5.1. ERMUSR 06-14-2016 - Laserfiche WebLink

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amount in the Reserve Account allocable to a series of bonds, is sufficient with other money available for the purpose to pay or discharge all bonds of that series and the interest accrued thereon in full, it may be used for that purpose. If any payment of principal of or interest on the Parity Bonds becomes due when money in the Debt Service Account is temporarily insufficient, an amount equal to such deficiency shall be transferred from the Reserve Account or the Repair and Replacement Account,in that order. Reserve Account in which the Commission will maintain the amount of the Reserve Requirement, which is an amount equal to the least of(i) 10% of the original principal amount of the Parity Bonds and any Additional Bonds; (ii) the maximum amount of principal and interest payable during the then current fiscal year or any future fiscal year on all Parity Bonds and Additional Bonds determined as of the date of issuance of each series of bonds; or(iii) 125% of the average annual principal and interest payable on all Parity Bonds and Additional Bonds determined as of the date of issuance of each series of bonds. Approximately $711,467 and $146,000 will be deposited into the Reserve Account upon delivery of the Series 2016A Bonds and the Series 2016B Bonds,respectively. If the balance in the Reserve Account is ever less than the applicable Reserve Requirement, as of the first day of each month all Net Revenues in the Operating Account remaining after the required credit to the Debt Service Account shall be credited to the Reserve Account until the balance therein equals the Reserve Requirement. If the balance in the Reserve Account has not been restored to the Reserve Requirement from transfers of Net Revenues within six months of the deficiency, the Commission shall transfer to the Reserve Account, from the Repair and Replacement Account, an amount sufficient to restore the balance to the Reserve Requirement. Repair and Replacement Account into which shall be credited from the Operating Account such portion of the Net Revenues in excess of the current requirements of the Debt Service Account and the Reserve Account ("Surplus Revenues") as the Commission shall determine to be required for replacement or renewal of worn out, obsolete, or damaged properties and equipment of the Electric System. Money in the Repair and Replacement Account shall be used only for the purposes above stated or,if so directed by the Commission,to pay Operating Expenses, to redeem bonds which are subject to redemption according to their terms, to pay principal or interest when due as required by the Awarding Resolutions, to restore a deficiency in the Reserve Account, or to pay the cost of improvements to the Electric System; provided that, in the event additional improvements or additions to the Electric System are financed other than from bonds payable from the Debt Service Account, Surplus Revenues from time to time received may be segregated and paid in to on e or more separate and additional accounts for the repayment of such indebtedness and interest thereon, in advance of payments required to be made in to the Repair and Replacement Account. Net Revenues in excess of those required for the foregoing purpose may be used for any proper purpose. Additional Parity Bonds Additional obligations may be issued on a parity of lien with the Bonds and the Outstanding Bonds so long as the Net Revenues of the Electric System for the audited fiscal year immediately preceding the issuance of such Additional Bonds, adjusted as described below, are not less than 125% of the average annual principal and interest due on all Outstanding Bonds and the Additional Bonds to be issued, during the remaining term of the Outstanding Bonds. For purposes of the coverage test set forth above, the Net Revenues for the last audited fiscal year immediately preceding the issuance of such Additional Bonds may be adjusted for such fiscal year as follows: (i) the Gross Revenues for such audited fiscal year may be increased to reflect the Gross Revenues which would have been received had any rate increase placed in effect after the commencement of the audited fiscal year been in effect for the entire audited fiscal year; and (ii) by including the additional revenues reasonably determined by the Commission to be likely to result from the acquisition and construction of the facilities to be financed by such Additional Bonds, provided that the debt service on the proposed Additional Bonds is funded until the estimated date of completion of such facilities. - 13 - 131