O-1988-1595 - Laserfiche WebLink

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e e deposited into the Construction Fund. Of the total deposit, $257,000 shall be deposited into a separate "Construction Contingency Account," and such amount shall be used solely for the payment of (a) the purchase price of an undivided interest in the Southeast Plant to the extent funds in the General Account of the Construction Fund for such purpose are insufficient~ or (b) interest on the Bonds if the Authority has insufficient Net Revenues available for such purposes. The remainder of the amount deposited in the Construction Fund shall be deposited into the "General Construction Account" and shall be used for the payment of (x) the expenses incidental to the issuance of the Bonds, including fiscal, legal and engineering fees and expenses, including without 'limitation expenses incidental to the organization and administration of the Authority, (y) the purchase price of an undivided interest in the Southeast Plant in accordance with the provisions of the Houston Contract and (z) to the extent any Bond proceeds rernain after the payment of the amounts specified in (x) or (y), the construction, purchase and acquisition of the Distribu- tion System and the Transrnission System~ all to the extent authorized or permitted under applicable law. 4.02. Surplus Construction Funds. Any moneys remaining in either the Construction Contingency Account or the General Construction Account of the Construction Fund after completion of the entire Distribution Systern and Transmission System and the purchase of an interest in the Southeast Plant as provided in the Houston Contract shall be deposited into the Reserve Fund to the extent the Reserve Fund Amount shall not be on deposit in the Reserve Fund at the time and, to the extent any surplus remains, such surplus shall be deposited into the Bond Fund to be used by the Authority to pay interest on the Bonds; provided, however, that the aggregate amount deposited into the Reserve Fund pursuant to this Section shall not exceed the arnount the Authority determines in good faith (after such consultation with counsel as the Authority deems appropriate) will not exceed 10 percent of the proceeds of the Bonds, within the meaning of Section 148(d) (2) of the Internal Revenue Code of 1986, as amended (the "Code"). Section 5. PLEDGE OF NET REVENUES. The Bonds and any Additional Bonds and the interest on all such bonds are and shall be payable from and secured by an irrevocable first lien on and pledge of the (a) Revenues after deduction of the Operating and Maintenance Expenses~ and (b) all moneys and investments on deposit or credited to the Bond Fund or the Reserve Fund~ and, subject only to Section 12 022DESAO/024C04 -17-