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8e Page 17 amounts held in any fund or account established under the Indenture (other than the Project Fund and the Rebate Fund). See "SECURITY FOR THE BONDS." The City's obligation to make Installment Payments is on a parity with certain other obligations of the City. See "Outstanding Enterprise Debt" below. Outstanding Enterprise Debt The City's obligation to make Installment Payments under the Installment Purchase Contract is on a parity with (i) its obligation to make installment payments (the "2005 Installment Payments") under an installment purchase contract (the "2005 Installment Purchase Contract") entered into in connection with the issuance of the Authority's $35,790,000 Water Revenue Bonds, Series 2005A (the "2005 Bonds") and (ii) its obligations to make installment payments (the "2006 Installment Payments") under an installment purchase contract (the "the 2006 Installment Purchase Contract") entered into in connection with the issuance of the Authority's $26,000,000 Water Revenue Bonds, Series 2006A (the "2006 Bonds"). Future Parity Debt The Installment Purchase Contract, the 2005 Installment Purchase Contract and the 2006 Installment Purchase Contract permit the City to issue bonds or incur other obligations payable from and secured by a pledge of and lien upon any of the Net Revenues on a parity with the Installment Payments, if the conditions contained in the Installment Purchase Contract are satisfied. See "SECURITY FOR THE BONDS - Additional Debt." Rate Covenants The City is obligated under the Installment Purchase Contract (and the 2005 Installment Purchase Contract and the 2006 Installment Purchase Contract) to fix, prescribe and collect rates, fees and charges in connection with the Enterprise so as to yield Gross Revenues at least sufficient to pay operation and maintenance costs of the Enterprise, all Installment Payments and all payments of principal of and interest on any Parity Debt as they become due and payable, all amounts, if any, required to restore the balance in the Reserve Fund to the full amount of the Reserve Requirement, and all payments reqUired to meet any other obligations of the City which are charges, liens, encumbrances upon, or which are otherwise payable from, the Gross Revenues. In addition, the City is required to fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Enterprise during each Fiscal Year which are sufficient to yield estimated Net Revenues which are at least equal to 120% of the aggregate amount of the Installment Payments, and principal of and interest on any Parity Obligations (being all bonds, notes, loan agreements, installment sale agreements, leases or other obligations of the City, payable from and secured by a pledge of and lien upon any of the Net Revenues incurred on a parity with the payment of the Installment Payments) issued or incurred after the issuance of the Bonds, payable from Net Revenues coming due and payable during such Fiscal Year. See "SECURITY FOR THE BONDS - Rate Covenants; Collection of Rates and Charges." 2