8419-93 Amending Ordinance #8318-92 Issuance of Revenue Bonds Waterworks

Home Browse Search

average annual principal and interest payable on the Bonds, or (iii) ten percent (10%) of the proceeds of the Bonds (plus a "minor portion" thereof defined and permitted pursuant to the Internal Revenue Code of 1986 as amended and as in effect on the date of delivery of the Bonds (the "Code") ) . The Debt Service Reserve Account shall constitute the margin for safety and as protection against default in the payment of principal of and interest on the Bonds and the moneys in the Reserve Account shall be used to pay current principal and interest on the Bonds to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. Any deficiency in the balance maintained in the Debt Service Reserve Account shall be promptly made up from the next available Net Revenues remaining after credits into the Bond and Interest Account. In the event moneys in the Debt Service Reserve Account are transferred to the Bond and Interest Account to pay principal and interest on the Bonds, then such depletion of the balance in the Debt Service Reserve Account shall be made up from the next available Net Revenues after the credits into the Bond and Interest Account hereinabove provided for. Any moneys in the Debt Service Reserve Account in excess of the Reserve Requirement may be used for the prepayment of installments of principal on the then outstanding Bonds which are then callable or prepayable, or for the purchase of outstanding Bonds or installments of principal of the Bonds at a price not exceeding par and accrued interest, or may be transferred to the Waterworks Improvement Fund as provided below. However, in no event shall moneys in excess of the Reserve Requirement be held in the Debt Service Reserve Account. 14