No. 2012 authorizing issuance of bonds for purpose of providing funds for refunding outstanding bonds and financing redevelopment projects in SBCAA (No. 1A) and paying incidental expenses in connection therewith and on account of issuance of bonds

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other provisions and priorities set forth in this resolution and shall be applied, used and p p pp , withdrawn in accordance with this Section 9 and in the following order of priority: (a) Transfers to 2003 Bond Principal and Interest Account. On January 15, 2004 and on July 15, 2004 and each January 15 and July 15 thereafter, there shall be deposited in the 2003 Bond Principal and Interest Account an amount of money from the account or fund previously established by the Commission to receive TIF Revenues (the "Allocation Fund "), to the extent of available funds in said Allocation Fund, which together with any money contained in the 2003 Bond Principal and Interest Account, is sufficient to pay the principal of and interest on Tax Increment Bonds coming due and payable on the following February 1 and August 1, as applicable. No such deposit need be made into the 2003 Bond Principal and Interest Account if the amount contained therein is sufficient to pay such amounts so coming due and payable on the following February 1 and August 1, as applicable. To the extent that the amount then contained in the 2003 Bond Principal and Interest Account and available for such purpose is less than such amounts coming due and payable on the following February 1 and August 1, as applicable, there shall be deposited on each January 15 and July 15, commencing January 15, 2004, in the 2003 Bond Principal and Interest Account an amount of money from said Allocation Fund, to the extent of available funds in said Allocation Fund, equal to the amount of such deficiency. All money in the 2003 Bond Principal and Interest Account shall be used and withdrawn solely for the purpose of paying the interest on and the principal of the Tax Increment Bonds as it shall become due and payable to the extent it is required therefor, including accrued interest on any such obligations purchased or redeemed prior to maturity. (b) 2003 Reserve Account. (i) On the date of issuance of the 2003 Bonds, there shall be deposited to the 2003 Reserve Account from the proceeds of the sale of the 2003 Bonds an amount determined by the financial advisor, if any, as of the time the 2003 Bonds are sold, to be an appropriate reserve to facilitate the marketing of the 2003 Bonds, which amount shall not exceed the lesser of (i) ten percent (10 %) of the proceeds of the 2003 Bonds, (ii) the maximum annual debt service on the 2003 Bonds, and (iii) 125% of the average annual debt service on the 2003 Bonds (the "Reserve Requirement ") within the meaning of the Section 148(d) of the Internal Revenue Code of 1986, as amended (the "Code "). On January 15, 2004, and each July 15 and January 15 thereafter, there shall be set aside in the 2003 Reserve Account from the Allocation Fund, after making any required deposit into the 2003 Bond Principal and Interest Account, any amount necessary to build or restore the balance of the 2003 -13-