Bill No. 49-23 Revenue Bonds Authorizing the Acquisition & Construction of the Municipal Waterworks

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amount so credited shall equal the principal payable during the next succeeding twelve (12) calendar months and the interest payable during the next succeeding six (6) calendar months through January 1, 2033. After that an amount equal to the sum of one-sixth (1/6) of the principal and interest on all then outstanding bonds payable from Net Revenues on the next succeeding principal and interest payment dates, until the amount so credited shall equal the principal and interest payable during the next succeeding six (6) calendar months. There shall similarly be credited to the account any amount necessary to pay when due the bank fiscal agency charges for paying principal of and interest on the bonds as the same become payable. The City shall, from the sums deposited in the Sinking Fund and credited to the Bond and Interest Account, remit promptly to the bank fiscal agency sufficient moneys to pay the principal and interest on the due dates thereof together with the amount of bank fiscal agency charges. In no event shall any part of the Sinking Fund be used in calling Bonds for redemption prior to their respective maturities, except to the extent that the amount then in the Sinking Fund exceeds the amount required to pay the Bonds which will mature within a period of twelve (12) calendar months next following the date of such redemption, together with all interest on Bonds payable in such period. Any such excess of funds above such required level may also be used in purchasing outstanding bonds at a price less than the then-applicable redemption price, with the prior approval of the City. Monies in the Sinking Fund shall not be used for any other purpose whatsoever except as provided in this Ordinance. b) Debt Service Reserve Account. The 2009A Subaccount in the Debt Service Reserve Account established pursuant to the 2009 Ordinance for the 2009A Bonds (the "2009A Subaccount") is hereby continued. In the event the Bonds or any series thereof authorized hereunder (for purposes of this Section XV such Bonds or series thereof are referred to as the 2023 Bonds"and the term"Bonds"means the 2023 Bonds issued hereunder and all Parity Bonds) are sold to the Authority as part of its IFA Program,the 2009A Subaccount shall serve as a reserve subaccount also for the 2023 Bonds and any Parity Bonds hereafter issued by the City (and as such, the 2009A Bonds Subaccount shall hereinafter be known as the "Common Reserve Subaccount"). Upon the issuance of the 2023 Bonds, the City may deposit Bond proceeds, funds on hand, or a combination thereof into the Common Reserve Subaccount to satisfy the Reserve Requirement(as defined herein). The Debt Service Reserve Account(excluding any subaccounts established or continued for any of the Bonds (each, a "Subaccount", and collectively, the Subaccounts")) shall constitute the margin for safety and as protection against default in the payment of principal of and interest on the Bonds (as hereinafter defined) (excluding any Bonds for which a Subaccount was established or continued),and the moneys in the Debt Service Reserve Account (excluding any Subaccounts) shall be used to pay current principal and interest on the Bonds (excluding any Bonds for which a Subaccount was established or continued) to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. The Common Reserve Subaccount shall constitute the margin for safety and as protection against default in the payment of principal of and interest on the 2023 Bonds, the 2009A Bonds, and any Parity Bonds hereafter issued by the City, and the moneys in such Common Reserve Subaccount shall be used to pay current principal and interest on the outstanding 2023 Bonds, the 2009A Bonds, or any Parity Bonds hereafter issued by the City to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. 22 -