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SECTION 4.02. Installment Payments; Reserve Fund Payments. <br />(a) The City may, subject to any rights of prepayment provided for in a Supplement, <br />pay to the Authority, solely from Net System Revenues and from no other sources, the Purchase <br />Price in installment payments over a period not to exceed the maximum period permitted by law, <br />all as specified in a Supplement. <br />In the event that a Trustee notifies the City that the amount on deposit in a Reserve Fund <br />or Reserve Account is less than the Reserve Requirement, the City shall deposit or cause to be <br />deposited, solely from Net System Revenues, in such Reserve Fund or Reserve Account such <br />amounts on a monthly basis as are necessary to increase the amount on deposit therein to the <br />Reserve Requirement in the ensuing six months. <br />(b) The obligation of the City to make the Installment Payments solely from Net <br />System Revenues is absolute and unconditional, and until such time as the Purchase Price shall <br />have been paid in full (or provision for the payment thereof shall have been made pursuant to <br />Article IX), the City will not discontinue or suspend any Installment Payments required to be <br />made by it under this section when due, whether or not the Project or any Component thereof is <br />operating or operable or has been completed, or its use is suspended, interfered with, reduced or <br />curtailed or terminated in whole or in part, and such Installment Payments shall not be subject to <br />reduction whether by offset or otherwise and shall not be conditioned upon the performance or <br />nonperformance by any party of any agreement for any cause whatsoever. <br />ARTICLE V <br />SYSTEM REVENUES <br />SECTION 5.01. Commitment of the Net System Revenues. All Parity Obligations, <br />including Parity Installment Payment Obligations, shall be secured by a prior lien on and pledge <br />of Net System Revenues, and within such lien priority, such Parity Obligations shall be of equal <br />rank without preference, priority or distinction of any Parity Obligations over any other Parity <br />Obligations. The City does hereby grant such prior lien on and pledge of Net System Revenues <br />to secure Parity Obligations. Such lien and pledge shall constitute a first lien on Net System <br />Revenues. The City hereby represents and states that it has not previously granted any lien or <br />charge on any of the Net System Revenues except as may be stated in a Supplement; provided, <br />however, that out of Net System Revenues there may be apportioned such sums for such <br />purposes as are expressly permitted by this Article V. <br />SECTION 5.02. Allocation of System Revenues. (a) In order to carry out and <br />effectuate the commitment and pledge contained in Section 5.01, the City agrees and covenants <br />that all System Revenues shall be received by the City in trust and shall be deposited when and <br />as received in the City of Santa Ana Water Revenue Fund (the "Water Revenue Fund ") and <br />which fund the City agrees and covenants to maintain so long as any Installment Payments <br />remain unpaid, and all moneys in the Water Revenue Fund shall be so held in trust and applied <br />and used solely as provided herein. The City shall pay (i) directly or as otherwise required all <br />Maintenance and Operation Costs, (ii) to the Trustee, as assignee of the Authority, for deposit in <br />the Payment Fund for Parity Obligations, the amounts specified in any Issuing Instrument, as <br />55394.00011 \8819608.3 8M733 <br />