No. 2805 authorizing the issuance of revenue bonds of the South Bend redevelopment district for the purpose of raising money for redevelopment/economic development in the CDA

Home Browse Search

All money in each of the funds described herein above shall be held in trust for the benefit of the holders of the Bonds and shall be applied, used and withdrawn only for the purposes authorized in this Section 4. Such proceeds shall be deposited with a legally qualified depository or depositories for funds of the City as now provided by law and shall be segregated and kept separate and apart from all other funds of the City and may be invested as permitted by law. Interest earned in each fund established under this Resolution shall be credited thereto, except that the amount of funds in the Reserve Fund shall not exceed the Debt Service Reserve Requirement, and any such excess shall be deposited into the Bond Principal and Interest Fund. SECTION 5. Proceeds received from the sale of the Bonds shall be deposited as follows: a. All accrued interest received at the time of the delivery of the Bonds, if any, plus such additional amount as the Commission shall determine with the advice of its financial advisor to be used for capitalized interest (to be set forth in a. certificate of the Controller prior to the issuance of the Bonds) shall be placed in the Bond Principal and Interest Fund; and b. For the Bonds, an amount equal to the Debt Service Reserve Requirement shall be placed in the Reserve Fund unless the Commission determines to satisfy the Debt Service Requirement with a surety bond or other credit facility as provided by Section 4(b) hereof, and Cr� C. The remaining proceeds from the sale of the Bonds shall be deposited in a special fund to be designated as the City of South Bend, Indiana, Redevelopment District Capital Fund" (the "Capital Fund "). SECTION 6. Proceeds of the Capital Fund shall be deposited with a legally qualified depository or depositories for funds of the City as now provided by law and shall be segregated and kept separate and apart from all other funds of the City and may be invested as permitted by law. The proceeds in the Capital Fund shall be expended only for the purpose of paying the cost of the redevelopment and economic development in or serving the Area, including without limitation the Project, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment and economic development in or serving the Area, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses related to completing the Project or the issuance of the Bonds, capitalized interest for the Bonds and a debt service reserve for the Bonds as provided herein, together with the expenses in connection with or on account of the issuance of the Bonds for the retirement thereof. Any balance or balances remaining in the Capital Fund after the completion of the Project in or serving the Area which are not required to meet unpaid obligations incurred in connection with the completion of the Project in or serving the Area and issuance of the Bonds shall be deposited into the Bond Principal and Interest Fund and used solely for the purposes of that fund. BDDB01 6406657v2 -16-