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<br /> <br /> <br /> <br /> <br /> <br /> Section 17. PRIOR LIEN RESERVE FUND REQUIREMENTS. <br /> That the Issuer shall cause to be deposited in the Prior <br /> Lien Reserve Fund commencing December 10, 1988 and on or <br /> before June 10 and December 10 thereafter an amount equal to <br /> 1/lOth of the average annual principal and interest require- <br /> ments of the Prior Lien Bonds until the Prior Lien Reserve <br /> Fund contains an amount equal to the average annual princi- <br /> pal and interest requirements, for such initial Prior Lien <br /> Bonds or Additional Prior Lien Revenue Bonds. After the <br /> delivery of any other Prior Lien Additional Bonds the Issuer <br /> shall cause the Prior Lien Reserve Fund to be increased, if <br /> and to the extent necessary, so that such Fund will contain <br /> an amount of money and investments equal in market value to <br /> the average annual principal and interest requirements of <br /> all Prior Lien Additional Bonds which will be outstanding <br /> after such delivery. An amount of money and investments <br /> equal in market value to the average annual principal and <br /> interest requirements, of all Prior Lien Additional Bonds at <br /> any time outstanding is hereby designated as the "Required <br /> Prior Lien Reserve Amount". All or any part of the Prior <br /> Lien Reserve Fund may be funded from Pledged Revenues, or <br /> from proceeds from the sale of any Prior Lien Additional <br /> Bonds, or any other available source, or any combination of <br /> sources. All or any part of the Prior Lien Reserve Fund not <br /> funded initially and immediately after the delivery of any <br /> series or issue of Prior Lien Additional Bonds shall be <br /> funded, within not more than five years from such date of <br /> such delivery, by deposits of Pledqed Revenues in approxi- <br /> mately equal semiannual installments, made on or before the <br /> lOth day of each June and each December. Principal amounts <br /> of any Prior Lien Additional Bonds which must be redeemed <br /> pursuant to any applic-able mandatory redemption requirements <br /> shall be deemed to be maturing amounts of principal for the <br /> purpose of calculating principal and interest requirements <br /> of the Prior Lien Additional Bonds. When and so long as the <br /> amount in the Prior Lien Reserve Fund is not less than the <br /> Required Prior Lien Reserve Amount no deposits shall be made <br /> to the credit of the Prior Lien Reserve Fund; but when and <br /> if the Prior Lien Reserve Fund at any time contains less <br /> than the Required Prior Lien Reserve Amount, then the Issuer <br /> shall transfer from Pledged Revenues in the System Fund, <br /> semiannually on or before the lOth day of each June and of <br /> each December, a sum equal to 1/10th of the Required Prior <br /> Lien Reserve Amount, until the Prior Lien Reserve Fund is <br /> restored to the Required Prior Lien Reserve Amount. The <br /> Issuer specifically covenants that when and so long as the <br /> Prior Lien Reserve Fund contains the Required Prior Lien <br /> Reserve Amount, the Issuer shall cause all interest and <br /> income derived from the deposit or investment of the Prior <br /> Lien Reserve Fund to be deposited to the credit of the Prior <br /> Lien Additional Bonds Account in the Interest and Sinking <br /> Fund. <br /> 29 <br />