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-13- <br />other amounts. No other funds or property of the City are liable for the payment of the 2017 <br />Installment Payments and any other amounts coming due and payable under the 2017 <br />Installment Purchase Contract. <br /> <br />Absolute and Unconditional Obligations. The obligation of the City to make the 2017 <br />Installment Payments and to pay the interest thereon is absolute and unconditional, and until <br />such time as all 2017 Installment Payments and the interest thereon shall have been fully paid <br />and the Bonds are no longer Outstanding, the City will not, under any circumstances, <br />discontinue, abate or suspend any 2017 Installment Payments or any interest thereon required <br />to be made by it under the 2017 Installment Purchase Contract when due, whether or not the <br />Enterprise or any part thereof is operating or operable or has been completed, or whether or not <br />the Enterprise is condemned, damaged, destroyed or seized or its use is suspended, interfered <br />with, reduced or curtailed or terminated in whole or in part, and such payments shall not be <br />subject to reduction whether by offset, counterclaim, defense, recoupment, abatement, <br />suspension, deferment or otherwise and shall not be conditional upon the performance or <br />nonperformance by any party of any agreement or covenant contained herein for any cause <br />whatsoever. <br /> <br />Rate Covenants; Collection of Rates and Charges <br /> <br />Sum Sufficient. The City will fix, prescribe and collect rates, fees and charges in <br />connection with the Enterprise so as to yield Gross Revenues sufficient, after making reasonable <br />allowances for contingencies and errors in the estimates, to pay the following amounts in the <br />following order of priority: <br /> <br />(a) All Maintenance and Operation Costs of the Enterprise; <br /> <br />(b) The 2017 Installment Payments and interest thereon and all payments <br />(including payments of interest and under reimbursement agreements) with respect to <br />related Parity Obligations (including the 2015 Installment Payments and the 2013 <br />Installment Payments) as they become due and payable; <br /> <br />(c) Amounts necessary to bring the amount of funds in reserve funds established <br />for Parity Obligations, if any, up to the respective reserve requirement within one year <br />of a draw thereon; and <br /> <br />(d) All payments required to meet any other obligations of the City which are <br />charges, liens, encumbrances upon, or which are otherwise payable from the Gross <br />Revenues during such Fiscal Year. <br /> <br />120% Debt Service Coverage. The City is required to fix, prescribe, revise and collect rates, <br />fees and charges for the services and facilities furnished by the Enterprise during each Fiscal <br />Year which are sufficient to yield estimated Net Revenues which are at least equal to one <br />hundred twenty percent (120%) of the aggregate amount of the 2017 Installment Payments, and <br />principal of and interest on any Parity Obligations (including the 2015 Installment Payments <br />and the 2013 Installment Payments) issued or incurred payable from Net Revenues coming due <br />and payable during such Fiscal Year. The City may make adjustments, from time to time, in its <br />rates, fees and charges as it deems necessary, but shall not reduce its rates, fees and charges <br />below those in effect unless the Net Revenues resulting from such reduced rates, fees and <br />charges shall at all times be sufficient to meet the requirements described in this paragraph. <br /> <br />If the City violates the rate covenant described in the two preceding paragraphs, such <br />violation shall not, in and of itself, be a default under the 2017 Installment Purchase Contract <br />and shall not give rise to a declaration of an Event of Default if the coverage calculated in <br />8.C. - Page 38