Refunding of Outstanding Sewage Works Revenue Bonds of 2006, 2007B in the Principal Amount not to Exceed $28,000,000

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(iii) The City may, upon the issuance of the 2015 Bonds, establish within the Reserve Account a subaccount for the 2015 Bonds ("2015 Subaccount"). The 2015 Subaccount shall constitute the margin for safety and as protection against default in the payment of principal of and interest on the 2015 Bonds, and the moneys in such 2015 Subaccount shall be used to pay current principal and interest on the 2015 Bonds to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. (iv) No amounts in the 2015 Subaccount shall be available to pay any principal of or interest or redemption premium, if any, on any Bonds, except the 2015 Bonds. (v) The balance to be maintained in the 2015 Subaccount shall equal but not exceed an amount (the "Reserve Requirement") equal to the least of (i) the maximum annual debt service on the 2015 Bonds, (ii) one hundred twenty-five percent (125%) of average annual debt service on the 2015 Bonds, or (iii) ten percent (10%) of the proceeds of the 2015 Bonds. (vi) If the 2015 Subaccount is established, and the initial deposit into the 2015 Subaccount does not equal the Reserve Requirement, or if no deposit is made, the City shall deposit a sum of Net Revenues into the 2015 Subaccount on the last day of each calendar month until the balance equals the Reserve Requirement. The monthly deposits shall be equal in amount and sufficient to accumulate the Reserve Requirement within five (5) years of the date of delivery of the 2015 Bonds. (vii) Any deficiency in the balance maintained in the 2015 Subaccount shall be made up from the next available Net Revenues remaining after credits into the Bond and Interest Account. Any moneys in the 2015 Subaccount in excess of the Reserve Requirement shall either be transferred to the Sewage Works Improvement Fund (as described herein) or be used for the purchase of outstanding bonds or installments of principal of fully registered bonds at a price not exceeding par and accrued interest, and redemption premium, if any. (viii) As an alternative to holding cash funds in the 2015 Subaccount,the City, with the advice of the Financial Advisor and the City's bond counsel, may satisfy all or any part of its obligation to maintain any amount in the 2015 Subaccount by depositing a Credit Facility (as defined below) therein, provided that such deposit does not adversely affect any then existing rating on the 2015 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. As long as any such Credit Facility is in full force and effect, any valuation of the 2015 Subaccount shall treat the maximum amount available under such Credit Facility as its value. To the extent that any 2015 Bonds are insured, and the Credit Facility is not being provided by the insurer of such 2015 Bonds, such insurance policy shall be subject to the insurer's prior written consent. The Mayor and the Controller are hereby authorized to obtain such a Credit Facility for each series of 2015 Bonds being sold, and 13