O-1990-1728 - Laserfiche WebLink

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e e Net Revenues, and the Net Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created by the Parity Bonds Ordinances. The Parity Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, 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 from 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. SECflON &. RATBS. The 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 betterment charges of the System; (2) To establish and maintain the Interest and Sinking Fund; (3) To generate 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 9 and 11 hereot); 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 from the operation of the System into the System Fund. SECflON 9. SYS'mM 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 "Ci.ty 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 operation 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 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 March 15, 1991, and each September 15 and March 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 14