink

1 r moneys therefrom. Any deficiency created in suchReserve 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 6 of this ordinance. Notwithstanding anything in this Section 7 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 Refunding Bonds from the Bond Insurer. D. Priority of Lien of Payments into Revenue Bond Fund. The amounts so pledged to be paid into the Debt Service Account, the 1985 Sinking Fund Account and the 1985 Reserve Account from the Revenue Fund are hereby declared to be a lien and charge upon the Revenue of the System prior and superior to all other charges of any kind or nature whatsoever except the Costs of Maintenance and Operation and the lien and charge of the Refunded Bonds (full provision for the payment of which has irrevocably been made) , and except that the amounts so pledged are of equal lien to the charges upon such Revenue which may hereafter be made for the payment of the principal of and interest on any future Parity Bonds. E. Application and Investment of Moneys in Revenue Bond Fund. Money in the Debt Service Account, any Sinking Fund Account and any Reserve Account shall be invested in Permitted Investments as permitted by law. Investments in the -23- WMD202 85/06/10