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Show I Page 18 BLINDING OUTLOOK Jan. 16, LEGAL NOTICES shall making the payments hereinabove provided, on and the be used by the City for the payment of Interest Monthly, comencing on the first day of of the amount necessary April, 1959, to pay the next maturing Installment of principal on the bonds authorized hereby. 2. principal of additional after authorized to payment need be made into the Bond Fund, the Reserve Fund, or both, if the amount in the Bond Fund, plus the amount in the Reserve Fund not exceeding such maximum, total a sum at least equal to the entire amount D. of Lae No herein authorized, both; as to interest to their respective maturities, outstanding principal and bonds and both accrued and not accrued, in which case moneys in said two funds in an amount at least equal to such principal and interest requirements shall be used solely to pay such as the same accrue, and any moneys in excess thereof in said two funds and any other moneys derived from the operation of the system may be used in any lawful manne'r determined by the City Council. I If, in any month, the City shall, for any reason, fail to pay into the Bond Fund the full amount above stipulated from the net revenues of said system, then an amount shall be paid into said Bond Fund in such month fton said Reserve Fund equal to the difference between that paid from said net revenues and the full amount so stipulated. The money so used shall be replaced in the Reserve Fund from the first revenues thereafter received from the operation of the system not required to be otherwise applied. If, in any month, the City shall, for any reason, fall to pay into the Reserve Fund the full amount above stipulated from the net revenues of said system, the difference between the amount paid and the amount so stipulated shall in a like manner be paid therein from the first revenues thereafter received from the operation of the The moneys system not required to be otherwise applied. in the Bond Fund and the Reserve Fund shall be used solely end only for the purpose of paying the principal of and the Interest on the bonds issued hereunder; provided, however, that any moneys at any time in excess of the stipulated maximum in the Reserve Fund may be withdrawn therefrom and used as herein provided for net revenues deE. rived from the system; and provided that any moneys in the Bond Fund end the Reserve Fund in excess of accrued and unaccrued principal and interest requirements to the re- spective maturities of the outstanding bonds may be used as hereinabove provided in Paragraph D of this section. F. Fourthly, any balance remaining in the Income bond or other obligations here- be issued and payable from the revenues of the system, including reasonable reserves therefor, as the same accrue; provided that the lien of such additional revenues bonds or other obligations on the net income and of the system and the pledge for the payment thereof shall be subordinate to, the lien end pledge of the bond herein authorized, as hereinafter provided. C. the Reserve Fund shall be accumulated and maintained as a continuing reserve to be used, except as hereinafter provided In said Paragraphs D and E of this Section 12, only to prevent deficiencies in the payment of the principal of and interest on the bonds hereby authorized resulting from the failure to deposit into said Bond Fund sufficient funds to pay said principal and interest as the same accrue. after Fund one-twel- fth Thirdly, and concurrently with the payments required by the next preceding Paragraph B, except as provided In Paragraphs D and E of this Section 12 of this ordinance, and In addition to the moneys required to be deposited In the Reserve Fund by Section 10 of this ordinance, any moneys remaining In the Income Fund to constitute at least an amount equal to twenty per centum (201) of the amount required to be deposited in the Bond Fund under Paragraph B of this Section 12, shall be deposited monthly into a bank account to be known as the "City of B landing Joint Electric, Water and Sever Refunding and Improvement Revenue Bonds, Series April 1, 1959, Reserve Fund," herein sometimes referred to as the Reserve Fund, until a reserve has been accumulated in an amount rqual to the maximum principal and interest requirements for any succeeding year on the bonds hereby authorized and then outstanding, and thereafter there shall be deposited monthly from any moneys remaining in the Income Fund Into the Reserve Fund such amount or amounts, if any, necessary to maintain said Reserve Fund as a continuing reserve in an amount not less than such maximum to meet possible deficiencies in said Bond Fund. The moneys in 1859 of the fund and accounts hereinabove ba designated in this Section 12 of this ordinance shall maintained and kept separate from all other funds and accounts in a bank or banks, each of which is a member of G. Each Each monthly the Federal Deposit Insurance Corporation. fund and account on payment shall be made into the proper the first day of each month, except that when the first a legal holiday, then day of any month shall be a Sunday or such payment shall be made on the next succeeding secular day. After making the payments hereinabove in thia Section 12 required to be made, the remaining revenues derived from the operation of the system, if any, may be used as the City Council may see fit. H. That the bonds authorized herein con- irrevocable and exclusive lien on all the net Section 13. stitute a first, j t j i of said system. income and revenues " v- - ! That nothing in this ordinance conSection 14. tained shall be construed in such a manner as to prevent the issuance by the City of additional bonds or other obligations payable from the Income derived from the operation of the system and constituting a lien upon said revenues inferior and junior to the lien of the bonds herein authorized, nor to prevent the issuance of bonds or other obligations refunding all or a part of the bonds herein authorized; provided, however, that the City is not, and has not been, in default as to any payments required to be made in Section 12 of this ordinance for a period of not less than twenty-fo- ur months immediately prethe issuance of such additional bonds or other obligaceding tions; and provided, further, that before any such additional bonds or other obligations are authorized or actually iasued, other than refunding bonds or other refunding obligations, the earnings derived from the operation of said system for the fiscal year immediately preceding the date of the issuance of such addi- -j tional obligations shall have been sufficient to pay the cost of operation and maintenance for such fiscal year, and, in addition, sufficient to pay an amount representing one hundred fifty per centum (150T) of the maximum combined principal and interest re- quirements, for a single year, on the outstanding bonds authorized by this ordinance and the bonds or other obligations proposed to be issued. written certification by a licensed engineer, or at the City's option, a certified public accountant, to be employed by the City, that said earnings are sufficient to pay said amounts, shall be conclusively presumed to be accurate in determining the right of the City to authorize, issue, sell and deliver said additional bonds or other obligations. Nothing herein contained shall be construed so as to permit the City to issue bonds or other obligations payable from the revenues of the system and a having lien thereon either on a parity with, or and prior superior to, the bonds authorized A by this ordinance. additional Junior lien bonds or other obligations Issued in compliance with the terms hereof shall bear interest payable semiannually on the first days of April and October in each year, except that the first coupon on any bond may represent interest accruing for any period not in excess of one year, and such obligations shall mature on the first day of April in the years designated by the City Council during the tens! of said bonds or other obligations. Any : I 14 Section 15. That the provisions of Sections 13 and' hereof are subject to the exception that if at any time after ; I |
