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<br />. <br /> <br />. <br /> <br />notice to the Contractor of such election and of the effective date thereof. <br /> <br />Thereafte~, during the period of operation by the United States, the Contractor <br /> <br />shall pay to the United States annually in advance the cost of operation and <br /> <br />maintenance ,of such works as prescribed in notices from the Contracting Officer <br /> <br />to the Contractor. Following written notification from the Contracting Officer, <br /> <br />the care, operation, and maintenance of such works shall be transferred to the <br /> <br />Contractor. <br /> <br />RESERVE FUND FOR EXTRAORDINARY <br />OPERATION AND MAINTENANCE <br /> <br />12. Commencing with execution of this contract and continuing until <br /> <br />such time as all sums of money becoming due hereunder shall have been paid to <br /> <br />the United States, the Contractor shall accumulate and maintain a reserve fund <br /> <br />which will be available for use in the manner, for the purposes, and in the <br /> <br />circumstances hereinafter set forth. Such reserve fund shall consist of <br /> <br />annual deposits by the Contractor of not less than $140,000 to a special <br /> <br />account created by the Contractor. Such annual deposits shall continue until <br /> <br />the amount in the reserve fund is not less than $1,000,000~ Expenditures <br /> <br />shall be made from such reserve fund only for meeting major unforeseen extra- <br /> <br />ordinary costs of operation and maintenance, repair, betterment and replacement <br /> <br />of project works, and for operation and maintenance during periods of special <br /> <br />stress, such as may be caused by drouth, hurricane storms, or other like <br /> <br />emergencies. Proposed ~xpenditures from the said fund shall have prior review <br /> <br />and approval by the Contracting Officer., Whenever said reserve fund is <br /> <br />reduced below $1,000,000 by expenditures therefrom, it shall be restored by <br /> <br />the accumulation of annual deposits of $140,000 commencing with the next year <br /> <br />following that in which the fund is reduced below said amount. Whenever said <br /> <br />reserve fund exceeds $1,000,000 as required under this article, and extra- <br /> <br />ordinary costs of operation and maintenance, repair, betterment, and <br /> <br />14 <br /> <br />Articles 11 and 12 <br />