Res85 9885 - Laserfiche WebLink

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to unpaid assessments and, under the circumstances hereinafter specified, to the advance retirement of the Bonds; and (j) Any amounts transferred from the Improvement Fund on account of surplus amounts therein, which amounts are to be applied as credits to the assessments which remain unpaid, or any supplemental assessments, as determined by the Council; Amounts placed in the Redemption Fund (except amounts placed therein in connection with the prepayment of assessments and amounts received from the investment of monies in the Redemption Fund) are to be expended in payment of the principal of and interest on the Bonds within thirteen (13) months from the date of deposit therein (except for a reasonable carryover amount not to exceed the greater of one year's earnings on said Fund or one-twelfth of annual debt service of the Bonds), and amounts that can not be so expended are to be applied at the earliest call date to the advance retirement of the Bonds. Amounts placed in the Redemption Fund from investment earnings on monies in said Fund are to be spent within a I-year 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 22 hereof, are to be expended on the next ensuing January 2 or July 2 in payment of the principal, call premium and interest payable on that date, and the expenses of call and redemption. Any surplus remalnlng 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 14. Reserve Fund. An amount equal to Seven Percent (7%) of the principal amount of each division 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. -7-