1993-073 - Laserfiche WebLink

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Y'. t r. Reserve Account, shall be determined annually on the fust day of the Fiscal Year by an independent firm of certified public accountants, who may be the accountants for the County, in accordance with generally accepted accounting principles. Notwithstanding the foregoing, in lieu of, in whole or in part, the required deposits into the Reserve Account, the County may cause to be deposited into the Reserve Account any Reserve Account Credit Instrument meeting the requirements of the Master Bond Resolution. Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest on Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other purpose. However, upon the valuation of the Reserve Account in each year, if the moneys applied and allocated to the Reserve Account (except the investment income thereon) exceed the amount required, such excess may be withdrawn and released to the County. If the Reserve Account Requirement shall at any time be satisfied in whole or in part with a qualifying letter of credit and such letter of credit is about to expire or terminate, the County authorizes and directs the Paying Agent to draw upon such letter of credit prior to its expiration or termination to the extent required to fully fund the Reserve Account requirement unless a replacement Reserve Account Credit Instrument is in place or the Reserve Account is otherwise fully funded in its required amount. Flow of Funds for the Bonds Under the Master Bond Resolution, the County has covenanted that all Revenues shall upon receipt thereof be deposited in the 'Water and Sewer Revenue Fund" (the "Revenue Fund"). All Revenues on deposit in the Revenue Fund for the Bonds shall be disposed of by the County subject to the following order of priority. (1) First, the County shall transfer in each month to the Operation and Maintenance Fund the amount required to be deposited therein to pay the Operating Expenses due or to become due for such month. (2) Second, the County shall deposit in each month to a fund to be known as the "Water and Sewer Revenue Bonds Sinking Fund" (the "Sinking Fund'), one-sixth (1/61h) of such sum as will be sufficient to pay interest on the Bonds as the same shall become due on the next interest payment date, together with the amount of any deficiency in prior deposits for interest on Bonds, and one -twelfth (1/12th) of the principal of Bonds maturing on the next principal payment dale with respect to the Bonds. Such deposits shall take into account the sums, if any, deposited in the Sinking Fund out of proceeds from the sale of Bonds to pay interest thereon. in addition, there shall be deposited in the Sinking Fund amounts sufficient to pay the fees and charges of the Paying Agent. (3) Third, the County shall deposit into an account in the Sinking Fund to be known as the "Bond Amortization Account; one -twelfth (1/121h) of the principal of Bonds subject to mandatory call for redemption on the next principal payment date with respect to the Bonds. (4) Fourth, the County shall deposit into an account in the Sinking Fund to be known as the "Reserve Account," a sum sufficient to increase the amount on deposit in the Reserve Account to the Reserve Account Requirement. A sum to be specified by resolution of the County will be deposited in the Reserve Account out of the proceeds of the sale of Series 1993 Bonds. However, in no Fiscal Year shall Net Revenues in excess of twenty percent (20%) of the Reserve Account Requirement be required by Subsection P or Subsection Y of Section 17 of the Master Bond Resolution, unless principal and interest on the Bonds has been paid from the Reserve account or there is ten percent (10%) or more decline in the market value of the Reserve Account. No further deposits shall be 11