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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Reserve Account to an amount equal to the Reserve Requirement. (ii) If the Commission is advised by the financial advisor that the 2003 Reserve Account should be funded, and as an alternative to funding the Reserve Requirement from proceeds of the sale of the 2003 Bonds, the Commission has the option to fund the Reserve Requirement over a period of five (5) years as set forth below. There shall be transferred, on the last day of each calendar month, from the Allocation Fund and deposited to the 2003 Reserve Account equal amounts sufficient to accumulate the Reserve Requirement within five (5) years of the date of delivery of the 2003 Bonds, which amount shall constitute an appropriate reserve to facilitate the marketing of the 2003 Bonds, provided that such amount shall not exceed the Reserve Requirement. After this five (5) year period, the Commission shall maintain the balance in the 2003 Reserve Account in an amount equal to the Reserve Requirement. All money in the 2003 Reserve Account shall be used and withdrawn on any January 15 or July 15 solely for the purpose of making deposits into the 2003 Bond Principal and Interest Account, in the event of and to the extent of any deficiency in the 2003 Bond Principal and Interest Account with respect to the payments then due on the Tax Increment Bonds, or to make the final payments on such bonds when the 2003 Reserve Account, together with other funds available for such purpose, is sufficient to make all remaining payments thereon to final maturity. Any amount in the 2003 Reserve Account in excess of the Reserve Requirement shall be withdrawn from time to time, and at least as frequently as annually, and deposited in the 2003 Bond Principal and Interest Account. (c) The remaining amounts in the Allocation Fund (the "Excess Funds ") may be used for any purpose permitted by the Act. (d) As an alternative to holding the Reserve Requirement in the 2003 Reserve Account in cash funds, the Commission may purchase one or more surety bonds (the "Surety Bond') to meet the Reserve Requirement. In the event a draw is made against the Surety Bond, the Commission shall repay the amount of the draw and related expenses incurred by the issuer(s) of the Surety Bond (the "Insurer ") together with interest thereon at the rate specified in the Surety Bond. The repayment of the draw amount, related expenses and accrued interest (the "Policy Costs ") shall be paid from the funds that would have been set aside above to replenish the 2003 Reserve Account. Repayment of the Policy Costs shall commence in the first month following each draw, in an -14-