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Distribution), next following the receipt by the City of such revenues, the City <br />shall set apart and pay all of such revenues into the Bond Principal and Interest <br />Account to be used to pay the interest on and principal of the Bonds; provided, <br />however, that, no deposit shall be made into such account from the May <br />Distribution in any year when the balance therein is sufficient to pay the interest <br />due on the Bonds on the interest payment date next following such distribution <br />and the principal and interest due on the Bonds on the principal payment date next <br />following such distribution, and no deposit shall be made into such account from <br />the November Distribution of any year when the balance therein is sufficient to <br />pay the principal and interest due on the Bonds on the principal payment date next <br />following such distribution. <br />(b) Reserve Account. The county economic development <br />income tax revenues of the City shall next be set apart and paid into the Reserve <br />Account and used to make deposits into the Bond Principal and Interest Account <br />in the event of any deficiency at any time in such account, or for the purpose of <br />paying the interest on or principal of or redemption premiums, if any, on the <br />Bonds in the event no other money is lawfully available therefore, or to make the <br />final payment of interest on or principal of the Bonds; provided that no deposit <br />shall be made into the Reserve Account so long as there shall be on deposit <br />therein a sum equal to the least of (i) the maximum annual debt service on the <br />Bonds, or (ii) one and one-quarter (1-1/4) times the average annual debt service <br />on the Bonds, or (iii) ten percent (10%) of the proceeds of the Bonds, within the <br />meaning of Section 148(d) of the Internal Revenue Code of 1986, as amended <br />(the "Code") (the "Debt Service Reserve Requirement"). Any portion of the Debt <br />Service of Reserve Requirement with respect to the Bonds shall be deemed to be <br />satisfied if there is on deposit in the Reserve Account any surety bond, insurance <br />policy, guaranty, letter of credit, or other credit facility (the "Guaranty") in any <br />amount equal to such portion, the issuer of which credit facility is rated at least <br />"AAA" by Standard & Poor's Ratings Group or "Aaa" by Moody's Investor <br />Service. <br />(c) Excess Account. Any remaining county economic <br />development income tax revenues of the City shall be deemed excess funds and <br />shall be deposited in the Excess Account for appropriation and use as permitted <br />by the Act. In the event of any deficiency at any time in the Bond Principal and <br />Interest Account for the purposes of paying the interest on or principal of the <br />Bonds or such additional bonds as authorized herein, funds may be withdrawn <br />from the Excess Account for deposit into the Bond Principal and Interest Account <br />in the amount of such deficiency. <br />All funds in such accounts shall be segregated and kept separate and apart from <br />all other funds of the City and shall be deposited in lawful depositories of the City and <br />continuously held and secured or invested as provided by law. Interest earned in each such <br />account shall be credited to such account except that the amount of funds in the Reserve Account <br />BDDBOI 4539793v1 -21- <br />