ORDINANCES & RESOLUTIONS 2009 - Laserfiche WebLink

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(a) Bond and Interest Account. There shall be credited on the last day of each calendar month to the Bond and Interest Account established hereby, an amount of net revenues equal to the sum of one-sixth (1/6) of the interest on all then outstanding bonds of the Sewage Works payable on the then next succeeding Interest Payment Date, and one-twelfth (1/12) of the amount of principal payable on the next principal payment date on all then outstanding bonds of the Sewage Works which will be payable on the then next succeeding principal payment date, until the amount of interest and principal payable on the next succeeding respective principal and interest payment dates shall have been so credited; provided that such fractional amounts shall be appropriately increased, if necessary, to provide for the first interest and first principal payments. There shall similarly be credited to the account the amount necessary to pay the bank fiscal agency charges, if any, for paying principal and interest on outstanding bonds of the Sewage Works as the same become payable. The Town shall, from the sums deposited in the Sewage Works Sinking Fund and credited to the Bond and Interest Account, remit promptly to the registered owners of the outstanding bonds of the Sewage Works or to the bank fiscal agency sufficient moneys to pay the principal and interest on the due dates thereof together with the amount of any bank fiscal agency charges. (b) Debt Service Reserve Account. On the last day of each calendar month, after making the credits to the Bond and Interest Account, there shall be credited from available net revenues to the Debt Service Reserve Account established hereby in amounts sufficient to produce, in equal monthly installments over a sixty (60) month period, an amount equal to the least of (i) the maximum annual debt service on the Bonds, (ii) one hundred twenty-five percent(125%) of the average annual debt service on the Bonds, or (iii) ten percent (10%) of the proceeds of the Bonds (the "Debt Service Reserve Requirement");provided, however, that if the Bonds are sold to the Authority as part of its SRF Program, the Debt Service Reserve Requirement shall mean the maximum annual debt service on the Bonds and any parity bonds. Notwithstanding the foregoing, the Clerk-Treasurer, with the advice of the Financial Advisor of the Town, may elect to satisfy all or a portion of the Reserve Requirement on the date of issuance of the Bonds from other available funds of the Town. Said credits to the Debt Service Reserve Account shall continue until the balance therein shall equal the Debt Service Reserve Requirement. In addition, the Debt Service Reserve Requirement may be satisfied with cash, a debt service reserve surety bond or a combination thereof. However, as long as any Bonds are owned by the Authority and remain outstanding, the Town shall receive consent of the Authority as part of its SRF Program before funding any portion of the Debt Service Reserve Account with such surety bond. The Debt Service Reserve Account shall constitute the margin for safety as a protection against default in the payment of principal of and interest on the outstanding bonds of the Town payable from the net revenues of the Sewage Works and any other bonds of the Town payable from the net revenues of its Sewage Works hereafter issued so long as the Debt Service Reserve Requirement has been increased proportionately, and the moneys in the Debt Service Reserve Account shall be used to pay current principal and interest on the Bonds and any other bonds of the Town payable from the net revenues of the Sewage Works, to the extent that moneys in the Bond and Interest Account are insufficient for that purpose. Any deficiencies in credits to the Debt Service Reserve Account shall be promptly made up from the next available net revenues remaining after credits into the Bond and Interest 22