AgdaPkt 2003-07-28 - Laserfiche WebLink

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O• A - Account of the Special Tax Fund at the Reserve Requirement or to avoid a default in payment on the Bonds. Any foreclosure proceedings commenced as described above could be stayed by the commentt ement of bankruptcy proceedings by or against the owner of the delinquent property. See "BONDOWNERS' RISKS - Bankruptcy Proceedings." No assurances can be given that the real property subject to foreclosure and sale at a Judicial foreclosure sale for nonpayment of Special Taxes will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax instaBmeot- Special Tax Fund Pursuant to the Fiscal Agent Agreement, all Net Taxes received by the District will be deposited in the Special Tax Fund, which will be held by the Fiscal Agent on behalf of the District. Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit of the District and the owners of the Bonds. Pending disbursement, moneys in the Special Tax Fund will be subject to a lien in favor of the Bondowners and the District established under the Fiscal Agent Agreement Disbursements. Moneys in the Special Tax Fund will be disbursed as needed to pay the obligations of the District in the following priority. (1) The Administrative Expense Account of the Special Tax Fund; (ii) The Interest Account of the Special Tax Fund; (ill) The Principal Account of the Special Tax Fund; (iv) The Redemption Account of the Special Tax Fund; (v) The Reserve Account of the Special Tax Fund; (vi) The Rebate Fund; and (vii) The Surplus Fund. investment Moneys in the Special Tax Fund will be invested and deposited by the Authorized District Representative as described in "Investment of Moneys in Funds" below. Any loss resulting from such Authorized Investments shall be credited or charged to the Fund, Account or Subaccount from which such investment was made, and any investment earnings on a Fund, Account or Subaccount shall be applied as follows: (i) Investment earnings on amounts on deposit in the Acquisition and Construction Fund, the Reserve Account, and the Rebate Fund and each Account therein shall be deposited in those respective Funds and Accounts, and (ii) all other investment earnings shall be deposited in the Acquisition and Construction Fund until the balance therein equals zero and thereafter shall be deposited in the Interest Account of the Special Tax Fund. In addition to proceeds of Bonds deposited therein, the Fiscal Agent shall transfer from the Special Tax Fund to the Administrative Expense Account of the Special Tax Fund from time to time amounts necessary to make timely payment of Administrative Expenses upon the written direction of the District. The total amount transferred from the Special Tax Fund to the Administrative Expense Account in any Bond Year shall not exceed $25,000 (with such amount escalating at a compounded rate of 2% per Bond Year beginning with the Bond Year commencing September 2, 2001) until such time as there has been deposited to the Interest Account and the Principal Account an amount, together with any amounts already on deposit therein, sufficient to pay the principal of and interest on all Bonds due in such Bond Year. Moneys in the Administrative Expense Account of the Special Tax Fund may be invested in any Authorized Investments as directed by an Authorized District Representative. -17-