O-1988-1595 - Laserfiche WebLink

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e - virtue of this Resolution, to be applied to the payment of debt service on the Bonds. Amounts in the Bond Fund shall be used to pay the principal of, premium, if any, and interest on, the Bonds and any Additional Bonds, as such principal rnatures and such interest becornes due. In no event shall any arnount in excess of the amounts stated above be placed in the Bond Fund for the payment of the principal of, premium, if any, or interest on the Bonds and Additional Bonds, if any, and any amount so placed may be withdrawn by the Authority and replaced in the Revenue Fund. 7.04. Reserve Fund. On or before the 25th day of each month beginning September 25, 1988, there shall be deposited into the Reserve Fund, an amount not less than one sixtieth (1/60) of the average annual principal and interest requirements on the Bonds, to the end that there shall be accumulated in the Reserve Fund within sixty-one (61) months from September 25, 1988 an amount not less than the average annual principal and interest requirernents for the Bonds~ provided, however, that (a) on each debt service payment date (other than the penultimate debt service payrnent date) when the Reserve Fund Amount decreases, the amount in the Reserve Fund on such date (after the application of any arnount needed that day to pay principal or interest then due) accumulated pursuant to'this Resolution in excess of the decreased Reserve Fund Amount shall be withdrawn from the Reserve Fund, deposited into the Bond Fund and applied to the payment of debt service on the Bonds on the next debt service payment date or dates until so applied~ and (b) on the penultimate debt service date all of the amount in the Reserve Fund accumulated pursuant to this Resolution (after the application of any amount needed that day to pay inter- est then due) shall be withdrawn frorn the Reserve Fund, deposited into the Bond Fund and applied to the payment of debt service on the Bonds on the last debt service payment date. At no time shall the Authorit,y be required to deposit in the Reserve Fund proceeds (as such term is defined in the Code) of the Bonds or any Additional Bonds if and to the extent such deposit would adversely affect the exclusion from gross income for federal income tax purposes of the interest on the Bonds. No deposits shall be required to be made into the Reserve Fund by virtue of this Resolution as long as the Reserve Fund shall contain the aggregate of the amounts required to be deposited therein by reason of this Resolution and the resolutions authorizing any Additional Bonds, but if and whenever the Reserve Fund is reduced below said aggregate amount, the aforesaid monthly deposits into 022DESAO/024C04 -20-