10963-23-Ordinance Authorizing the Acquisition and Construction of Certain Additions and Improvements to the Municipal Waterworks of the City of South Bend

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amount equal to the Reserve Requirement for the 2023 Bonds or such series thereof, the 2009A Bonds, and any Parity Bonds hereafter issued by the City. (h) To the extent that the amount in the Debt Service Reserve Account (excluding any Subaccounts) on the date of the issuance of the 2023 Bonds or any series thereof is less than the Reserve Requirement for the Bonds (excluding any Bonds for which a Subaccount was established), that portion of the shortfall which exists as of the date of issuance of the 2023 Bonds or such series thereof shall, at the election of the Mayor and Controller with the advice of the Municipal Advisor, be deposited into the Debt Service Reserve Account (excluding any Subaccounts) either (i) in a single payment, to be paid on the date of the issuance of the 2023 Bonds or such series thereof, or (ii) in equal monthly installments, over a period not to exceed sixty(60)months after the date of issuance of the 2023 Bonds or such series thereof, with the first installment due and payable on the date of the issuance of the 2023 Bonds or such series thereof, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which the 2023 Bonds or such series thereof are issued. To the extent that the amount on deposit in the Common Reserve Subaccount of the Debt Service Reserve Account on the date of issuance of the 2023 Bonds or any series thereof is equal to less than the Reserve Requirement for the Series 2023 Bonds or any series thereof, that portion of the shortfall which exists as of the date of issuance of the 2023 Bonds or such series thereof shall, at the election of the Mayor and Controller with the advice of the Municipal Advisor, be deposited into such Common Reserve Subaccount either(i) in a single payment, to be paid on the date of the issuance of the 2023 Bonds or such series thereof, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of the 2023 Bonds or such series thereof, with the first installment due and payable on the date of the issuance of the 2023 Bonds or such series thereof, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which the 2023 Bonds or such series thereof are issued. (i) To the extent that Parity Bonds are issued subsequent to the issuance of the 2023 Bonds or any series thereof,the additional amounts,if any,which are required to be paid into the Common Reserve Subaccount to satisfy the Reserve Requirement as a result of the issuance of such Parity Bonds shall, at the election of the Mayor and Controller with the advice of the Municipal Advisor, be deposited into the Debt Service Reserve Account either (i) in a single payment, to be paid on the date of the issuance of such Parity Bonds, or (ii) in equal monthly installments,over a period not to exceed sixty(60)months after the date of issuance of such Parity Bonds,with the first installment due and payable on the date of the issuance of such Parity Bonds, and the remaining installments payable on the last day of each calendar month, commencing on ,the last day of the month in which such Parity Bonds are issued. (j) Subject to Section XV(h) and Section XV(i) above, any deficiency in the balance maintained in the Debt Service Reserve Account (excluding any Subaccounts) or any Subaccounts shall be promptly made up from the next available Net Revenues after credits into the Bond and Interest Account, on a pro rata basis, calculated by reference to the amount of the deficiency in the Debt Service Revenue Account (excluding any Subaccounts) and each Subaccount. Any moneys in the Debt Service Reserve Account (excluding any Subaccount) in excess of the Reserve Requirement for the Bonds (excluding any Bonds for which a Subaccount was established) and any moneys in the Common Reserve Subaccount for the 2023 Bonds or any series thereof, the 2009A Bonds and any Parity Bonds hereafter issued by the City, may be used for the prepayment of installments of principal, together with interest due thereon, on the then outstanding Bonds which are then callable or prepayable,or for the purchase of outstanding Bonds or installments of principal of and interest on the Bonds at a price not exceeding par and accrued interest, or may be transferred to the Improvement Fund. (k) As an alternative to holding cash funds in the Debt Service Reserve Account or any Subaccount, the City, with the advice of the Municipal Advisor and nationally recognized bond counsel, may satisfy all or any part of its obligation to maintain any amount in the Debt Service Reserve Account or such Subaccount by depositing a Credit Facility (as defined in the next sentence)therein(which,for any 2023 Bonds sold to the Authority through the IFA Program, will require the written consent of the Authority to the deposit of any such Credit Facility), provided that such deposit does not adversely affect any then existing rating on the Bonds. A "Credit Facility" is hereby defined as a letter of credit, liquidity facility, insurance policy or comparable instrument furnished by a bank, insurance company, financial institution or other entity pursuant to a reimbursement agreement or similar instrument between such entity and the City. To the extent that any Bonds are insured, and the Credit Facility is not being provided by - 1 8 -