5.2a ERMUSR 04-13-2021 - Laserfiche WebLink

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Funds and Accounts The following summary of certain covenants in the Awarding Resolution are not to be considered a full statement of the provisionsof the Awarding Resolution and are qualified by reference to the Awarding Resolution. The Awarding Resolution will provide for the continuation of the Electric Fund (the“Fund”) established under prior resolutions of the Commission and the accounts therein. All Gross Revenues of the Electric System are irrevocably pledged and appropriated and shall be credited to the Operating Account of the Fund as received. Within the Fund, the accounts discussed below will be maintained, and Gross Revenues received in the Fund shall be apportioned to the said accounts as described below. Project Accountinto which there shall be paid the proceeds from the sale of the Series 2021B Bonds,plus available City funds,less the proceeds of the Series 2021B Bonds deposited into the Reserve Account, and less any accrued interest paid by the Purchaser of the Series 2021B Bondsand other amounts deposited into the Debt Service Accountas determined by the Finance Manager of the Commission. Operating Accountinto which all Gross Revenues are received. There shall be paid from the Operating Account when due all reasonable, necessary, and current Operating Expenses of the Electric System. All money on hand in the Operating Account as of the first day of each month in excessof the sum of (i)Operating Expenses then due and payable and to become due and payable during such calendar month, plus (ii) the Operating Reserve Requirement, shall constitute Net Revenues and shall be credited to other accounts in the Electric Fund. Debt Service Accountinto which is deposited any accrued interest paid by the Purchaser of the Series 2021B Bondsand other amounts deposited into the Debt Service Accountas determined by the Finance 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 Series 2021B 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 Accountin 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 ofeach series of bonds. Approximately $535,661 will be deposited into the Reserve Account upon delivery of the Series 2021B Bonds. 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 theReserve 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. - 12 - 277