(A) (1) The entire gross revenues derived from the operation of the system shall be deposited upon receipt in the Revenue Fund. The Revenue Fund shall constitute a trust fund for the purposes provided in this subchapter and shall be kept separate and distinct from all other funds of the issuer and the depository bank and used only for the purposes and in the manner herein provided.
(2) All revenues at any time on deposit in the Revenue Fund shall be disposed of only in the following manner and order of priority:
(a) The issuer shall, each month, transfer from the Revenue Fund an amount sufficient to pay current operating expenses of the system.
(b) The issuer shall next, on the first day of each month, commencing four months prior to the first date of payment of interest on the bonds, apportion and set apart out of the Revenue Fund and remit to the Commission for deposit in the Series 1996 Bonds Sinking Fund, a sum equal to one-third of the amount of interest which will mature and become due on said bonds on the next ensuing quarterly interest payment date; provided that, in the event the period to elapse between the date of such initial deposit in the Bonds Sinking Fund and the next quarterly interest payment date is less than four months, then such monthly payments shall be increased proportionately to provide, one month prior to the next quarterly interest payment date, the required amount of interest coming due on such date.
(c) The issuer shall next, on the first day of each month, commencing four months prior to the first date of payment of principal on the bonds, apportion and set apart out of the Revenue Fund and remit to the Commission for deposit in the Bonds Sinking Fund, a sum equal to one-third of the amount of principal which will mature and become due on said bonds on the next ensuing quarterly principal payment date; provided that, in the event the period to lapse between the date of such initial deposit in the Bonds Sinking Fund and the next quarterly principal payment date is less than four months, then such monthly payments shall be increased proportionately to provide one month prior to the next quarterly principal payment date, the required amount of principal coming due on such date.
(d) The issuer shall next, on the first day of each month, commencing three months prior to the first date of payment of principal of the bonds, if not fully funded upon issuance of the bonds, apportion and set apart out of the Revenue Fund and remit to the Commission for deposit in the Reserve Account, an amount equal to 1/120 of the reserve requirement; provided, that no further payments shall be made into the Reserve Account when there shall have been deposited therein, and as long as there shall remain on deposit therein, an amount equal to the reserve requirement.
(e) The issuer shall next, from the moneys remaining in the Revenue Fund, on the first day of each month, transfer to the Renewal and Replacement Fund a sum equal to 2.5% of the gross revenues each month, exclusive of any payments for account of any Reserve Account. All funds in the Renewal and Replacement Fund shall be kept apart from all other funds of the issuer or of the depository bank and shall be invested and reinvested in accordance with §§ 40.15 to 40.17. Withdrawals and disbursements may be made from the Renewal and Replacement Fund for replacements, emergency repairs, improvements, or extensions to the system; provided, that any deficiencies in the Reserve Account (except to the extent such deficiency exists because the required payments into such account have not, as of the date of determination of a deficiency, funded such account to the maximum extent required hereof) shall be promptly eliminated with moneys from the Renewal and Replacement Fund.
(3) Whenever all of the required and provided transfers and payments from the Revenue Fund into the several special funds, as hereinabove provided, are current and there remains in said Revenue Fund a balance in excess of the estimated amounts required to be so transferred and paid into the Sinking Fund, including the Reserve Account therein, and the Renewal and Replacement Fund during the following month or such longer period as shall be required by the Act, such excess shall be considered as surplus revenues (the “surplus revenue”). Surplus revenues may be used for any lawful purpose of the issuer.
(4) Moneys in the Sinking Fund shall be used only for the purposes of paying principal of and interest on the bonds as the same shall become due. Moneys in the Reserve Account in the Sinking Fund shall be used only for the purpose of paying principal of or interest on the bonds, as the same shall come due, when other moneys in the Sinking Fund are insufficient therefor, and for no other purpose.
(5) All investment earnings on moneys in the Series 1996 Bonds Sinking Fund and the Series 1996 Bonds Reserve Account shall be returned, not less than once each year, by the Commission to the issuer, and such amounts shall, during construction of the project, be deposited in the Construction Trust Fund, and following completion of construction of the project, shall be deposited in the Revenue Fund and applied in full, first to the next ensuing interest payment due on the Series 1996 Bonds and then to the next ensuing principal payment due thereon.
(6) Any withdrawals from the Reserve Account which result in a reduction in the balance of the Reserve Account to an amount below the Reserve Requirement shall be subsequently restored from the first net revenues available after all required payments to the Sinking Fund for payment of debt service on the bonds have been made in full.
(7) As and when additional bonds ranking on a parity with the Series 1996 Bonds are issued, provision shall be made for additional payments into the Sinking Fund sufficient to pay any interest on such additional bonds and accomplish retirement thereof at maturity and to accumulate a balance in the Reserve Account in an amount equal to the reserve requirement.
(8) The Commission is hereby designated as the fiscal agent for the administration of the Sinking Fund created hereunder, and all amounts required for said Sinking Fund shall be remitted to the Commission from the Revenue Fund by the issuer at the times provided herein.
(9) The payments into the Sinking Fund shall be made on the first day of each month, except that when the first day of any month shall be a Sunday or legal holiday then such payments shall be made on the next succeeding business day, and all such payments shall be remitted to the Commission with appropriate instructions as to the custody, use, and application thereof consistent with the provisions of this subchapter.
(10) The issuer shall not be required to make any further payments into the Series 1996 Bonds Sinking Fund or into the Series 1996 Bonds Reserve Account therein when the aggregate amount of funds in said Sulking Fund and Reserve Account are at least equal to the aggregate principal amount of the series 1996 bonds issued pursuant to this subchapter then outstanding and all interest to accrue until the maturity thereof.
(11) The Sinking Fund, including the Reserve Account therein, shall be used solely and only for and is hereby pledged for, the purpose of servicing the bonds and any additional bonds ranking on a parity with them that may be issued and outstanding under the conditions and restrictions hereinafter set forth.
(B) The issuer shall remit from the Revenue Fund to the Commission or the depository bank, on such dates as the Commission or the depository bank, as the case may be, shall require such additional sums as shall be necessary to pay any depository bank’s charges then due. The issuer shall also remit from the Revenue Fund to the authority, on such dates as the Authority and the DEP shall require, the issuer’s allocable share of reasonable administrative expenses of the authority relating to the program, if any.
(C) The moneys in excess of the maximum amounts insured by FDIC in the Revenue Fund and the Renewal and Replacement Fund shall at all times be secured, to the full extent thereof in excess of such insured sum, by qualified investments as shall be eligible as security for deposits of municipal funds under the laws of the state.
(D) The issuer shall complete the “monthly payment form”, the form of which is attached to the loan agreement as Exhibit F, and submit a copy of said form along with a copy of its remittance check to the authority by the fifth day of such calendar month.
(E) If on any monthly payment date the revenues are insufficient to place the required amount in any of the funds and accounts as hereinabove provided, the deficiency shall be made up in the subsequent payments in addition to the payments which would otherwise be required to be made into the funds and accounts on the subsequent payment dates.
(F) All remittances made by the issuer to the Commission shall clearly identify the fund or account into which each amount is to be deposited.
(G) The issuer shall each month, on the day set forth in division (A)(2)(b) above (if such day is not a business day, then the next succeeding business day), deposit with the Commission the SRF administrative fee as set forth in the Schedule Y attached to the loan agreement.
(H) The gross revenues of the system shall only be used for purposes of the system.
(Ord. passed - -)