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i ~ • <br />r- .. <br />excess to the nearest multiple of the denomination of the <br />Bonds, and the Purchaser shall return to the Authority a <br />like amount of Bonds in inverse numerical order. To the <br />extent any surplus remains after any such cancellation of <br />the Bonds, such surplus shall be deposited into the Bond <br />Fund. <br />Section 5. PLEDGE OF NET REVENUES. The Bonds and <br />any Additional Bonds and the interest on all such bonds are <br />and shall be payable from and secured by an irrevocable <br />first lien on and pledge of the (a) Revenues after deduction <br />of the Operating and Maintenance Expenses; and (b) all <br />moneys and investments on deposit or credited to the Bond <br />Fund or the Reserve Fund; and, subject only to Section 12 <br />hereof, such Net Revenues and such moneys and investments <br />are hereby pledged irrevocably for such purpose and are <br />further pledged irrevocably to the establishment and main- <br />tenance of the Bond Fund, the Reserve Fund, the Rebate Fund <br />and the Contingency Fund. <br />Section 6. RATE COVENANT. The Authority <br />covenants and agrees with the owners of the Bonds and <br />Additional Bonds, if any, that <br />(a) it shall, subject to any restrictions con- <br />tained in the Water Sales Contracts, at all times fix, <br />maintain, charge and collect rates and charges for services <br />rendered by the Authority which will provide Revenues at <br />least sufficient to pay all Operating and Maintenance <br />Expenses and to produce Net Revenues in an amount each year <br />not less than: <br />(1) the average annual principal of and <br />interest on the Bonds and any Additional Bonds at <br />the time outstanding (although amounts shall be <br />paid into the Bond Fund and Reserve Fund only in <br />accordance with Section 7.03 and Section 7.04 <br />-- - hereof) ; and <br />(2) an amount necessary to make all deposits <br />now or hereafter required to be made into the Bond <br />Fund, the Reserve Fund, the Rebate Fund and the <br />Contingency Fund as provided herein or in the <br />resolutions authorizing any Additional Bonds. <br />(b) if the Authority should become legally liable <br />for any other obligations or indebtedness, the Authority <br />shall, to the extent permitted under the Water Supply <br />Contracts, fix, maintain, charge and collect additional <br />038DESAJ/024C02 -18- <br />