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<br />e <br /> <br />e <br /> <br />244882 <br /> <br />e <br /> <br />Requirement, and the investment of funds in the Reserve <br />Account, shall be subject to such restrictions and <br />affirmative obligations as shall be necessary in order that <br />none of the Secured Bonds shall (in the absence of <br />compliance with any such restrictions or affirmative <br />obligations) become generally subject to federal income <br />taxation. <br /> <br />In this subparagraph 16(d), references to prov~s~ons of <br />the Code shall be to the then-applicable provisions of the <br />Internal Revenue Code of 1986, as amended, supplemented or <br />superseded, and to the regulations, rulings and decisions <br />thereunder, relating to tax-exempt obligations. <br /> <br />The City hereby appropriates to the Reserve Account <br />from the proceeds of the Bonds the sum of $ 309,000 , <br />being the Reserve Requirement calculated as described above <br />for the Bonds. The Reserve Requirement shall be held as a <br />reserve for the payment of the principal of and interest on <br />all bonds payable from the Debt Service Account when due. <br />Whenever and to the extent the balance in the Reserve <br />Account is less than the Reserve Requirement, all earnings <br />on monies invested in the Reserve Account shall be retained <br />therein, monies on hand in the Surplus Account shall be <br />transferred to the Reserve Account, and (if a deficiency <br />still exists following the preceding steps) Gross Revenues <br />from the Gross Revenue Account shall be transferred to the <br />Reserve Account to the extent such Gross Revenues are not at <br />the time needed in the Debt Service Account or Operating <br />Account. Whenever the balance in the Reserve Account <br />exceeds the Reserve Requirement, the excess shall be <br />transferred to the extent of any deficiency in the Debt <br />Service Account and the operating Account, in that order of <br />priority, and then to the Surplus Account. Moneys on hand <br />in the Reserve Account shall be used only to pay interest or <br />principal actually due on bonds payable from the Debt <br />Service Account when, if and to the extent that such <br />interest or principal cannot be paid in full from the Debt <br />Service Account; provided that the amount of the reserve <br />allocable to any bond issue payable from the Debt Service <br />Account may be used at any time to defease such bond issue <br />(or applicable portion thereof) in accordance with paragraph <br />26, so long as the balance remaining on hand in the Reserve <br />Account following such use is not less than the Reserve <br />Requirement with respect to outstanding bonds which continue <br />to be payable from the Debt Service Account. <br /> <br />(e) Operatinq Account. To the Operating Account <br />there shall be credited such amounts of the Gross <br /> <br />20 <br />