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The moneys and investments in the Bond Fund are irrevocably pledged to and shall be <br />used by the Trustee, from time to time, to the extent required, for the payment ofprincipaI of, <br />and interest on the Bonds, as and when such principal and interest shall become due and payable. <br /> <br />Section 5.03 Reserve Fund. <br /> <br /> (a) There is hereby established with the Trustee a separate trust account to be <br />designated "Public Project Lease Revenue Bonds Reserve Fund" (the "Reserve Fund"). Upon <br />issuance of the Series 2005A Bonds, the Trustee shall deposit $ of proceeds of <br />Bonds plus $ contributed by the City in the Reserve Fund. Thereafter, the Trustee <br />shall deposit in the Reserve Fund any other moneys paid to the Trustee for credit or transfer to <br />the Reserve Fund. <br /> <br /> (b) The Reserve Fund shall be maintained at the "Reserve Requ_!rement" which shall <br />be $ . The Trustee'shall recalculate the balance in the Reserve Fund on'an annual <br />basis as provided in Section 5.07, and upon making such calculation the Trustee shall transfer to <br />the Bond Fund any sums held in the Reserve Fund in excess of the Reserve Requirement. <br /> <br /> (c) Subject to the provisions of Section 7.03, mounts on hand in the Reserve Fund <br />shall be transferred by the Trustee to the Bond Fund if, on any Interest Payment Date, the <br />amount then on hand in the Bond Fund is not sufficient to pay the principal, if any, and interest <br />then due. <br /> <br /> (d) If on any date the amount in the Reserve Fund is less than the Reserve <br />Requirement, as a result of either (i) a revaluation in accordance with Section 5.07, o/' (ii) a <br />withdrawal under subsection (g) or th) below, the Trustee shall notify the City of the amount of <br />such deficiency and request that the City immediately make a Rental Payment under Section 5.1 <br />of the Lease equal to the amount of such deficiency. If sums are transferred from the Reserve <br />Fund to the Bond Fund under subsection (c) above, the Trustee shall notify the Issuer of the <br />amount of such transfer and request that the rssuer make a semiarmuai Rental Payment on the <br />applicable Interest Payment Date in an amount equal to one half of the amount so transferred and <br />on the next applicable Interest Payment Date in an amount equal to one half of the amount so <br />transferred. <br /> <br /> (e) Earnings on sums in the Reser4e Fund shall, upon receipt, be credited to the Bond <br />Fund, if and to the extent that, agter giving effect to the transfer, the Reserve Fund Requirement <br />is maintained. Investments should be valued at fair market value and marked to market at least <br />twice per year. Investments may not have maturities extending beyond five years. <br /> <br /> (f) At such time, if any, as the amounts on hand in' the Reserve Fund equal or exceed <br />the total amount of principal, interest and premium (if any) remaining to be paid on all <br />Outstanding Bonds, the Trustee shall transfer such amounts from the Reserve Fund tO the Bond <br />Fund and use the same for such debt service purp. oses, as and when due. <br /> <br /> (g) If any rebate of arbitrage is required under Section 6.07 and Issuer fails to satisfy <br />that requirement, Trustee may disburse funds from the Reserve Fund for that purpose. <br /> <br /> Section 5.04 Intentionally Omitted. <br /> <br />1763903vl 28 <br /> <br /> <br />