1996-042 - Laserfiche WebLink

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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 shall be disposed of by the County only in 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 (1/6th) 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 date 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 and the reduction in the amount of interest payable on Term Bonds on the following interest payment date attributable to the purchase and tender of Term Bonds in lieu of mandatory redemption, if any. 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 (1/12th) 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. Upon the issuance of the Series 1996 Bonds, there shall be on deposit in the Reserve Account an amount equal to the Reserve Account Requirement. However, in no Fiscal Year shall Net Revenues in excess of twenty percent (20%) of the Reserve Account Requirement be required to be deposited in the Reserve Account, except as may be required by Subsection P or Subsection Y of Section 17 of the Master Bond Resolution, unless principal and interest on the Bonds have been paid from the Reserve Account or there is a ten percent (10%,) or more decline in the market value of the Reserve Account. No further deposits shall be required to be made into the Reserve Account as long as there shall remain on deposit therein, including any Reserve Account Credit Instrument, a sum equal to the Reserve Account Requirement. The value of the Reserve Account, including investments on deposit in the Reserve Account, shall be determined annually at market 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. Furthermore, the County may at any time and from time to time cause to be deposited in the Reserve Account a Reserve Account Credit Instrument and cause an appropriate amount to be withdrawn from the Reserve Account and released to the County. (S) Fifth, moneys in the Revenue Fund shall be applied to the payment of current debt service and reserve requirements of any obligations of the County which have a lien on the Pledged Funds junior and subordinate to the Gen of the Bonds. 10