Res85 10102 - Laserfiche WebLink

Browse Search

system for the Bonds shall upon receipt of the proceeds of the Bonds be transferred forthwith from the Improvement Fund and placed in the Bond Administration Fund. Fees or charges incurred by the City payable to the Agent in satisfaction of the City's liability to the Agent for the Agent's services in performing the duties of the registration system described herein, shall be paid from the Bond Administration Fund. Such fees or charges, not paid from the proceeds of the Bonds, cash payment of assessments or investment earnings on monies in the Bond Administration Fund shall be reimbursed or satisfied by the collection of such fees or charges or estimates thereof with the principal of and interest on the assessments which remain unpaid at the time of such collection and which pertain to the Bonds. The amount of any such collection shall be apportioned pro rata among such assessments remaining unpaid at the time of such collection. Such amounts shall be collected with the same collection and enforcement procedures and with the same priority and effect as with respect to the collection of the principal of and interest on the unpaid assessments and shall be placed in the Bond Administration Fund and expended as aforesaid. Section 15. Investment of Funds. Monies in the Improvement Fund, the Redemption Fund, the Reserve Fund and the Bond Administration Fund may be invested in any obligations which are then authorized by the laws of the State of California as investments for local agencies, maturing on a date or dates prior to the need for such monies. Any income or interest thereon shall accrue to and be deposited in the fund from which said monies were invested, subject to the limitation in Section 13 hereof with respect to the Reserve Fund. Section 16. Arbitrage Covenant. The City covenants that as long as any of the Bonds remain outstanding, no use will be made of the proceeds thereof at any time which use (1) was not reasonably expected at the time of issuance of the Bonds, and (2) would, if such use had been reasonably expected at the time of issuance of the Bonds, have caused such Bonds to be "arbitrage bonds" within the meaning of Section l03(c) of the Internal Revenue Code of 1954, as amended, and applicable regulations thereunder as the same may be amended from time to time, and that the City will comply with the requirements of said Section l03(c) and applicable regulations thereunder, as they apply to the Bonds throughout the term thereof. Section 17. Collection of Unpaid Assessments. The unpaid assessments shown on the list of unpaid assessments filed with the Treasurer, together with the interest thereon, shall remain and constitute a trust fund for the redemption and payment of the principal of the Bonds and for the interest due thereon, which unpaid assessments shall be payable in annual series corresponding in number to the number of serial maturities of the Bonds issued. An annual proportion of each unpaid assessment shall be payable in each year preceding the date of maturity of each of the several annual series of Bonds issued, sufficient to pay the Bonds when due, and such proportion of each unpaid assessment coming due in any year, together with the annual interest thereon, shall be payable in the same manner and at the same -9-