O-1994-1972 - Laserfiche WebLink

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e e the Net Revenues available in the System Fund, the City shall then make substantially equal monthly payments into the Interest and Sinking Fund (commencing with respect to the Bonds and any Additional Bonds on the date of delivery to the initial purchaser thereot) during each year in which any of the Parity Bonds are outstanding in an aggregate amount equal to 100% of the amounts required to meet the interest and principal payments falling due on or before the next maturity date of the Parity Bonds. The City shall. at least five days prior to September 15, 1994, and each March 15 and September 15 thereafter. deposit into the Interest and Sinking Fund any additional Net Revenues available in the System Fund which may be necessary to pay in full the interest on and principal, if any, coming due on such M3l'Ch 15 or September 15. In no event shall any amount in excess of the amoums stated above be placed in the Interest and Sinking Fund for the payment of the interest on or principal of the Parity Bonds. and any amount so placed may be withdrawn by the City and replaced in the System Fund. 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 11. INTEREST AND SINKING FUND. For the sole purpose of paying the principal of and interest on the Parity Bonds. as the same come due, there has been created and established on the books of the City a separate fund entitled the "City of La Porte, Texas, Waterworks and Sewer System Bonds Interest and Sinking Fund" (the "Interest and Sinking Fund"). SECTION 12. RESERVE FUND. There has been created and established on the books of the City at the City's depository bank a separate fund entitled the "City of La Porte, Texas, Waterworks and Sewer System Bonds Reserve Fund" (the "Reserve Fund"). The Reserve Fund shall be used to pay the principal of and interest on any Parity Bonds when and to the extent the amounts in the Interest and Sinking Fund available for such payment are insufficient for such purpose, and may be used for the purpose of finally retiring the last of any Parity Bonds. Beginning on May 15, 1994 and ending April 30, 1999, the City shall, from the Net Revenues in the System Fund, deposit into the Reserve Fund an amount of money in equal monthly amounts (the "Monthly Reserve Deposit") to achieve the Reserve Requirement (hereinafter described). Notwithstanding any provision hereof to the conttary, 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 Reserve Requirement If and whenever the balance in the Reserve Fund is reduced below the Reserve 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 unallocated Net Revenues of the following month or months, cause amounts equal in the aggregate to any such deficiency to be set apart and ttansferred 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. Surplus funds in the Reserve Fund resulting from any reduction of the Reserve Requirement or otherwise shall be promptly transferred from the Reserve Fund into the Interest and Sinking Fund, and payments into the Interest and Sinking Fund from the System Fund shall be reduced accordingly. As used herein "Reserve Requirement" shall be the lesser of (1) 10% of the face amount of the Parity Bonds, (2) 100% of the maximum annual debt service for the Parity Bonds, or (3) 125% of average annual debt service for the Parity Bonds. SECTION 13. INVESTMENTS. Money in any Fund established by the Parity Bonds Ordinances may, at the option of the City, be placed or invested in "Pennitted Investments" as defined and used herein to mean, to the extent pennitted by Texas law: (1) direct obligations of (including obligations issued or held in book entry fonn on the books ot) the Deparanent of Treasury of the United States of America; (2) obligations of any of the following federal agencies which obligations represent full faith and credit of the United States of America. including: Export - Import Bank 11