Agdapkt 2010-12-06 clsd and regular

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I ATTACHNfENT 3 Page 27 I Administrative Expenses shall be deposited by the Director of Finance in the Administrative '� Expense Fund, and (ii) any proceeds of Special Tax Prepayments shall be transferred by the Director of Finance to the Fiscal Agent for deposit by the Fiscal Agent (as specified in writing by the Director of Finance to the Fiscal Agent) in the Prepayments Account established under the Fiscal Agent Agreement. In each Fiscal Year, from the first remittance of Special Taxes received from the County, the City shall first withdraw from the Special Tax Fund an amount equal to that year's Annual Administrative Expense Deposit for deposit to the Administrative Expense Fund. No later than ten (10) Business Days prior to each Interest Payment Date, the City shall withdraw I from the Special Tax Fund and transfer, in the following order of priority: (i) to the Fiscal agent � for deposit in the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund such that the amount in the Bond Fund equals the principal, premium, if any, and interest due on the Bonds on the next Interest Payment Date, (ii) to the Reserve Fund an amount such that the amount then on deposit therein is equal to the Reserve Requirement, (iii) to the Administrative Expense Fund amounts needed to pay Administrative Expenses for the six months prior to the next Interest Payment Date (to the extent not paid from amounts already deposited in the Administrative Expense Fund) or for payment of Costs of Issuance approved by the City and not paid from the Costs of Issuance Fund, and (iv) to the Improvement Fund for the payment or reimbursement of costs of the Project not otherwise funded from proceeds of the Bonds. Any funds remaining after such transfers shall be transferred to the Bond Fund to be used as credit towards special Taxes for the following year, or to redeem Bonds, as directed by the City. Deposit and Use of Proceeds of Bonds The Bonds are additionally secured by amounts generated from proceeds of the Bonds, together with interest earnings thereon pledged under the Fiscal Agent Agreement. The proceeds of the Bonds will be paid to the Fiscal Agent, who will deposit such proceeds in the Reserve Fund, Bond Fund, and Costs of Issuance Fund established under the Fiscal Agent Agreement, and transfer to the City the amounts designated for deposit into the Improvement Fund and into the Administrative Expense Fund. Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure The Special Tax will be collected in the same manner and the same time as ad valorem property taxes, except at the City's option, the Special Taxes may be billed directly to property owners. In the event of a delinquency in the payment of any installment of Special Taxes, the City is authorized by the Act to order institution of an action in superior court to foreclose the lien therefor. The City has covenanted in the Fiscal Agent Agreement with and for the benefit of the Owners of the Bonds that it will annually on or before August 1 of each year review the public records of the County of San Mateo relating to the collection of the Special Tax in order to determine the amount of the Special Tax collected in the prior Fiscal Year, and if the City determines on the basis of such review that the amount so collected is deficient of the total amount of the Special Tax levied in such Fiscal Year, it will within thirty (30) days thereafter institute foreclosure proceedings as authorized by the Act in order to enforce the lien of the delinquent installment of the Special Tax against each separate lot or parcel of land in the District for which such installment of the Special Tax is delinquent, and will diligently prosecute -13-