O-1985-1469 - Laserfiche WebLink

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e e Fund which may be necessary to pay in full the interest on and principal, if any, coming due on such September 15 or March 15. In no event shall any amount in excess of the amounts stated above be placed in the Interest and Sinking Fund for the payment of the interest on or principal of the Bonds and Additional Bonds, if any, and any amount so placed may be withdrawn by the City and replaced in the System Fund. Section 14: That contemporaneously with the sale and delivery of the Bonds to the initial purchaser thereof, the City shall withdraw from its other legally available funds the sum of $442,500 and deposit the same in a separate reserve fund (the "Reserve Fund") for the payment of the Bonds and, subject to Section 16 hereof, the Additional Bonds, if any, and on or before the~5th day of each month beginning November 15, 1985 and ending October 15, 1987, the City shall, from the Net Revenues in the System Fund, deposit in the Reserve Fund an amount (the "Monthly Reserve Deposit") not less than one twenty-fourth (1/24) of the difference between the maximum annual requirement for the payment of the principal of and interest on the Bonds and the sum of $442,500. Notwithstanding any provision hereof to the contrary, no deposits shall be made into the Reserve Fund at a time when there is a deficiency in the amount on deposit in the Interest and Sinking Fund nor shall any deposits be made into the Reserve Fund at any time it contains an amount equal to or greater than the maximum annual requirement for the payment of the principal of and interest on the Bonds (and, subject to Section 16 hereof, the Additional Bonds, if any) thereafter maturing. If and whenever the balance in the Reserve Fund is reduced below such requirement, or if the City should fail timely to make any Monthly Reserve Deposit in full, then and in either such event, the City shall, from the first available and unal- located Net Revenues of the following month or months, cause amounts equal in the aggregate to any such deficiency to be set apart and transferred into the Reserve Fund and such transfers shall be in addition to the amounts otherwise required to be deposited into such Fund during such month or months. The Reserve Fund shall be used to pay the principal of and interest on the Bonds (and, subject to Section 16 hereqf, the Additional Bonds, if any) at any time when there is not sufficient money available in the Interest and Sinking Fund for such purpose. Surplus funds in the Reserve Fund resulting from any reduction of the maximum annual requirement for the payment of principal of and interest on the Bonds or otherwise shall be promptly transferred from the Reserve Fund into the Interest and Sinking Fund, and payments into the Interest and Sinking Fund pursuant to Section 12 hereof shall be reduced accordingly. Any funds remaining in the System Fund, after provision for the necessary and reasonable cost of operating and maintaining the System, and after paying the aforesaid amounts required to be paid into the Interest and Sinking Fund and the Reserve Fund, may be used by the City for any lawful purpose. Section 15: That moneys in the System Fund, Interest and Sinking Fund and Reserve Fund may, upon authorization by the City Council, be invested but only in (a) direct general obligations of, or obligations the payment of the principal of and interest on which are unconditionally guaranteed by, The United States of America or (b) certificates of deposit or time deposits with any bank or savings institution which is insured by the Federal Deposit Insurance Corporation or the Federal Savings and 002RDRAW/193BOl -11-