4



         In connecti.n with the establishment and main-
tenance of the Bcnd Fund, the Board covenants and agrees,
as follows:

         (1) There will be deposited in the Bond Fund the
accrued interest, if any, received at the time or times of
the sale or sales of the Bcnds, together with such further
sum, if any, from the Bond proceeds as may be determined
by the Board in the Series Resolution as necessary to pro-
vide for the payment of the interest on the Bonds for a period
not in excess of three years from the date of the issuance
thereof.

         (2) That from and after the issuance of any of the
Bonds, beginning on September 1, 1964 and thereafter on
May 1 of each year, the Treasurer shall transfer from the
Revenue Fund and deposit to the credit of the Bond Fund all
the Revenues as and when the same are received and de-
posited in the Revenue Fund until there has been so deposited
and paid into the Bond Fund an amount equal to the total interest
and principal becoming due on or prior to the next succeeding
May 1 on all Bonds outstanding, and if by reason of a dispro-
portionate amount of principal being scheduled to become due
on May 1 of any year provision is made in the pertinent Series
Resolution authorizing such Series of Bonds for payments into
said Bond Fund in additicn to current interest and principal
requirements then the amount of such additional payments
shall also be transferred from the Revenue Fund and deposited
to the credit of the Bond Fund as so specified in such Series
Re sol ution.

         Prov;ided, further, that for the purpose of creating
and maintaining a. res.erve in said Bond Fund equal to the
maximum Aggregate Principal, Interest and Bond Fund Charges
the amount to be sc set aside into said Bond Fund from and after
May 1, 1965, shal.l. be 125% of the amounts otherwise herein
provided to be paid into said Bond Fund until and so long as
such reserve is so accumulated, and thereafter the same shall
be resumed and continued whenever and so long as required
to restore and maintain such reserve.

          (3) The amount by which such payments exceed the
Aggregate Principal, Interest and Bond Fund Charges in any
particular twel.ve month period shall be held in said Bond Fund
as a reserve, and unless a'.'. Bonds payable from said Bond Fund
at the time ouitstandilg are to be then retired only such part of
said Bond Fund may be used to purchase or redeem Bonds in
advance of maturity as may be in excess of the Aggregate
Principal, Interest and Bond Fund Charges and the prescribed
reserve. Any such purchase of Bonds prior to maturity shall