Approving and Authorizing a lease for construction and equipping of a new public works service center

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continued until all such amounts have been paid pursuant to such leases or bonds. In addition, there is hereby created and established (i) a COIT Obligations Fund and a COIT Reserve Fund (which two funds the City hereby covenants and agrees to cause to be kept and maintained so long as needed for the purposes set forth herein), and (ii) an COIT Excess Fund. All of the COIT Revenues distributed to the City pursuant to the Act shall be set aside in said funds in the following order of priority and to the extent indicated below: (1) COIT Obligations Fund (2) COIT Reserve Fund; and (3) COIT Excess Fund. (a) COIT Obligations Fund. As soon as possible upon receipt by the City of its COIT Revenue distribution (each, a "Distribution"), but in any event not later than the fifteenth (15~') day following such distribution, there shall be set aside from the COIT Revenue Fund and paid into the COIT Obligations Fund a sufficient amount for the payment of all amounts due on any lease or bonds which by their respective terms are payable from such fund and, with respect to bonds which may be payable from such fund, the necessary fiscal agency charges for paying the principal of and interest on such bonds. If the City receives monthly Distributions, the monthly payments into the COIT Obligations Fund shall be in an amount equal to at least one-sixth (1/6) of the 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. If the City receives distributions 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, (2) one and one-quarter (1-1/4) times the average annual debt service on the Bonds, or (3) ten ::ODMA\PCDOCS\SBDOCSI\85906\2 - 3 -