AgdaPkt 2015-04-13 Closed and Joint SA and PFA REVISED 04_10_2015

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8.A. - Page 36 Revenue Fund, a sum equal to the amount of interest and principal becoming due under the 2015 Installment Purchase Contract on the next Interest Payment Date. The City shall be entitled to receive as a credit against Installment Payments an amount equal to the amount of any balance contained in the Payment Fund prior to the Installment Payment Date for such Installment Payments (excluding money designated for the prepayment of Bonds). All money in the Payment Fund will be used and withdrawn by the Trustee in accordance with the Indenture. Covenant to Maintain and Budget During the Term of the 2015 Installment Purchase Contract, the City will maintain and preserve the Enterprise in good repair and working order at all times and will operate the Enterprise in an efficient and economical manner and will pay all Maintenance and Operation Costs of the Enterprise as they become due and payable. Promptly upon the adoption of its budget for each Fiscal Year, the City will file with the Trustee a budget setting forth the estimated Maintenance and Operation Costs of the Enterprise for such Fiscal Year. Reserve Fund General. Under the Indenture, a Reserve Fund is established for the Bonds (the "Reserve Fund"), and will be held in trust by the Trustee. The Reserve Fund shall initially be funded, and will continue to be funded (unless terminated, as hereinafter described), in an amount equal to the Reserve Requirement. The Indenture defines the term "Reserve Requirement" to mean, as of any date of calculation, the lesser of (i) 10% of the original principal amount of the Bonds, (ii) an amount equal to maximum annual Debt Service payable by the Authority between the date of such calculation and the final maturity of the Bonds, or (iii) 125% of average annual Debt Service payable under the Indenture. In the event the 2007 Bonds are no longer outstanding under the terms of the 2007 Indenture, or the 2007 Indenture and the 2007 Installment Purchase Contract are amended to delete the requirement of a reserve fund for the 2007 Bonds, the Reserve Fund may be terminated in the sole discretion of the Authority, such determination evidenced in Certificate of the Authority filed with the City and the Trustee. In such event, amounts on deposit in the Reserve Fund may be transferred to the Redemption Account to redeem Bonds, or may be used for any other lawful purpose which, in the opinion of Bond Counsel delivered to the Authority and the Trustee, would not cause interest on the Bonds to become includable in gross income for federal income tax purposes, all as set forth in a Certificate of the Authority. Application of Reserve Fund. If, two Business Days prior to any Interest Payment Date, the money in the Payment Fund does not equal the amount required to be paid to the Bond Owners on such Interest Payment Date, the Trustee shall transfer from the Reserve Fund to the Payment Fund the amount of such insufficiency to make delinquent Installment Payments on behalf of the City. If the Reserve Fund is funded with a letter of credit, surety bond, insurance policy or other comparable credit facility as described below, the Trustee shall take such action as is necessary to either (i) make a drawing under the letter of credit or (ii) make a claim under the surety bond or insurance policy, respectively, so that the amount of such insufficiency is paid or available to the Trustee on such Interest Payment Date under the terms of such instrument. Upon receipt of any delinquent Installment Payment or portion thereof with respect to which -12-