HomeMy WebLinkAbout01767The city further agrees that it will maintain such thirtieth year
rental payment in the Reserve Account for as long as any of the
Bonds are outstanding; provided, that such rental payment and all
interest earned by the investment thereof that may be in such
Account shall be used for the redemption of the last outstanding
Bonds as provided in the preceding section hereof.
In the event there shall be a deficiency in the 1956
Bond Redemption Fund to meet maturing installments of either
interest on or principal of and interest on the Bonds, such de-
ficiency shall be made up from the Reserve Account by the withdrawal
of cash therefrom. Any deficiency created in the Reserve Account
by reason of any such withdrawal may be made up out of any surplus
funds which the city may have on hand and that are available for
such purpose.
All moneys in the Reserve Account may be kept in cash
or invested from time to time in bonds or other direct obligations
of the United States of America maturing not later than twelve
years from date of purchase and in no event later than the last
maturity of the,Bonds then outstanding. Interest earned on any
such investments shall be retained in the Reserve Account, and
the Trustee's fees for its services as Trustee for the bondholders
and Paying Agent of the principal of and interest on the Bonds for
the city hereunder shall first be paid from said interest. Such
interest may be used by the Trustee to purchase any of the Bonds
in the open market at a price not greater than that at which such
Bonds may be called for redemption at the time of such purchase,
or may be used to call and retire any Bonds at the discretion of
the Trustee.
16.