Construction Additions & Improvements to the Sewage Works

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of the sewage works, as such interest shall fall due, (b) the necessary fiscal agency charges for paying said bonds and interest, (c) the principal of all bonds which by their terms are payable from the revenues of the sewage works, as such principal shall fall due, and (d) an additional amount as a margin of safety and for the payment of premiums upon bonds redeemed by call or purchase, which margin, to- gether with any unused surplus of such margin carried f orward from the preceding year, shall equal not less than ten per cent (10 %) of all other amounts so required to be paid into said Sinking Fund; provided, how- ever, that the Sewage Works Revenue Bonds, dated April 1, 1954, shall have priority in respect to the payment of interest and principal from the funds in said Sewage Works Sinking Fund. The term "net revenues" as used in this section shall be construed to mean the revenues remaining after the costs of operation, maintenance and repair have been paid. The monthly payments into said Sinking Fund shall be in an amount equal to at least one - twelfth (1/12) of the amount required for such payments dur- ing the then next succeeding twelve (12) calendar months and shall continue until such time as said fund shall contain an amount sufficient to pay all of the bonds then outstanding, together with the interest thereon to the dates of maturity thereof. In addition to said required monthly payments into the Sewage Works Sinking Fund, all of the net revenues of said sewage works not used in making said required sinking fund payments shall be set aside and 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. 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 - 15 -