Res85 10102 - Laserfiche WebLink

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Amounts placed in the Redemption Fund from investment earnings on monies in said Fund are to be spent within a l-vear period beginning on the date of receipt in payment of the principal of and interest on the Bonds, and, if not needed for such purpose, by applying same at the earliest call date to the advance retirement of the Bonds; Amounts placed in the Redemption Fund which are to be used to call Bonds in advance of their stated maturities shall be accumulated therein until the amount available equals or exceeds the amount required to call and redeem one or more of the Bonds, and, subject to the provisions of Section 21 hereof, are to be expended on the next ensuing March 2 or September 2 in payment of the principal, call premium and interest payable on that date, and the expenses of call and redemption. Any surplus remaining in the Redemption Fund after payment of all of the Bonds and the interest thereon shall first be applied to repayment to the City of any special taxes levied by the City for the purpose of paying for lands purchased by the City under Part 13 of the Act, less its recovery on the lands purchased at such delinquent sale, and also of any costs incurred by the City thereunder. The remainder shall be repaid in accordance with the provisions of Section 8783 of the Act to persons paying supplemental assessments, if any, and the balance may be proportionately credited upon the final installments due upon the assessments securing the Bonds and repaid to those persons whose assessments have been previously paid or may be transferred to the general fund of the City. Section 13. Reserve Fund. An amount equal to Five Percent (5%) of the aggregate principal amount of the Bonds shall be placed in the Reserve Fund upon receipt of the proceeds of the sale thereof. Monies in the Reserve Fund shall constitute a trust fund for the benefit of Bondholders. Any income realized from the investment of monies in the Reserve Fund shall be credited thereto, provided that in order to assure that the Bonds do not become arbitrage bonds, as defined in the Internal Revenue Code of 1954, as amended, the Reserve Fund shall be administered so that at no time does the amount therein exceed the lesser of the maximum annual debt service or one and one-quarter (1.25) times the average annual debt service of all Bonds outstanding. Monies in the Reserve Fund shall be paid and transferred in the following amounts and at the following times and under any of the following circumstances: (a) Whenever there are insufficient funds in the Redemption Fund to meet the next maturing installment of principal of or interest on the Bonds due to delinquent installments of assessments, an amount necessary to pay such defi~iency shall be transferred as an advance from the Reserve Fund to the Redemption Fund. The amount so advanced shall be reimbursed and deposited in the Reserve Fund from the proceeds -7-