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-27-20OI 12,36PM FROM P. 4. <br /> ill • <br /> Enterprise Fund after the payments and accumulations set forth in FIRST through <br /> THIRD hereof. <br /> (c) Promissory Note Does Not Constitute a Debt. The Promissory Note, <br /> together with the interest thereon, shall be payable only out of: (i) the Note Account; or <br /> (ii) if necessary, the Reserve Account. The CWCB may not look to the general fund of <br /> the District for the payment of the principal of and interest on the Promissory Note, and <br /> the Loan Contract and the Promissory Note shall not constitute a debt or an indebtedness <br /> of the District within the meaning of any constitutional or .tu ory provision or <br /> limitation; nor shall they be considered or held to be general obh., �F °'.. .4). trict. <br /> .....,.- <br /> Section 7. Note Account. Moneys in the Note Accoui t i be use. for the <br /> purpose of paying the principal of and interest on the Promissory 111 ;, U)+-i.. •etermination <br /> by CWCB that the Project is substantially complete the District sha o f e ,`t as y of <br /> each month, credit to the Note Account from the Net Revenue an amount equ. . .1. '". •ata <br /> Portion of the principal and interest to come due on the Promissory Note on the next succe-ding <br /> Payment Date. Moneys in the Note Account also shall be used to pay the interest accruing under <br /> provision A(2) of the Loan Contract prior to the completion of the Project. To the extent that <br /> moneys are not used from the final disbursement of loan funds pursuant to provision A(2) for <br /> such purpose, Net Revenues and other legally available moneys shall be credited to the Note <br /> Account prior to substantial completion of the Project in order to make said payment when due. <br /> Section S. Reserve Account. <br /> (a) Use of Moneys in the Reserve Account. Moneys in the Reserve Account <br /> shall be used, if necessary, only to prevent a default in the payment of the principal of or <br /> interest on the Promissory Note on any Payment Date and the Reserve Account is hereby <br /> pledged to the payment of the Promissory Note. In the event the amounts credited to the <br /> Note Account are insufficient to pay the principal of or interest on Promissory Note when <br /> due, the District shall transfer from the Reserve Account to the Note Account an amount <br /> which, when combined with moneys in the Note Account will be sufficient to make such <br /> payments when, due_ <br /> (b) Funding and Maintenance of Required Reserve Amount. Upon the <br /> determination by CWCB that the Project is substantially complete the District shall, <br /> commencing with the next succeeding Payment Date, annually credit an amount equal to <br /> one-tenth of the Required Reserve Amount on or before each Payment Date until such <br /> time as the amount credited thereto is equal to the Required Reserve Amount (i.e., the <br /> Reserve Account is to be fully funded within ten years from substantial completion of the <br /> Project). In the event that moneys from the Reserve Account are transferred to the Note <br /> Account as provided in paragraph (a) of this Section, such amount shall be replenished <br /> within 90 days from the date of such transfer. Moneys credited to the Reserve Account <br /> may be invested or deposited in lawful securities or obligations and all interest income <br /> from the investment or reinvestment of moneys credited to the Reserve Account shall be <br /> credited to the Reserve Account until the amount therein is equal to the Required Reserve <br /> 6 <br />