O-1991-1755 - Laserfiche WebLink

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e e from doing so. SECTION 9. RA TES. 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 a t all times: (l) 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 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 from the operation of the System into. the System Fund. . SECTION 10. SYSTEM FUND. There has been created and established on t,he 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 re~eipt. 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 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, 1991, 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 withdrawn by the City and replaced in the System Fund. Any funds remaining in the 13