HomeMy WebLinkAbout02098and above the amount therein set aside and credited to the Reserve
Account, is insufficient to meet maturing installments of either interest
on or principal of and interest on the Bonds, such deficiency shall be
made up from the Reserve Account by the withdrawal of money therefrom.
Any deficiency created in the Reserve Account by reason of any such
withdrawal shall then be made up from the money in the Water Fund
first available after making necessary provision for the payments re-
quired to be made into the 1967 Bond Redemption Fund to pay the principal
of and interest on the Bonds next coming due.
All money in the Reserve Account above provided for may be kept
in cash or invested in direct obligations of the United States of America
having a guaranteed redemption price prior to maturity or maturing not
later than ten ,years from date of purchase and in no event maturing
later than the last maturity of the Bonds outstanding at the time of
such purchase. Interest earned on or any profits realized from the
sale of any of such investments shall be deposited in and become a part
of the 1967 Bond Redemption Fund.
Section 13. The corporate authorities of the City hereby
declare, in fixing the amounts to be paid into the 1967 Bond Redemption
Fund and Reserve Account as hereinbefore provided, that they have exer-
cised due regard to the necessary costs of maintenance and operation
of the System and the amount of the revenue of the System previously
pledged for the payment of the principal of and interest on the Out-
standing Parity Bonds, and have not obligated the City to set aside
and pay into said,Fund and Account a greater amount of the revenue of
the System than in their ,judgment will be available over and above
such costs of maintenance and operation and the charges necessary to
pay such principal and interest.
Section 14, The City hereby covenants with the owner and
holder of each of the Bonds for as long as any of the same remain out-
standing; as follows:
10.