Ordinance 941-83 - Laserfiche WebLink

The bonds of this issue are not general obligations of the City. The City hereby covenants and agrees with the owner and holder of this bond that it will keep and perform all the covenants of this bond and of the Bond Ordinance to be by it kept and performed. The City does hereby pledge and bind itself to set aside out of the Revenue of the System into the Revenue Bond Fund and the Reserve Account created therein the various amounts required by the Bond Ordinance to be paid into and maintained in said Fund and Account, all within the times provided by the Bond Ordinance. To the extent more particularly provided by the Bond Ordinance the amounts so pledged to be paid out of the Revenue of the System into the Revenue Bond Fund and the Accounts therein shall be a prior lien and charge upon the Revenue of the System superior to all other charges of any kind or nature whatsoever except the Costs of Maintenance and Operation of the System (as defined in the Bond Ordinance) and the lien and charge of the amounts payable to Public Utility District No. 1 of Snohomish County under an agreement dated July 21, 1961, the water revenue bonds of the City dated April 1, 1963, and December 1, 1965, and the sewer revenue bonds of the City dated September 1, 1960, July 1, 1963, and May 1, 1969 (herein and in the Bond Ordinance called the "Refunded Bonds" ) , and except that said amounts are equal in rank to the lien and charge upon such Revenue of any amounts required to pay and secure the water and sewer revenue bonds of the City issued under date of August 1, 1978, August 1, 1980, and January 1, 1982, and any water and sewer revenue bonds of the City hereafter issued on a parity with the bonds of this issue (herein and in the Bond Ordi- nance called "Parity Bonds" ) . The City has irrevocably made full provision for the payment of the Refunded Bonds. The City has further bound itself to maintain the System in good repair, working order and condition, to operate the same in an efficient manner and at a reasonable cost, and to fix, maintain and collect rates and charges for as long as any of the bonds of this issue are outstanding that will make available, for the payment of the principal thereof and interest thereon as the same shall become due, Net Revenue (as defined in the Bond Ordinance) in an amount which, together with Assessment Income (as defined in the Bond Ordi- nance) will be equal to at least 1 .25 times the Maximum Annual Debt Service (as defined in the Bond Ordinance) . The pledge of Revenue of the System and other obliga- tions of the City under the Bond Ordinance may be discharged at or prior to the maturity or redemption of the bonds of this issue upon the making of provisions for the payment thereof on the terms and conditions set forth in the Bond Ordinance. Reference to the Bond Ordinance and any and all modifi- cations and amendments thereof is made for a description of the nature and extent of the security for the bonds of this -27- WMD20 83/05/02