Construction of Additions and Improvements to the Sewage Works Bonds

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paid into said Sinking Fund monthly, as available, until there has been accumulated in said Sinking Fund an amount sufficient to meet the requirements of that fund for the then next succeeding twelve (12) calendar months, which amount shall be the maximum amount required to be maintained at any time in said Sinking Fund. In no event shall any part of the Sewage Works Sinking Fund be used in calling bonds for redemption prior to maturity, except to the extent that the amount then in said Sinking Fund exceeds the amount required to pay the principal of the bonds payable therefrom which will mature within a period of twelve (12) calendar months next following the date of such redemption, together with all interest on the bonds payable in said period. Any such excess funds above said required level may also be used in purchasing outstanding bonds at a price less than the then applicable redemption price, if first approved by the Board of Public Works. Monies in said Sinking Fund shall not be used for any other purpose whatsoever except as provided in this Ordinance. Section 13 . In the event all required payments into the Sewage Works Sinking Fund have been met to date and there has been accumulated in said Sewage Works Sinking Fund an amount sufficient to meet the requirements of said Sinking Fund for the then next succeeding twelve (12) calendar months, and (1) funds in an amount sufficient for the operation, repair, and maintenance of the works for the next succeeding twelve (12) calendar months have been accumulated and reserved for that purpose and deposited in a fund hereby designated as the "Sewage Works Operation and Maintenance Reserve Fund" (the "Operation and Maintenance Reserve Fund") , and (2) the requirements of Ordinance No. 3959 as to the Sewage Works Depreciation Fund have been met, then any excess revenues of the sewage works available may be placed in the fund designated as the "Sewage Works Improvement Fund", created by said ordinance, and be used to pay the cost of additions and extensions to the sewage works. No revenues of the sewage works shall be deposited in or credited to the Sewage Works Depreciation Fund or Sewage Works Improvement Fund which will interfere with the requirements of the Sewage Works Sinking Fund or with the requirements as to reserving funds for the operation, maintenance and repair of the sewage works. Section 14 . When the 1971 Bonds shall have matured and all principal and interest payments on said bonds have been made, or funds in an amount sufficient to pay when due at maturity the principal of all of the 1971 Bonds then outstanding, together with the interest thereon to the date of maturity thereof (the "Defeasance Amount") have been deposited with a financial institution appointed by the City as escrow trustee for purposes of holding the Defeasance Amount in trust for the holders of the 1971 Bonds and making, when due, all required principal and interest payments on said 1971 Bonds, then the provisions of Section 12 herein shall no longer be appli- cable to the Series 1989 Bonds and the provisions of this section shall be applicable and in full force and effect for the Series 1989 Bonds and any additional bonds issued pursuant to the provisions of this Ordinance. -20-