Parity Reserve Account Requirement means, (a) for the 2012 Parity Bonds, 2015 Parity Bonds and 2016 Parity Bonds, zero, (b) for Future Parity Bonds designated in a Series Resolution as “Covered Parity Bonds”, the lesser of: (i) Maximum Annual Bond Debt Service with respect to all Covered Parity Bonds (including any Covered Parity Bonds being issued at the time of calculation) that will mature or come due in the current or any future Borrower Fiscal Year or (ii) 125% of Average Annual Bond Debt Service with respect to Covered Parity Bonds; provided that, upon the issuance of any Series of Future Parity Bonds, the Parity Reserve Account Requirement shall not be required to be funded or increased by an amount greater than 10% of the proceeds of that Series, and (c) for Future Parity Bonds that are not Covered Parity Bonds, the amount (which may be zero) specified in a Series Resolution as the Parity Reserve Account Requirement for the Parity Bonds of such Series. For purposes of calculating the Parity Reserve Account Requirement, the initial issue price of Parity Bonds that constitute Capital Appreciation Bonds shall be deemed to be the sale proceeds of such Capital Appreciation Bonds.
Parity Reserve Account Requirement means the lesser of (i) the maximum annual Installment Payments payable under the Agreement with respect to all Notes secured by the Parity Reserve Account, (ii) 125% of the average annual Installment Payments payable under the Agreement with respect to all Notes secured by the Parity Reserve Account in the current or any subsequent Fiscal Year and (iii) 10% of the stated principal amount of all Notes secured by the Parity Reserve Account; provided, however, that if any Series of Notes secured by the Parity Reserve Account has original issue discount or premium that exceeds 2% of the stated redemption price at maturity plus any original issue premium attributable exclusively to underwriter’s compensation, the initial offering prices to the public shall be used in lieu of the stated principal amount for purposes of the 10% limitation. The Parity Reserve Account Requirement may be composed of cash, Permitted Investments or Reserve Alternative Instruments.