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amount necessary to pay when due the bank fiscal agency charges for paying principal of and <br /> interest on the bonds as the same become payable. The City shall, from the sums deposited in <br /> the Sinking Fund and credited to the Bond and Interest Account, remit promptly to the bank <br /> fiscal agency sufficient moneys to pay the principal and interest on the due dates thereof together <br /> with the amount of bank fiscal agency charges. <br /> (b) Debt Service Reserve Account, The City may, upon the issuance of the <br /> 2012 Bonds of any Series, establish within the Debt Service Reserve Account a subaccount for <br /> the 2012 Bonds of such Series (each, a "2012 Subaccount"). The Debt Service Reserve Account <br /> (excluding any subaccounts established for any of the Bonds (each, a "Subaccount", and <br /> collectively, the "Subaccounts")) shall constitute the margin for safety and as protection against <br /> default in the payment of principal of and interest on the Bonds (as hereinafter defined) <br /> (excluding any Bonds for which a Subaccount was established), and the moneys in the Debt <br /> Service Reserve Account (excluding any Subaccounts) shall be used to pay current principal and <br /> interest on the Bonds (excluding any Bonds for which a Subaccount was established) to the <br /> extent that moneys in the Bond and Interest Account are insufficient for that purpose. The 2012 <br /> Subaccount of the Debt Service Reserve Account for the 2012 Bonds of any Series shall <br /> constitute the margin for safety and as protection against default in the payment of principal of <br /> and interest on the 2012 Bonds of such Series, and the moneys in such 2012 Subaccount shall be <br /> used to pay current principal and interest on the 2012 Bonds of such Series to the extent that <br /> moneys in the Bond and Interest Account are insufficient for that purpose. <br /> (c) No amounts in the 2012 Subaccount of the Debt Service Reserve Account <br /> for the 2012 Bonds of any Series shall be available to pay any principal of or interest or <br /> redemption premium, if any, on any Bonds, except the 2012 Bonds of such Series. <br /> (d) No amounts in the Debt Service Reserve Account shall be available to pay <br /> any principal of or interest or redemption premium, if any, on any 2012 Bonds of any Series for <br /> which a 2012 Subaccount was established, except that any amounts in the 2012 Subaccount of <br /> the Debt Service Reserve Account for the 2012 Bonds of any Series shall be available to pay the <br /> principal of or interest or redemption premium, if any, on the 2012 Bonds of such Series. <br /> (e) In this Ordinance the term "Parity Bonds" means any and all bonds <br /> ranking on a parity with the 2012 Bonds issued hereunder (including the Prior Bonds) which are <br /> (i) now outstanding or issued in the future by the City and (ii) which are payable from the net <br /> revenues of the City's waterworks. <br /> (f) In this Section 14, the term `Bonds" means the 2012 Bonds issued <br /> hereunder and all Parity Bonds. <br /> (g) In this Ordinance, the term "Reserve Requirement" for the Bonds <br /> (excluding any Bonds for which a Subaccount was established) means the least of: (i) the <br /> maximum annual debt service on the Bonds (excluding any Bonds for which a Subaccount was <br /> established), (ii) 125% of the average annual debt service on the Bonds (excluding any Bonds for <br /> which a Subaccount was established), or (iii) 10% of the proceeds of the Bonds (excluding any <br /> Bonds for which a Subaccount was established). In this Ordinance, the term "Reserve <br /> Requirement" for the 2012 Bonds of each Series for which a 2012 Subaccount was established <br /> - 19 - <br />