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J U L '71982 BOOK 50 P 7 <br />Corporation. The Corporation shall initially fund said account <br />with a sum of Five Thousand ($5,000.00) Dollars. The Repair and <br />Replacement account shall be maintained and managed by the <br />Corporation in accordance with the following provisions: <br />(a) Said fund shall be used as a sinking fund and <br />applied only for repairs and/or replacement of the capital assets <br />of the water system by the Corporation as the need arises. <br />(b) County shall have the right to make necessary <br />repairs using said funds in the event of a default on the part of <br />the Corporation in maintaining the quality standards established <br />herein. <br />(c) Interest accruals in said account shall be payable <br />annually to the Corporation. <br />(d) Said account shall be opened and maintained in the <br />name of the Corporation and Corporation shall furnish County with <br />quarterly reports reflecting additions to and the disbursements <br />from said account. <br />(e) County shall inspect the plant and system <br />semi-annually to insure the Corporation is maintaining the plant <br />and system in accordance with the quality standards established <br />herein. <br />a; <br />W <br />(f) The Corporation may make such additional <br />contributions to said fund as the Corporation, in its discretion, <br />may deem necessary in order to adequately fund the Reserve and <br />Replacement Account. If, upon application by the Corporation, the <br />Corporation makes a showing that the amount in said account is in <br />excess of that reasonably required to meet anticipated repair and <br />replacement requirements, the County may permit a disbursement of <br />said excess to the Corporation and/or may reduce the percentage of <br />gross revenues required to be allocated to said account on either <br />a permanent or temporary basis. If it should appear during the <br />term of this Franchise that the amount in said account is <br />inadequate to meet the reasonably anticipated repair and <br />replacement requirements, County, upon proper notice and hearing <br />pursuant to Section XXI of this Ordinance, may require an increase <br />in the percentage of gross revenues required to be allocated to <br />said account. The burden of proving inadequacy of the account <br />15 <br />