O-1988-1595 - Laserfiche WebLink

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e e United States Treasury is not a prohibited payment. The investment of bond proceeds in certificates of deposit may, as provided in Temp. Treas. Reg. Section 1.103-15AT(d) (6) (ii), be a prohibited payment. The Authority covenants and agrees to rnaintain such records as may be necessary to establish the absence of any prohibited payrnent. (f) Amendment. The provisions of this Section 7.05 may be amended by the Authority upon the receipt of an opinion of pond counsel selected by the Authority that such amendment will not adversely affect any exclusion from gross income of interest on the Bonds. 7.06. Contingency Fund. The Authority agrees to cause to be deposited to the Contingency Fund, commencing upon the sale of water to the Participants under the Water Sales Contracts, from available Net Revenues, rnonthly amounts equivalent to at least $2,083.33 until there has been accumulated in said Fund a total surn (the "Minimum Contingency Fund Balance") equal to $100,000. After the Minirnum Contingency Fund Balance has been accurnulated, and during such time as there is on deposit in the Contingency Fund the Minirnum Contingency Fund Balance, the aforesaid monthly deposits to the Contingency Fund frorn the available Net Revenues may be suspended. Any amounts deposited into the Contingency Fund in excess of the Minimum Contingency Fund Balance shall be at the sole discretion and determination of the Authority. Deposits to the Contingency Fund frorn available Net Revenues shall be subject to and contingent on the availability of moneys after the payment of all amounts required to be deposited to the Bond Fund, the Reserv~ Fund and the Rebate Fund. All moneys deposited and credited to the Contingency Fund may be used for anyone or rnore of the following purposes: (a) Transfers to the Revenue Fund for payment of Operating and Maintenance Expenses~ (b) Transfers to the Revenue Fund for payment of costs and expenses of replacing, reconstructing or .repa1r1ng damaged or destroyed properties of the Transmission System or the Distribution System, when such damage or destruction was a result of a cata- strophic event, inclUding, without limitation, acts of God, acts of public enemies, civil disturbances, explosions, fires, floods, landslides, lightning, 022DESAO/024C04 -23-