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<br />9 <br />Section 3.06. Establishment and Maintenance of Accounts for Gross Revenues: <br />Use and Withdrawal of Gross Revenues. <br /> <br />All Gross Revenues in the Revenue Fund shall be set aside by the Finance Officer or <br />deposited by the Finance Officer with the Trustee, or the trustee or fiscal agent with respect to <br />Parity Obligations, as the case may be, and shall be applied as follows and in the following <br />order of priority: <br /> <br />(1) Maintenance and Operation Costs. In order to carry out and effectuate <br />the pledge and lien contained herein, the City agrees and covenants to pay all <br />Maintenance and Operation Costs of the Enterprise (including amounts reasonably <br />required to be set aside in contingency reserves for Maintenance and Operation Costs of <br />the Enterprise, the payment of which is not then immediately required) from the Revenue <br />Fund as they become due and payable. Pursuant to Section 5.07 hereof, the City shall <br />annually prepare a budget for Maintenance and Operation Costs. <br /> <br />(2) Debt Service Accounts. The Installment Payments, and payment of all <br />other Parity Obligations, shall be paid in accordance with the terms hereof and the <br />Indenture, and of such Parity Obligations, without preference or priority, and in the event <br />of any insufficiency of such moneys, ratably without any discrimination or preference. <br /> <br />(3) Reserve Funds. Payments required hereunder, or with respect to Parity <br />Obligations, to replenish reserve accounts established therefore, shall be made in <br />accordance with the terms hereof and of such Parity Obligations, without preference or <br />priority, and in the event of any insufficiency of such moneys, ratably without any <br />discrimination or preference. <br /> <br />(4) General Expenditures/Rate Stabilization Fund. All Net Revenues <br />remaining after paying all of the sums required to be paid hereunder by the Finance <br />Officer by the provisions of Sections 3.06 (1), (2) and (3) hereof, or in connection with <br />any Parity Obligation may be withdrawn by the Finance Officer for expenditure for any <br />lawful purpose of the City. From time to time the City may deposit in the Rate <br />Stabilization Fund, from remaining Net Revenues described in this subsection (4) or <br />other available funds of the City, such amounts as the City shall determine. The City <br />may withdraw amounts from the Rate Stabilization Fund (i) for transfer to the Revenue <br />Fund for inclusion in Gross Revenues for any Fiscal Year, or (ii) for any other lawful use <br />of the City. All interest or other earnings upon deposits in the Rate Stabilization Fund <br />shall be withdrawn therefrom and accounted for as Gross Revenues. <br /> <br />Section 3.07. Certain Necessary Transfers. <br /> <br />The parties hereto acknowledge that although all Parity Obligations are secured equally <br />and ratably by Net Revenues, debt service and other funds with respect to obligations other <br />than the Series 2017 Bonds may be held by the Trustee or by trustees other than the Trustee <br />under documents and agreements other than the Indenture and the Installment Purchase <br />Contract, and the Installment Purchase Contract and the Indenture impose no obligations upon <br />the Trustee with respect to such other obligations. The Finance Officer is hereby authorized to <br />make such transfers from the Revenue Fund necessary to effectuate such Parity Obligations’ <br />parity claim on the Net Revenues contemplated hereby. <br /> <br /> <br />8.C. - Page 171