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e e deed of trust on any ree'll, personal, or mixed properties constituting the System. The Registered Owner of the Parity Bonds shall never have the right to demand payment of such obligations out of any funds raised or to be raised by taxation, or fTom any source whatsoever other than the Net Revenues, This Ordinance shall not be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City from doing so. SECTION 8. RATES. TIle City covenants and agrees with the holders of the Parity Bonds that it will: (a) fIX and maintain rates and collect charges for the facilities and services afforded by the System which will provide revenues sufficient at all times: (1) To pay all operation, maintenance, depreciation, replacement, and bettennent charges of the System; (2) To establish and maintain the Interest and Sinking Fund; (3) To genemte in each year, Net Revenues equal to one and twenty-five hundredths (1.25) times the maximum annual requirement for the payment of the principal of and interest on the Parity Bonds at the time outstanding (although amounts shall be paid into the Interest and Sinking Fund and the Reserve Fund only in accordance with Sections 10 and 12 hereof); and (4) To pay all indebtedness outstanding against the System, other than the Parity Bonds, as and when the same become due; and ' (b) deposit as collected all revenues derived fTom the opemtion of the System into the System Fund. SECTION 9. SYSTEM FUND, There has been created and established on the books of the City, and accounted for separate and apart from all other funds of the City, a special fund entitled the "City of La Porte, Texas, Waterworks and Sewer System Fund" (the "System Fund"). All gross revenues are and shall be credited to the System Fund immediately upon receipt. The necessary and reasonable expenses of opemtion and maintenance of the System shall first be paid from the System Fund upon approval of the City Council and, from 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 thereof) 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 March 15 or September 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 Parity Bonds, and any amount so placed may be wilhdrawn 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 10. 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 11, 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 10 the extent the amounts in the Interest and Sinking Fund available for such 11