Common use of Designated Fund Clause in Contracts

Designated Fund. City of San Xxxx is a municipal corporation and is precluded under the California State Constitution and applicable law from entering into obligations that financially bind future governing bodies, and, therefore, nothing in the Agreement shall constitute an obligation of future legislative bodies of the City to appropriate funds for purposes of the Agreement; provided, however, that (i) City of San Xxxx has created and set aside a designated fund (the “Designated Fund”) for payment of its obligations under the Agreement and (ii) subject to the requirements and limitations of applicable law and taking into account other available money specifically authorized by the San Xxxx City Council and allocated and appropriated to the San Xxxx Clean Energy’s obligations, City of San Xxxx agrees to establish San Xxxx Clean Energy rates and charges that are sufficient to maintain revenues in the Designated Fund necessary to pay its obligations under this Agreement and all of City of San José’s payment obligations under its other contracts for the purchase of energy for San Xxxx Clean Energy. City of San Xxxx shall provide Seller with reasonable access to account balance information with respect to the San Xxxx Clean Energy Designated Fund during the Term. Limited Obligations. City of San José’s payment obligations under the Agreement are special limited obligations of City of San Xxxx payable solely from the Designated Fund and are not a charge upon the revenues or general fund of the City of San Xxxx or upon any non- San Xxxx Clean Energy moneys or other property of the Community Energy Department or the City of San Xxxx.

Designated Fund. City of San Xxxx is a municipal corporation and is precluded under the California State Constitution and applicable law from entering into obligations that financially bind future governing bodies, and, therefore, nothing in the Agreement shall constitute an obligation of future legislative bodies of the City to appropriate funds for purposes of the Agreement; provided, however, that (i) City of San Xxxx has created and set aside a designated fund (the “Designated Fund”) for payment of its obligations under the Agreement and (ii) subject to the requirements and limitations of applicable law and taking into account other available money specifically authorized by the San Xxxx José City Council and allocated and appropriated to the San Xxxx Clean Energy’s obligations, City of San Xxxx agrees to establish San Xxxx Clean Energy rates and charges that are sufficient to maintain revenues in the Designated Fund necessary to pay its obligations under this Agreement and all of City of San José’s payment obligations under its other contracts for the purchase of energy for San Xxxx Clean Energy. City of San Xxxx shall provide Seller with reasonable access to account balance information with respect to the San Xxxx Clean Energy Designated Fund during the Term. Limited Obligations. City of San José’s payment obligations under the Agreement are special limited obligations of City of San Xxxx payable solely from the Designated Fund and are not a charge upon the revenues or general fund of the City of San Xxxx or upon any non- San Xxxx Clean Energy moneys or other property of the Community Energy Department or the City of San Xxxx.