1999-09-08 Special Called Regular Meeting, Public Hearing, and Workshop Meeting

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e e 7.02. Revenue Fund. All Gross Revenues are and shall be credited to the Revenue Fund immediately upon receipt. Payments from the Revenue Fund shall be made with the priorities specified in Section 7.10 hereof. 7.03. Bond Fund. The Bond Fund is created for the sole purpose of paying the principal of, redemption premium, if any, and interest on the Parity Bonds, as the same come due. Payments into the Bond Fund shall be made in substantially equal monthly payments (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 the amounts required to meet the interest and principal payments falling due on or before the next maturity date or mandatory redemption date of the Parity Bonds. The Authority shall, at least five days prior to March 15,2000, and each September 15 and March 15 thereafter, deposit into the Bond Fund any additional Pledged Revenues available in the Revenue Fund which may be necessary to pay in full the interest on and principal, if any, coming due on such September 15 or March 15. In no event shall any amount in excess of the amounts stated above be retained in the Bond Fund, and any such excess amount may be withdrawn by the Authority and replaced in the Revenue Fund. 7.04. Reserve Fund. The Reserve Fund shall be used to pay the principal of and interest on the Parity Bonds when and to the extent the amounts in the Bond Fund available for such payment are insufficient for such purpose, and may be used for the purpose of fmally retiring the last of the Bonds. Funds for the reserve fund will be appropriated from the refunded bonds and deposited in the reserve fund account. Notwithstanding any provision hereof to the contrary, no deposits shall be made into the Reserve Fund at a time when there is a deficiency in the amount on deposit in the Bond Fund nor shall any deposits be made into the Reserve Fund at any time it contains an amount equal to or greater than the Reserve Requirement. If and whenever the balance in the Reserve Fund is reduced below the Reserve Requirement, the Authority shall, from the first available and unallocated Pledged Revenues of the following month or months, cause amounts equal in the aggregate to any such deficiency to be set apart and transferred into the Reserve Fund from the Revenue Fund; provided, however, that in any event the Reserve Requirement shall be restored to the Reserve Requirement within 24 months of such reduction. If at the end of any fiscal year, surplus funds remain in the Reserve Fund resulting from any reduction of the Reserve Requirement or otherwise, they shall be promptly transferred from the Reserve Fund into the Bond Fund and payments into the Bond Fund from the Revenue Fund shall be reduced accordingly. 7.05. Escrow Fund. The amount described in Section 4 shall be deposited in the Escrow Fund, hereby created, pursuant to the Escrow Agreement. 7.06. Deficiencies. If in any month the Authority shall fail to deposit into any Fund provided for by this Resolution the full amounts required, amounts equivalent to such deficiencies shall be set apart and paid into said Funds from the first available and unallocated Revenues of the following month or months, and such payment shall be in addition to the amounts otherwise required to be paid into said Funds during such month or months. To the extent necessary, the Authority shall increase the rates and charges for its services to make up for any such deficiencies. 7.07. Sumlus Monev. Notwithstanding the provisions of Section 5 hereof, Net Revenues in excess of those necessary to establish and maintain the Funds required in this Resolution may be used for any purpose now or hereafter authorized by law. 7.08. Investments. Money in any Fund established by this Resolution may, at the option of the Authority, be placed or invested as permitted by the Texas Public Funds Investment Act, as amended, Chapter 2256, Texas Goverrrrnent Code. 7.09. Funds Secured. Money in all funds created by this Resolution, to the extent not invested, shall be secured in the manner prescribed by law for securing funds of the Authority. 7.10. Priority of Deoosits and Payments from Revenue Fund. The Board shall make the deposits and payments from Pledged Revenues in the Revenue Fund when and as required by any Parity Bonds Resolution or any resolution authorizing subordinate lien bonds, and, after payment of Operating Expenses, such deposits shall be made in the following order and with the following irrevocable priorities, respectively: 15