O-1985-1469 - Laserfiche WebLink

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e e Loan Insurance Corporation, provided that such certificates of deposit or time deposits, to the extent that they exceed the amounts covered by such insurance, are fully secured in the manner required by law and provided further that each of the aforesaid obligations, certificates and time deposits shall mature, or be subject to redemption at the option of the owner or holder thereof, within not more than ten years from the date of the making of such investment. Any obligation in which moneys from the Interest and Sinking Fund or Reserve Fund are so invested shall be kept and held in the depository bank of the City in escrow and in trust for the benefit of the owners of the Bonds and (subject to the provisions of Section 16) Additional Bonds, and shall be promptly sold and the proceeds of sale applied to the making of any payments required to be made from the Interest and Sinking Fund or Reserve Fund, as the case may be. All such investments shall at all times be a part of the Fund from which the moneys used to acquire said investments shall have come and all earnings on such investments shall be credited to, and losses thereon charged against, such Fund. Notwithstanding any provision hereof to the contrary, any investment of moneys in the Interest and Sinking Fund shall be made so as to mature or be subject to redemption at the option of the owner or holder thereof on or prior to the date or dates on which moneys therefrom will be required. Section 16: That in addition to inferior lien bonds authorized by Article lIlla, Vernon's Texas Civil Statutes, as amended, the City expressly reserves the right hereafter to issue additional parity bonds and other evi- dences of indebtedness now or hereafter authorized by the Legislature of Texas (collectively, the "Additional Bonds"), and the Additional Bonds, when issued, may be secured by and payable from a first lien on and pledge of the Net Revenues of the System in the same manner and to the same extent as are the Bonds authorized by this Ordinance but subject to the remaining provisions hereof, and the Bonds authorized herein and the Additional Bonds may in all respects be of equal dignity. It is provided, however, that no Additional Bonds shall be issued unless: (a) The Interest and Sinking Fund, the Reserve Fund and any similar fund or funds created by the. ordinance authorizing any Additional Bonds at the time outstanding shall each contain the amount then required to be on deposit therein, and a certificate to such effect shall be executed and delivered by the Mayor and City Secretary. (b) An independent firm of certified public ac- countants, based upon an annual audit of the books of the System, certifies that the net earnings of the System for the fiscal year next preceding the month in which the ordi- nance authorizing such Additional Bonds is adopted were equal to each of the. following determined ~ndependently: (i) at least one and one-half (1-1/2) times the average annual requirements for the payment of the principal of and interest on the Bonds and Addi- tional Bonds, if any, then outstanding and on such Additional Bonds, when issued, sold, and delivered; and (ii) at least one and twenty-five hundredths (1-25/100) times the maximum annual requirement for the payment of the principal of and interest on the Bonds and Additional Bonds, if any, then 002RDRAW/193B01 -12-