Application of Gross Revenues; Funds and Accounts Sample Clauses

Application of Gross Revenues; Funds and Accounts. The Municipality’s Gross Revenues shall be deposited into the Revenue Fund and applied in the following order of priority (the “Flow of Funds”): first, to pay the cost of Current Expenses currently as bills accrue. Such amount as may be necessary in the opinion of the governing body of the Municipality to pay the reasonable and proper Current Expenses for the next succeeding sixty (60) days may be retained and accumulated in the Revenue Fund before making transfers to other funds and accounts; second, to transfer on the first day of each month to the Principal and Interest Account, for credit to the respective subaccounts thereof, a proportionate amount necessary to meet on each Payment Date the payment of all interest on and principal of the Parity Indebtedness. All amounts transferred and credited to the various Principal and Interest subaccounts shall be expended and used by the Municipality for the sole purpose of paying the Debt Service Requirements of respective Parity Indebtedness as and when the same become due at Maturity and on each Payment Date. If at any time the moneys in the Revenue Fund are insufficient to make in full the transfers at the time required to be made to the Principal and Interest Account and to the subaccounts established to pay the principal of and interest on any Parity Indebtedness, the available moneys in the Revenue Fund shall be divided among such debt service accounts in proportion to the respective principal or interest amounts, as applicable, of such Parity Indebtedness at the time Outstanding which are payable from the moneys in such Principal and Interest subaccounts;third, to transfer monthly to the Bond Reserve Account, for the credit of the respective subaccounts thereof as appropriate, the amount, if any, required to restore the Bond Reserve Account to the Bond Reserve Requirement. Except as hereinafter provided, all amounts transferred and credited to the Bond Reserve Account shall be expended and used by the Municipality solely to prevent any default in the payment of interest on or principal of the Parity Bonds on any Maturity date or Payment Date if the moneys in the respective Principal and Interest subaccounts are insufficient to pay the Debt Service Requirements of such Parity Bonds as they become due. So long as the moneys in the Bond Reserve Account aggregate the Bond Reserve Requirement, no further transfers to such account shall be required, but if the Municipality is ever required to expend and use a ...