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6 <br />Installment Purchase Contract”) entered into in connection with the issuance of the Authority’s <br />Water Refunding Revenue Bonds, Series 2017 (the “2017 Bonds”). <br />Future Parity Obligations <br />The 2024 Installment Purchase Contract, the 2017 Installment Purchase Contract and the <br />2015 Installment Purchase Contract permit the City to issue bonds or incur other obligations <br />payable from and secured by a pledge of and lien upon any of the Net Revenues on a parity with <br />the 2024 Installment Payments, the 2017 Installment Payments and the 2015 Installment <br />Payments if certain conditions are satisfied. See “SECURITY FOR THE BONDS – Additional <br />Debt.” <br />The 2017 Installment Purchase Contract, the 2015 Installment Purchase Contract and all <br />bonds, notes, loan agreements, installment sale agreements, leases or other obligations of the <br />City payable from and secured by a pledge of Net Revenues on a parity with the payment of the <br />2024 Installment Payments are defined in the Indenture as “Parity Obligations.” <br />No Reserve Fund <br />A reserve fund will not be funded for the Bonds. <br />Rate Covenant <br />The City is obligated under the 2024 Installment Purchase Contract (and the 2017 <br />Installment Purchase Contract and the 2015 Installment Purchase Contract) to fix, prescribe and <br />collect rates, fees and charges in connection with the Enterprise so as to yield Gross Revenues <br />at least sufficient to pay operation and maintenance costs of the Enterprise, the 2024 Installment <br />Payments and all payments of principal of and interest with respect to any Parity Obligations as <br />they become due and payable, all amounts, if any, required to replenish reserve funds established <br />for Parity Obligations, and all payments required to meet any other obligations of the City which <br />are charges, liens, encumbrances upon, or which are otherwise payable from, the Gross <br />Revenues. <br />In addition, the City is required to fix, prescribe, revise and collect rates, fees and charges <br />for the services and facilities furnished by the Enterprise during each Fiscal Year which are <br />sufficient to yield estimated Net Revenues that are at least equal to 120% of the aggregate amount <br />of the 2024 Installment Payments, and principal of and interest on any Parity Obligations coming <br />due and payable during such Fiscal Year. <br />See “SECURITY FOR THE BONDS – Rate Covenants; Collection of Rates and Charges.” <br />No Redemption <br />The Bonds are not subject to redemption prior to maturity. See “THE BONDS – No <br />Redemption.” <br />8.A. - Page 20 of 255 <br />648