Agmt15 City of RWC Public Financing Authority Water Revenue Refunding Bonds

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--------_;- certificate or opinion of an Independent Certified Public Accountant employed by the City, plus in either case (at the option of the City) the Additional Revenues, shall be at least equal to one hundred twenty percent (120°�) of the amount of Maximum Annual Debt Service; and (3) Except with respect to Govemmental Loans, there shall be deposited in the Reserve Fund, or the�e shall be established from the proceeds of such Parity Obligations a reserve fund separate from the Reserve Fund for the security of such Parity Obligations, in an amount equal to the lesser of(i) the maximum amount of debt service required to be paid by the City with respect to such Pariry Obligations during any Fiscal Year, or (ii) the maximum amount then permitted under the Code, in either event as certified in writing by the City; provided, that in the event the requirement of the Reserve Fund for the Bonds has been terminated as provided in Section 3.06 of the Indenture, no such reserve fund shall be required for Parity Obligations. With respect to Governmental Loans, the City may, in its sole discretion, establish a reserve fund in an amount not to exceed the limits set forth herein. The provisions of subsec�on (2) of this Section shall not apply to any Parity Obligations if(i) all of the proceeds of which (other than proceeds applied to pay costs of issuing such Pariry Obligations and to make the reserve fund deposit required pursuant to subsection (3) of this Section) shall be deposited in an irrevocable escrow held in cash or invested in Federal Securities for the purpose of paying the principal of and interest and premium (if any) on any Outstanding Bonds or on any outstanding Parity Obligations, (ii) at the time of the incurring of such Parity Obligations, the City certifies in writing that maximum annual debt service on the refunding Parity Obligations will not exceed Maximum Annual Debt Service on the Outstanding Bonds, and (iii) the final maturity of the refunding Parity Obligations is not later than the final maturity of the refunded Bonds. The City may at any time execute contracts or issue bonds or other indebtedness payable from Net Revenues or the Revenue Fund payable on a subordinated basis to the payment of the Installment Payments. (b) In order to maintain the pariry relationship of the Installment Payments to all Parity Obligations permitted hereunder, the City covenants that all payments in the nature of principal and interest or reserve account replenishment with respect to any Parity Obligations, except with respect to Governmental Loans, will be structured to occur semi-annually on the Installment Payment Dates and in each year as such payments are due with respect to the Installment Payments, and reserve account replenishment with respect to any Parity Obligations, except with respect to Governmental Loans, will be structured to occur monthly, and to otherwise structure the terms of such Parity Obligations to ensure that they are in all respects payable on a parity with the Installment Payments and not p�ior thereto; provided that the City shall not make a payment on such Governmental Loan to the extent it would have the effect of causing the Ciry to fail to pay Installment Payments on a timely basis. In such event, the Ciry shall make Installment Payments and payments on such Governmental Loan on a pro rata basis. 11 '