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No. 1118 authorizing issuance of bonds on parity with COSB redevelopment district tax increment revenue bonds of 1985, 1986, 1988 for the purpose of raising money for redevelopment in the SBCAA
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No. 1118 authorizing issuance of bonds on parity with COSB redevelopment district tax increment revenue bonds of 1985, 1986, 1988 for the purpose of raising money for redevelopment in the SBCAA
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outstanding Bonds becoming due and payable on <br />the next principal payment date. No deposit <br />need be made into the Bond Principal and <br />Interest Account if the amount contained <br />therein is at least equal to the aggregate <br />amount of interest becoming due and payable on <br />all outstanding Bonds during that calendar year <br />and the aggregate principal amount of the <br />outstanding Bonds maturing by their terms on <br />the next succeeding principal payment date. <br />All money in the Bond Principal and Interest <br />Account shall be used and withdrawn solely for <br />the purpose of paying the interest on and the <br />principal of the Bonds as it shall become due <br />and payable to the extent it is required <br />therefore (including accrued interest on any <br />Bonds purchased or redeemed prior to maturity) . <br />(b) Reserve Account. There shall be set aside <br />from the Allocation Fund and deposited in the <br />Reserve Account from the Tax Increment Revenue <br />Account an amount of money that shall be <br />required to maintain the Reserve Account in the <br />rt full amount of the Debt Service Reserve <br />f Requirement (as defined below). No deposit <br />need be made in the Reserve Account so long as <br />there shall be on deposit therein a sum equal <br />to the lesser of fifteen percent (15 %) of the <br />original issuance price of the Bonds or the <br />average annual principal and interest payments <br />(which shall be calculated as payments due on <br />August 1 and the following February 1) on the <br />outstanding Bonds (the "Debt Service Reserve <br />Requirement "). <br />All money in the Reserve Account shall be used <br />and withdrawn by the City solely for the <br />purpose of making deposits into the Bond <br />Principal and Interest Account, in the event <br />of any deficiency at any time in such account, <br />or for the purpose of paying the interest on <br />or principal of or redemption premiums, if any, <br />on the Bonds in the event that no other money <br />is lawfully available therefor, except that so <br />long as there is no default hereunder any <br />amount in the Reserve Account in excess of the <br />Debt Service Reserve Requirement shall be <br />withdrawn from the Reserve Account and <br />deposited in the General Account. Money in <br />the Reserve Account shall also be available to <br />make the final payments of interest and <br />principal on the Bonds. <br />21 <br />
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