9415-03 Approving and Authorizing the Execution of a lease for the construction and equipping of a new Fire Stationand the Renovation

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semiannually, the semiannual payments into the COIT Obligations Fund shall be in an amount equal to at least the total amount payable during the then next succeeding six (6) calendar months of (i) rentals, including without limitation the Rentals, payable from COIT Revenues under any lease, including without limitation, the Lease and (ii) principal of and interest on bonds payable by their terms from COIT Revenues. In the even that the City receives only an annual distribution of COIT Revenues, the annual payment into the COIT Obligations Fund shall be in an amount equal to at least the total amount payable during the then next succeeding twelve (12) months of (i) rentals, including without limitation the Rentals, payable from COIT Revenues under any lease, including without limitation, the Lease and (ii) principal of and interest on bonds payable by their terms from COIT Revenues. Such payments shall continue as provided herein until such time as the COIT Obligations Fund shall contain an amount sufficient to pay all of the obligations of the City then outstanding which by their terms are payable from such fund. (b) COIT Reserve Fund. To the extent that there are bonds outstanding issued by the .City which by their terms require that the City maintain a reserve therefor, an amount from each Distribution shall next be set apart and paid into the COIT Reserve Fund, if needed, and used to make deposits into the COIT Obligations Fund in the event of any deficiency at any time in such fund with respect to such bonds so that the sum in the COIT Reserve Fund shall equal the least of (i) the maximum annual debt service on the Bonds, (ii) one and one-quarter (1-1/4) times the average annual debt service on the Bonds, or (iii) ten percent (10%) of the proceeds of the Bonds, within the meaning of Section 148(d) of the Internal Revenue Code of 1986, as amended (the "Debt Service Reserve Requirement"), and thereafter no deposit shall be made into the COIT Reserve Fund so long as there shall be on deposit therein an amount equal to the Debt Service Reserve Requirement. (c) COIT Excess Fund. Any remaining COIT Revenues distributed to the City pursuant to the Act shall be deemed excess funds and shall be deposited in the COIT Excess Fund for appropriation and use as permitted by law. In the event of any deficiency at any time in the (i) COIT Obligations Fund for the purposes of paying the rentals on leases or interest on or principal of bonds, which by their terms are payable from COIT Revenues or the (ii) COIT Reserve Fund for purposes of maintaining in said fund the Debt Service Reserve Requirement with respect to bonds which contain such a requirement, funds may be withdrawn from the COIT Excess Fund for deposit into said COIT Obligations Fund or COIT Reserve Fund in the amount of such deficiency. All moneys in said funds shall be segregated and kept separate and apart from all other funds of the City and shall be deposited in lawful depositories of the City and continuously held and secured or invested as provided by law. Interest earned in each such fund shall be credited to such fund except that the amount of interest earned on the COIT Reserve Fund when added to the amount on deposit in the COIT Reserve Fund shall not exceed the Debt Service Reserve Requirement, and any such excess shall be deposited into the COIT Excess Fund. 9. The City reserves the right to enter into additional leases or authorize and issue bonds, payable out of its COIT Revenues, ranking on a parity with the rentals payable under the Lease, for the purpose of financing the cost of additional projects (the "Parity Obligations"). The authorization and issuance of Parity Obligations shall be subject to the following conditions precedent: ss~Mnty~ iaaz9i~t _ 4 _