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26 necessary to do so to ensure receiving sufficient tax increment revenues from the Project Area to pay debt service on the Bonds and any Parity Debt, amounts required to pay debt service on the Bonds and any Parity Debt on the next succeeding September 1; and (C) if the Successor Agency determines it is necessary to ensure timely payment of debt service on the Bonds and any Parity Debt, the Successor Agency may also collect on each January 2 or June 1, as necessary, a reserve, to be held in the Debt Service Fund, for the payment of debt service on the Bonds and any Parity Debt on March 1 and September 1 of the next succeeding calendar year; and (D) any amounts required to replenish the Reserve Account and any other reserve account established under any Parity Debt Instrument and any amounts due and owing to the 2018 Reserve Insurer or any other issuer of a Qualified Reserve Credit Instrument under the Indenture; and (E) if any amounts then due and payable to the 2018 Reserve Insurer under the Indenture are not included on any current Recognized Obligation Payment Schedule and the Successor Agency is then legally permitted to amend such Recognized Obligation Payment Schedule, the Successor Agency will submit to the Oversight Board and the DOF a request to amend such Recognized Obligation Payment Schedule to include such amounts then due and payable to the 2018 Reserve Insurer; and (F) the Successor Agency will not submit to the Oversight Board and the State Department of Finance a request for the final amendment permitted for its Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6 of the Dissolution Act without the prior written consent of the 2018 Reserve Insurer, unless all amounts that could become due and payable to the 2018 Reserve Insurer under the Indenture would be included as a line item on the Last and Final Recognized Obligation Payment Schedule following approval of the requested amendment. The Successor Agency has no power to levy and collect taxes, and various factors beyond its control could affect the amount of Tax Revenues available in any six-month period to pay the principal of and interest on the 2018 Bonds (see “RISK FACTORS”). History of Submission of the Recognized Obligation Payment Schedules. The Successor Agency has procedures in place to ensure full and timely compliance with the above- described covenant. The Successor Agency has submitted all of its Recognized Obligation Payment Schedules on a timely basis. In addition, there are strong incentives for the Successor Agency to submit Recognized Obligation Payment Schedules on time. If the Successor Agency does not submit a Recognized Obligation Payment Schedule to the Oversight Board and the DOF at least 90 days prior to each January 2 and June 1, then the City of San Leandro will be subject to a $10,000 per day civil penalty for every day the schedule is late. Additionally, if the Successor Agency does not submit a Recognized Obligation Payment Schedule to the Oversight Board and the DOF at least 80 days prior to each January 2 and June 1, then the Successor Agency’s administrative cost allowance may be reduced by up to 25%. For additional information regarding procedures under the Dissolution Act relating to late Recognized Obligation Payment Schedules and implications for the 2018 Bonds, see “RISK FACTORS – Recognized Obligation Payment Schedule.” 131