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<br /> <br /> <br /> <br /> <br /> <br /> Section 18. RESERVE FUND REQUIREMENTS. That there is <br /> on deposit in the Reserve Fund $336,500, which is at least <br /> equal to the average annual principal and interest require- <br /> ments of the outstanding Refunding Bonds. After the deliv- <br /> ery of any Additional Bonds the Issuer shall cause the <br /> Reserve Fund to be increased, if and to the extent neces- <br /> sary, so that such fund will contain an amount of money and <br /> investments equal in market value to the average principal <br /> and interest requirements, of all Bonds and Additional Bonds <br /> which will be outstanding after such delivery. An amount of <br /> money and investments equal in market value to the average <br /> annual principal and interest requirements of all Bonds and <br /> Additional Bonds at any time outstanding is hereby desig- <br /> nated as the "Required Reserve Amount". Any increase in the <br /> Required Reserve Amount may be funded from Pledged Revenues, <br /> or from proceeds from the sale of any Additional Bonds, or <br /> any other available source or combination of sources. All <br /> or any part of the Required Reserve Amount not funded <br /> initially and immediately after the delivery of any install- <br /> ment or issue of Additional Bonds shall be funded, within <br /> not more than five years from the date of such delivery, by <br /> deposits of Pledged Revenues in approximately equal semi- <br /> annual installments on or before the lOth day of each June <br /> and each December. Principal amounts of the Bonds and any <br /> Additional Bonds which must be redeemed pursuant to any <br /> applicable mandatory redemption requirements shall be deemed <br /> to be maturing amounts of principal for the purpose of <br /> calculating principal and interest requirements on such <br /> bonds. When and so long as the amount in the Reserve Fund <br /> is not less than the Required Reserve Amount no deposits <br /> shall be made to the credit of the Reserve Fund; but when <br /> and if the Reserve Fund at any time contains less than the <br /> Required Reserve Amount, then the Issuer shall transfer from <br /> Pledged Revenues in the System Fund, and deposit to the <br /> credit of the Reserve Fund, semiannually on or before the <br /> lOth day of each June and of each December, a swa equal to <br /> 1/10th of the Required Reserve Amount, until the Reserve <br /> Fund is restored to the Required Reserve Amount. The Issuer <br /> specifically covenants that when and so long as the Reserve <br /> Fund contains the Required Reserve amount, the Issuer shall <br /> cause all interest and income derived from the deposit or <br /> investment of the Reserve Fund to be deposited to the credit <br /> of the Bonds and Additional Bonds Account in the Interest <br /> and Sinking Fund. <br /> Section 19. IMPROVEMENT AND CONTINGENCY FUND REQUIRE- <br /> MENTS. That subject to the priorities and deposits provided <br /> for and required under Section 15 of this Ordinance, the <br /> Issuer will, at the end of each fiscal year, cause all <br /> remaining surplus Pledged Revenues from the System Fund to <br /> be transferred and deposited to the credit of the Improve- <br /> ment and Contingency Fund, to be used as provided or permit- <br /> ted in Section 13 of this Ordinance. <br /> 30 <br />