1988-001SWDD - Laserfiche WebLink

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allocated to the Reserve Account (except the investment income thereon) exceed the amount required, such excess may be withdrawn and released to the District. No further deposits to the Sinking Fund, the Bond Amortization Account or the Reserve Account shall be required when the aggregate sums deposited therein are and remain at least equal to the sum of all of the principal and interest then due and thereafter becoming due in all ensuing years for the Bonds then outstanding. (5) Fifth, deposit in an account to be known as the "Renewal and Replacement Fund", which fund is hereby created and established, an amount not less than ten per centum (10%) of the Gross Revenues of the System for the previous Fiscal Year, until there shall be on deposit in such Renewal and Replacement Fund an amount recommended by the Consulting Engineers and approved by the District. The moneys in the Renewal and Replacement Fund shall be used only for the purposes of paying the cost of extensions, enlargements or additions to, or the replacement of depreciable capital assets of the System and emergency repairs thereto, and to provide an adequate reserve for depreciation of all depreciable capital assets. Moneys on deposit in the Renewal and Replacement Fund shall also be used to supplement the Reserve Account, if necessary, in order to prevent a default in the payment of the principal of and interest on the Bonds. The moneys on deposit in the Renewal and Replacement Fund shall be withdrawn for renewal and replacement purposes only upon the authorization of the Board and the approval of the Consulting Engineers. (6) The Issuer shall next apply moneys in the Revenue Fund to the payment of current debt service and reserve requirements of any obligations of the District issued to finance the cost of additions, acquisition, extensions and improvements to the System which are junior and subordinate to the lien of the Bonds on the Pledged Funds. (7) The balance of any moneys remaining in the Revenue Fund after the above required payments have been made may be used by the District for any lawful purpose. • C. PLEDGED FUNDS AND INVESTMENT OF FUNDS. The Revenue Fund, the Sinking Fund, the Bond Amortization Account, the Reserve Account, the Renewal and Replacement Fund and any and all funds, accounts, etc. therein shall be Pledged Funds, shall constitute trust funds for the purposes provided herein for such funds and shall be used only for the purposes and in the manner provided herein. All moneys in all funds, accounts, etc. created or established hereunder shall be continuously secured in the manner by which deposits of public funds are required to be secured by the laws of the State of Florida. Moneys on deposit in the Revenue Fund, the Operating Account, the Initial Operating Subaccount and 17