2.0. ERMUSR 08-29-2018 - Laserfiche WebLink

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Debt Service Account into which is deposited any accrued interest paid by the Purchaser(s) of the Bonds and other amounts deposited into the Debt Service Account as determined by the Finance and Office Manager of the Commission. There shall also be credited to the Debt Service Account, out of the Net Revenues on hand in the Operating Account, an amount equal to not less than 1/6 of the interest due within the next six months and 1/12 of the principal due within the next twelve months on all Parity Bonds; provided that the Commission shall be entitled to reduce a monthly apportionment by the amount of any surplus previously credited and then on hand in the Debt Service Account. Money on hand in the Debt Service Account shall be disbursed only to pay principal of and interest on the Parity Bonds when due; provided that on any date when the amount then on hand in the Debt Service Account, plus the 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 fislcal 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 P ity Bonds and Additional Bonds determined as of the date of issuance of each series of bonds. A proximately $275,819 will be deposited into the Reserve Account upon delivery of the Bonds. If he balance in the Reserve Account is ever less than the applicable Reserve Requirement, as of the first da of each month all Net Revenues in the Operating Account remaining after the required credit to the D bt Service Account shall be credited to the Reserve Account until the balance therein equals the R serve Requirement. If the balance in the Reserve Account has not been restored to the Reserve R quirement 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 re tore the balance to the Reserve Requirement. R;.air and Re•lacement 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 re 1 ewal 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 Resolution, to restore a der iciency 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 se.regated and paid in to on e or more separate and additional accounts for the repayment of such ind ebtedness and interest thereon, in advance of payments required to be made in to the Repair and R:placement Account. N=t Revenues in excess of those required for the foregoing purpose may be used for any proper purpose. A d ditional Parity Bonds Additional obligations may be issued on a parity of lien with the Bonds and the Outstanding Bonds so lo i g as the Net Revenues of the Electric System for the audited fiscal year immediately preceding the is,uance of such Additional Bonds, adjusted as described below, are not less than 125% of the average ual principal and interest due on all Outstanding Bonds and the Additional Bonds to be issued, during th remaining term of the Outstanding Bonds. - 12- 21