9937-09 Concerning the Construction of Improvements to the Municipal Waterworks of the City

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first installment due and payable on the date of the issuance of the 2009 Bonds of such Series, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which the 2009 Bonds of such Series are issued. To the extent that the amount in the Subaccount of the Debt Service Reserve Account for the 2009 Bonds of any Series on the date of the issuance of the 2009 Bonds of such Series is less than the Reserve Requirement for the 2009 Bonds of such Series, that portion of the shortfall which exists as of the date of issuance of the 2009 Bonds of such Series shall, at the election of the Executive and Fiscal Officer with the advice of the City's financial advisor, be deposited into such Subaccount either (i) in a single payment, to be paid on the date of the issuance of the 2009 Bonds of such Series, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of the 2009 Bonds of such Series, with the first installment due and payable on the date of the issuance of the 2009 Bonds of such Series, and the remaining installments payable on the last day of each calendar month, commencing on the last day of the month in which the 2009 Bonds of such Series are issued. (j) To the extent that additional Parity Bonds are issued subsequent to the issuance of the 2009 Bonds of any Series, the additional amounts, if any, which are required to be paid into the Debt Service Reserve Account to satisfy the Reserve Requirement as a result of the issuance of such additional Parity Bonds shall, at the election of the Executive and Fiscal Officer with the advice of the City's financial 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 additional Parity Bonds, or (ii) in equal monthly installments, over a period not to exceed sixty (60) months after the date of issuance of such additional Parity Bonds, with the first installment due and payable on the date of the issuance of such additional 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 additional Parity Bonds are issued. (k) Subject to Section 14(i) and Section 14(j) 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 the 2009 Bonds of any Series for which a Subaccount was established), and any moneys in the Subaccount for the 2009 Bonds of any Series for which a Subaccount was established in excess of the Reserve Requirement for the 2009 Bonds of such Series, maybe 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. (1) As an alternative to holding cash funds in the Debt Service Reserve Account or any Subaccount, the City, with the advice of the Financial Advisor and 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 2009 Bonds of any Series for which a Subaccount was -23-