O-1991-1755 - Laserfiche WebLink

Browse Search

. . The term "net earnings" as used in this Section shall mean all of the Net Revenues of the System, exclusive of income received specifically for capital items, and operation and maintenance expenses shall exclude expenditures which under standard accounting practice should be charged to capital expenditures or depreciations. (c) Such Additional Bonds are made to mature on March 15th in each of the years in which they are scheduled to mature. (d) The City shall es tablish a reserve fund for such Additional Bonds by providing a cash reserve fund therefor, a surety bond In lieu thereof, or a combination of such cash reserve fund and surety bond, all as the City Council deems reasonable and appropriate provided that (I) the amount of any such cash reserve fund or the coverage of any surety bond in lieu thereof or the amount of such cash reserve fund and the coverage of such surety bond when added together shall at least equal the maximum annual debt service requirements of such Additional Bonds, not to exceed the maximum permitted by applicable regulations, procedures, or published rulings of the Internal Revenue Service (the "Reserve Minimum"); (Ii) if any cash reserve fund is funded by making transfers of Net Revenues in the System Fund, such transfers shall be made each month in an amount reasonably sufficient to reach the Reserve Minimum (or the' portion thereof which is to be provided by such cash reserve fund) within a period of not more than five years after such Additional Bonds are sold and delivered; (Hi) any such cash reserve fund may be combined with ,the Reserve Fund herein provided for the Bonds and witl~ the cash reserve fund provided for any Additional Bo~ds then outstanding'in order ratably to secure all Parity Bonds then outstanding and the Additional Donds then being issued; (iv) any such surety bond provided in lieu of a cash reserve fund shall be issued by an h~surance company or association of companies whose insured obligations are rated by Moody's Investors Service and by Standard 8& Poor's Corporation in their highest rating categories; and (v) any such surety bond may be written (or amended) to provide coverage not only for such Addition"l Bonds but also pro rata for the Parity Bonds then outstanding, provided, any existing cash reserve Cund or surety fund in lieu thereof which secures any such outstanding Parity Bonds is extended ratably to secure the Additional Bonds then being issued. It is the City's intention hereby to provide maximum flexibility with respect to the reserve fund to be, provided for any Additional Bonds which may be issued hereafter and the foregoing provisions shall be liberally construed In order to achieve that objective without materially prejudicing the rights and interests of the owners of any Parity Bonds at the time outstanding. SECTION 18.' GENERAL COVENANTS. The City further covenants, warrants, and agrees that in accordance with and to the extent required or permitted by law while the Parity Bonds are outstunding and unpaid: (a) Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in each Parity Bonds Ordinance, and in each and every Parity Bond; it will 17