HomeMy WebLinkAbout01768Section 11. In the event that the Bonds outstanding
are all retired by the issuance of refunding bonds that will
require smaller amounts to be paid each year for principal and
interest coming due thereon than required in the same calendar
years for the payment of the principal of and interest on the Bonds,
the semiannual rental payments provided for in the Lease and
required hereby to be paid into the 1956 Bond Redemption Fund
may be correspondingly reduced to the amounts required each year
to pay only the principal of and interest on such refunding bonds,.
and if it is necessary to pay any premiums to retire the Bonds
outstanding the money for such premiums may be taken out of the
interest earned by investment of the money in the Reserve Account.
Section 12. That there be and is hereby also created
another special fund of the city, to be known as the "Port Townsend
Transmission Line Replacement Fund," which Fund shall be kept in
trust and segregated from all other funds of the city. For as
long as the Lease remains in effect, the money in such Fund may
only be used as provided in subsections IV C and F of the Lease
for replacements or betterments of the Leased System or any part
thereof which shall be made necessary by reason of wear or de-
terioration or by reason of any catastrophe or act of God which
might cause the Leased System to become inoperative.
The city hereby covenants and agrees that on or before
November first of each year commencing with the year 1956, and
continuing as long as the Lease is in effect, it will set aside
from moneys received from the operation of its water supply and
distribution system other than the Leased System and from any
17.