854 (2) - Laserfiche WebLink

Home Browse Search

I%w (d) If for any reason the City shall fail at any time to make any of the required payments into the Bond Fund, any sums then held as a debt service reserve shall be used to the extent necessary in the payment of the principal of and interest on the bonds, but such reserve shall be reimbursed from the Water and Sewer Fund before any of the monies in the Water and Sewer Fund shall be used for any other purpose except for making the payments hereinabove required to be made into the Operation and Maintenance Fund and into the Bond Fund. The debt service reserve shall be used solely as herein provided. (e) When the monies held in the Bond Fund, including the debt service reserve, shall be and remain sufficient to pay the principal of and interest on all bonds then outstanding, and the Trustee's and Paying Agent's fees, the Treasurer shall not be obligated to make any further payments into the Bond Fund. (f) All monies in the Bond Fund shall be used solely for the purpose of paying the principal of and interest on the bonds, and the Trustee's and Paying Agent's fees, except as herein specifically provided. If a surplus shall exist in the Bond Fund over and above the amount required for making all principal and interest payments during the succeeding 12 months on all outstanding bonds, and the Trustee's and Paying Agent's fees, and over and above the debt service reserve, such surplus may be applied to the payment of the principal of and interest on any bond that may be called for redemption prior to maturity. (g) There shall be withdrawn from the Bond Fund at least 10 days before the due date of any bond or interest coupon issued hereunder and deposited with the Paying Agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together with the Paying Agent's fees. Such deposits shall be at the sole risk of the City and shall not operate as a payment of the bond or coupon until so applied.