92-013 ORD CERTIFICATE FOR ORDINANCE AUTHORIZING ISSUANCE OF COP WATERWORKS AND SEWER SYSTEM REVENUE BONDS SERIES 1992

Home Browse Search

Section 20. RESERVE FUND REQUIREMENTS. That the Issuer has on deposit in the Revenue Bonds Reserve Fund $ , which amount is equal to the average annual principal and interest requirement on the Bonds. The Issuer shall maintain an amount of money and investments equal to the average annual principal and interest requirements of the Bonds and other Revenue Bonds, if any, (the "Required Reserve Amount"). Following the issuance of Revenue Bonds, the Required Reserve Amount shall be equal to the average annual principal and interest requirements of the Bonds, and any Revenue Bonds then outstanding. After the delivery of any Revenue Bonds the Issuer shall cause the Reserve Fund to be increased, if and to the extent necessary, so that such fund will contain an amount of money and investments equal to the Required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Net Revenues or from proceeds from the sale of any Revenue Bonds, or any other available source or combination of sources. All or any part of the Required Reserve Amount not funded initially and immediately after the delivery of any installment or issue of Revenue Bonds shall be funded, within not more than five years from the date of such delivery, by deposits of Net Revenues in approximately equal monthly installments on or before the lOth day of each month. Principal amounts of the Bonds, and any Revenue Bonds which must be redeemed pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal for the purpose of calculating principal and interest requirements on such bonds. When and so long as the amount in the Revenue Bonds Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Revenue Bonds Reserve Fund; but when and if the Revenue Bonds Reserve Fund at any time contains less than the Required Reserve Amount, then the Issuer shall transfer from Net Revenues in the Revenue Bonds Reserve Fund, and deposit to the credit of the Revenue Bonds Reserve Fund, monthly on or before the lOth day of each month, a sum equal to 1/60th of the Required Reserve Amount, until the Revenue Bonds Reserve Fund is restored to the Required Reserve Amount. The Issuer specifically covenants that when and so long as the Revenue Bonds Reserve Fund contains the Required Reserve Amount, the Issuer shall cause all interest and income derived from the deposit or investment of the Revenue Bonds Reserve Fund to be deposited to the credit of the Revenue Bonds Reserve Fund. Section 21. CONTINGENCY FUND REQUIREMENTS. That the Issuer shall cause to be deposited into the Revenue Bonds Contingency Fund 1/60th of the required contingency amount (as hereinafter defined) on the lOth day of each month hereafter until an aggregate amount of $500,000 has been accumulated in this Fund constituting (the "Required Contingency Amount"). No deposits shall be required to be made into the Revenue Bonds Contingency Fund as long as the Revenue Bonds Contingency Fund contains said aggregate amount, but if and whenever said Revenue Bonds Contingency Fund is reduced below said aggregate amount, the aforesaid monthly deposits into the Revenue Bonds Contingency Fund shall be resumed and continued until such time as the Revenue Bonds Contingency Fund has been restored to said aggregate amount. Section 22. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a) That if on any occasion there shall not be sufficient Net Revenues to make the required deposits into the 25