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shall also be credited monthly out of the Net Revenues an amount equal to at least <br /> one-sixth of the interest to become due. on the next succeeding interest payment date <br /> plus one-twelfth of the principal to become due on the next two succeeding interest <br /> payment dates on the Bonds and nay other obligations which may, in accordance <br /> with the provisions of this resolution, be issued and made payable from the <br /> Revenue Bond Account. Moneys in the Revenue Bond Account shall be used only <br /> for the payment of such principal and interest when due. So long as the Reserve <br /> Account created pursuant to Section 3.04 hereof is fully funded, all Net Revenues <br /> remaining after satisfaction of the above requirements may be used for any lawful <br /> corporate purpose selected by the City Council. <br /> 3.04. Reserve Account. There is hereby established within the Liquor <br /> Store Fund a 'Reserve Account." The Reserve Account shall be initially funded <br /> with $69,000 from the proceeds of the Bonds. Thereafter, all available Net Revenues <br /> remaining after the required monthly deposit to the Revenue Bond Account shall <br /> be deposited in the Reserve Account until the balance therein equals $106,387.50, <br /> which is the maximum annual debt service due in any future fiscal year on the <br /> Bonds. The money in the Reserve Account shall be used to pay principal and <br /> interest on the Bonds payable from the Revenue Bond Account whenever the <br /> amount on hand in the Revenue Bond Account is insufficient, but if used for such <br /> purpose it shall be restored to the required balance as soon as possible out of <br /> available Net Revenues. Should additional bonds payable from the Revenue Bond <br /> Account be issued pursuant to Section 3.06 hereof, the City shall increase the balance <br /> in the Reserve Account to an amount equal to maximum annual debt service <br /> payable in any future fiscal y ear during the remaining term of the bonds then <br /> outstanding on all bonds (including the additional bonds) payable from the <br /> Revenue Bond Account. Such increase shall be funded to the maximum extent <br /> feasible from the proceeds of the additional bonds, and, to the extent necessary, from <br /> the periodic deposit of available Net Revenues. <br /> 3.05. Issuance of Refunding Bonds. The City reserve the right and <br /> privilege of issuing and selling refunding certificates or bonds if and to the extent <br /> needed to refund maturing bonds payable from the Revenue Bond Account, if <br /> moneys in the Liquor Store Fund are at any time insufficient for the payment in full <br /> of the principal and interest due thereon, which refunding obligations shall be <br /> payable from the Revenue Bond Account on a parity with the outstanding bonds <br /> payable therefrom, but shall not mature earlier than the final maturity of all bonds <br /> then outstanding. Nothing herein shall require the holder of any bond to accept a <br /> refunding obligation in exchange therefor. <br /> 3.06. Additional Bonds. the City hereby agrees that it will not issue any <br /> additional obligations payable from the Net Revenues of the Store or constituting a <br /> lien or charge thereon superior to or on a parity with the bonds previously issued <br /> unless it has first retired, or placed in escrow with a depository bank, moneys or <br /> II-2 <br />