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<br />10 <br />ARTICLE IV <br /> <br />DEPOSITS; ADDITIONAL CONTRACTS AND BONDS <br /> <br />Section 4.01. Deposits to Payment Fund. <br /> <br />On the Installment Payment Date next preceding each Interest Payment Date, the City <br />shall deposit with the Trustee, for deposit in the Payment Fund, from amounts legally available <br />therefor on deposit in the Revenue Fund, a sum equal to the amount of interest becoming due <br />hereunder on the next Interest Payment Date plus the amount of principal becoming due <br />hereunder on such Interest Payment Date. <br /> <br />The City shall be entitled to receive as a credit against Installment Payments an amount <br />equal to the amount of any balance contained in the Payment Fund prior to the Installment <br />Payment Date for such Installment Payments (excluding money designated for the prepayment <br />of Bonds). <br /> <br />All money in the Payment Fund shall be used and withdrawn by the Trustee in <br />accordance with the Indenture. <br /> <br />Section 4.02. No Reserve Fund. <br /> <br />The City is not causing a debt service reserve fund to be established for the Installment <br />Payments or the Series 2017 Bonds. <br /> <br />Section 4.03. Parity Obligations. <br /> <br />(a) So long as any Bonds are Outstanding, the City shall not issue or incur any <br />obligations payable from Net Revenues senior or superior to the Installment Payments. The City <br />may at any time issue Parity Obligations payable from Net Revenues on a parity with the <br />Installment Payments to provide financing for the Enterprise in such principal amount as shall <br />be determined by the City. The City may issue or incur any such Parity Obligations subject to <br />the following specific conditions which are hereby made conditions precedent to the issuance <br />and delivery of such Parity Obligations: <br /> <br />(1) No Event of Default shall have occurred and be continuing; and <br /> <br />(2) The Net Revenues, calculated in accordance with Generally Accepted <br />Accounting Principles, either (i) as shown by the books of the City for the latest Fiscal <br />Year, as verified by a certificate of a Finance Officer, or (ii) as shown by the books of the <br />City for any more recent twelve (12) month period selected by the City, as verified by a <br />certificate or opinion of an Independent Certified Public Accountant employed by the <br />City, plus in either case (at the option of the City) the Additional Revenues, shall be at <br />least equal to one hundred twenty percent (120%) of the amount of Maximum Annual <br />Debt Service. <br /> <br />The provisions of subsection (2) of this Section shall not apply to any Parity Obligations <br />if (i) all of the proceeds of which (other than proceeds applied to pay costs of issuing such Parity <br />Obligations) shall be deposited in an irrevocable escrow held in cash or invested in Federal <br />Securities for the purpose of paying the principal of and interest and premium (if any) on any <br />Outstanding Bonds or on any outstanding Parity Obligations, (ii) at the time of the incurring of <br />8.C. - Page 172