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9.03. Debt Service Account. Upon delivery of the Series 2004A Bonds, the <br />Commission shall credit to the Debt Service Account, from the proceeds of the Series 2004A <br />Bonds, the accrued interest received from the Purchaser of the Series 2004A Bonds and any <br />unused discount. As of the first day of each month there shall be credited to the Debt Service <br />Account out of the Net Revenues on hand in the Operating Account an amount equal to not less <br />than one-sixth of the interest due within the next six months on all Bonds then Outstanding and <br />one-twelfth of the principal, if any, due within the next twelve months on all Outstanding Bonds; <br />provided that the Commission shall be entitled to reduce a monthly apportionment by the amount <br />of any surplus previously credited and then on hand in the Debt Service Account. Money on <br />hand in the Debt Service Account shall be disbursed only to pay principal of and interest on the <br />Bonds when due; provided that on any date when the amount then on hand in the Debt Service <br />Account plus the amount in the Reserve Account allocable to a series of Bonds, is sufficient with <br />other money available for the purpose to pay or discharge all Bonds of that series and the interest <br />accrued thereon in full, it may be used for that purpose. If any payment of principal of or interest <br />on Bonds becomes due when money in the Debt Service Account is temporarily insufficient <br />therefor, an amount equal to such deficiency shall be transferred thereto from the Reserve <br />Account, the Repair and Replacement Account or the Rate Stabilization Account, in that order. <br /> <br /> 9.04. Reserve Account. Upon delivery of the Series 2004A Bonds the Commission <br />shall credit to the Reserve Account from available funds on hand, the sum of $94,000. If the <br />balance in the Reserve Account is ever less than the applicable Reserve Requirement, as of the <br />first day of each month all Net Revenues in the Operating Account remaining after the required <br />credit to the Debt Service Account shall be credited to the Reserve Account until the balance <br />therein equals the Reserve Requirement. If the balance in the Reserve Account has not been <br />restored to the Reserve Requirement from transfers of Net Revenues within six months of the <br />deficiency, the Commission shall transfer to the Reserve Account from the Repair and <br />Replacement Account or the Rate Stabilization Account, an amount sufficient to restore the <br />balance therein to the Reserve Requirement. <br /> <br /> If on any date on which principal or interest is due on the Bonds the balance then on hand <br />in the Debt Service Account is not sufficient to pay such principal and interest in full, the <br />Commission shall immediately transfer from the Reserve Account to the Debt Service Account <br />an amount equal to such deficiency. <br /> <br /> If any Additional Bonds are issued, the Commission shall, upon issuance of the <br />Additional Bonds, increase the balance in the Reserve Fund to the Reserve Requirement, <br />calculated after giving effect to the issuance of such Additional Bonds. <br /> <br /> Money held in the Reserve Account shall be used only to pay maturing principal and <br />interest when money in the Debt Service Account is insufficient therefor. <br /> <br /> If at any time (including, but not limited to, any Principal Payment Date and any <br />Redemption Date), the balance in the Reserve Account exceeds the Reserve Requirement, the <br />Commission shall transfer such excess to the Debt Service Account. <br /> <br /> 9.05. Repair and Replacement Account. The Repair and Replacement Account is <br />hereby established as a separate account within the Electric Fund. As of the first day of each <br /> <br />1670578vl 19 <br /> <br /> <br />