08-10-09 Common Council Meeting Agenda & Packet

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equal but not exceed an amount (the "Reserve Requirement") equal to the least of (i) maximum annual debt service on the Bonds and any other bonds payable from the Reserve Account, (ii) one hundred twenty-five percent (125%) of average annual debt service on the Bonds and any other bonds payable from the Reserve Account, or (iii) ten percent (10%) of the proceeds of the Bonds and any other bonds payable from the Reserve Account, plus if and to the extent the amount set forth above is less than maximum annual debt service on the Bonds and any other bonds payable from the Reserve Account, a minor portion of the proceeds thereof under Section 148(e) of the Code. If the initial deposit into the Reserve Account does not equal the Reserve Requirement, or if no deposit is made, the City shall deposit a sum of Net Revenues into the Reserve Account 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 Bonds. The Reserve Account shall constitute the margin for safety and protection against default in the payment of principal of and interest on the Bonds and any other bonds payable from the Reserve Account, and the moneys in the Reserve Account shall be used to pay current principal and interest on the Bonds and any other bonds payable from the Reserve Account to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. Any deficiency in the balance maintained in the Reserve Account shall be made up from the next available Net Revenues remaining after credits into the Bond and Interest Account. Any moneys in the Reserve Account in excess of the Reserve Requirement shall either be transferred to the Sewage Works Improvement Fund or be used for the purchase of outstanding bonds or installments of principal of fully -32- BDDBOI 5738468v 1