08-10-09 Common Council Meeting Agenda & Packet

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The City may at any time and from time to time fund all or any part of the Reserve Account by depositing in the Reserve Account one or more debt service reserve surety bonds or insurance policies (each, a "Reserve Account Credit Instrument"), each of which is issued by an insurance company rated at the time of deposit in the highest rating category by Standard & Poor's Corporation and Moody's Investors Service. As long as any Reserve Account Credit Instrument is in full force and effect, any valuation of the Reserve Account shall treat the maximum amount available under such Reserve Account Credit Instrument as its value. If the Reserve Account Credit Instrument is provided subsequent to the initial cash contribution to the Reserve Fund, and the Bonds are purchased by the Authority, notice of the purchase of the Reserve Account Credit Instrument shall be given to the Authority. Prior to applying any funds held in any debt service reserve accounts securing any obligations payable out of the revenues of the sewage works of the City to the payment of such obligation, the City shall cause all funds held in the Sewage Works Sinking Fund (or any like fund or account from which debt service has been structured to be paid) to be applied in full before any such reserve accounts are so applied. (d) Depository Ai?reements. The Sinking Fund, containing the Bond and Interest Account and the Reserve Account, and/or the Construction Account may be held by a financial institution acceptable to the Authority, pursuant to terms acceptable to the Authority. If the Sinking Fund and the accounts therein are held in trust, the City shall transfer the monthly required amounts of Net Revenues to the Bond and Interest Account and the Reserve Account, and the financial institution holding such funds in . trust shall be instructed to pay the required payments in accordance with the payment - 34 - BDDB01 5738468v1