Flow of Gross Revenues. Until the Crossover Date, the City shall deposit the Gross Revenues of the Electric System as received in the Revenue Account. On or before the twentieth day of each calendar month, the Finance Director shall withdraw the entire amount on deposit in the Revenue Account and shall allocate and deposit such amount in the indicated priority to the following accounts and funds:
(i) First, so long as any of the Senior Bonds are outstanding, to the Bond Service Account, one-sixth of the interest becoming due and payable (less any interest which has already been provided for) on the outstanding Senior Bonds within the next six-month period and one-twelfth of the principal amount which will mature and be payable on the outstanding Senior Bonds within the next twelve-month period; and, so long as any of the Senior Bonds are outstanding, to the Bond Sinking Account, the amount required with respect to any term Senior Bonds to provide for mandatory sinking fund installments; and
(ii) Second, so long as any of the Senior Bonds or Qualified Obligations are outstanding, to the O & M Account, an amount sufficient for the payment of Maintenance and Operation Expenses as said expenses become due and payable; and
(iii) Third, so long as any of the Senior Bonds are outstanding, to the Reserve Fund, the amount required, if any, to provide a balance equal to Maximum Annual Debt Service; and
(iv) Fourth, so long as any of the Senior Bonds or Qualified Obligations are outstanding, to the R & R Account, an amount equal to one percent (1%) of the Gross Revenues received in the preceding calendar month until a balance is established, or reestablished, therein equal to two percent (2%) of the depreciated book value of the land, general plant and equipment which constitute the net utility plant of the Electric System; and
(v) Fifth, so long as any of the Senior Bonds or Qualified Obligations are outstanding, to the Rebate Account, the amount required with respect to Senior Bonds in accordance with the Code; and
(vi) Sixth, to the Surplus Revenue Fund, all moneys in the Revenue Account remaining after the above transfers have been made and all covenants required by the resolutions relating to the Senior Bonds have been performed, which moneys shall constitute Surplus Revenues.
