98-039 ORD AUTHORIZE TEXAS WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1998

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Reserve Amount no deposits shall be made to the credit of the Reserve Fund; but when and if the Reserve Fund at any time contains less than the Required Reserve Amount, then the Issuer shall transfer from Net Revenues in the Reserve Fund, and deposit to the credit of the Reserve Fund, monthly on or before the l Oth day of each month, a sum equal to 1/60th of the Required Reserve Amount, until the Reserve Fund is restored to the Required Reserve Amount. The Issuer specifically covenants that when and so long as the Reserve Fund contains the Required Reserve Amount, the Issuer shall cause all interest and income derived from the deposit or investment of the Reserve Fund to be deposited to the credit of the Reserve Fund. Section 21. CONTINGENCY FLTND REQUIREMENTS. The Issuer has on deposit in the Construction Fund $500,000 (the "Required Contingency Amount"). No deposits shall be required to be made into the Contingency Fund as long as the Contingency Fund contains said aggregate amount, but if and whenever said Contingency Fund is reduced below said aggregate amount, the aforesaid monthly deposits equal to 1/60th ofthe Required Contingent Amount shall be resumed and continued until such time as the Contingency Fund has been restored to said aggregate amount. Section 22. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a) That ifon any occasion there shall not be sufficient Net Revenues to make the required deposits into the Interest and Sinking Fund or the Reserve Fund, such deficiency shall be made up as soon as possible from the next available Net Revenues. (b) That, subject to making the required deposits to the credit of the various Funds when and as required by this Ordinance or any ordinance authorizing the issuance of Revenue Bonds, any Surplus Revenues may be used by the Issuer for any lawful purpose, in particular such Surplus Revenues shall be deposited into the Interest and Sinking Fund established by the ordinance authorizing the Bonds in accordance with Section 10 of said ordinance. Section 23. PAYMENT OF BONDS AND REVENUE BONDS. On or before June 10, 1998, and semiannually on or before each December 10 and June 10 thereafter while the Bonds, the Outstanding Bonds, and any Revenue Bonds are outstanding and unpaid the Issuer shall make available to the Paying Agent/Registrar therefor, out of the Interest and Sinking Fund, or if necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and interest on the Bonds, the Outstanding Bonds, and any Revenue Bonds as the same matures and comes due, or to redeem the Bonds, the Outstanding Bonds, and Revenue Bonds prior to maturity, either upon mandato.ry redemption or at the option of the Issuer. At the direction of the Issuer the Paying Agent/Registrar shall either deliver paid Bonds, the Outstanding Bonds, and any Revenue Bonds to the Issuer or destroy all paid Bonds, and any Revenue Bonds, and fumish the Issuer with an appropriate certificate of cancellation or destruction. Section 24. REVENUE BONDS. (a) That the Issuer shall have the right and power at any time and from time to time, and in one or more Series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called "Revenue Bonds"), in accordance with law, in any amounts, for any lawful purpose, including the refunding of any Bonds, the Outstanding Bonds, 26