No. 1054 regarding issuance of tax increment revenue refunding bonds

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Principal and Interest Account, is equal to the aggregate amount of the interest becoming due that calendar year payable on all outstanding Tax Increment Bonds and the aggregate principal amount of outstanding Tax Increment Bonds becoming due and payable on the next principal payment date. No deposit need be made into the Bond Principal and Interest Account if the amount contained therein is at least equal to the aggregate amount of interest becoming due and payable on all outstanding Tax Increment Bonds during that calendar year and the aggregate principal amount of the outstanding Tax Increment Bonds maturing by their terms on the next succeeding principal payment date. All money in the Bond Principal and Interest Account shall be used and withdrawn solely for the purpose of paying the interest on and the principal of the Tax Increment Bonds as it shall become due and payable to the extent it is required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) Reserve Account. There shall be set aside on the date the Bonds are sold, from the proceeds of the sale of the Bonds, and deposited in the Reserve Account, an amount of money equal to the lesser of (i) ten percent (10 %) of the proceeds of the Bonds, (ii) the maximum annual debt service on the Bonds, and (iii) 125% of the average annual debt service on the Bonds, subject to reduction for amounts deposited in the Reserve Account on such date from other sources; provided, the amount of such deposit shall be reduced to the extent that the balance in the Reserve Account would after such deposit exceed the Reserve Requirement described below. On each January 15, there shall be set aside from the Allocation Fund in the Reserve Account from the Tax Increment Revenue Account an amount of money that shall be required to maintain the Reserve Account in the full amount of the Debt Service Reserve Requirement (as defined below) . No deposit need be made in the Reserve Account so long as there shall be on deposit therein a sum equal to the lesser of fifteen percent (15 %) of the original issuance price of the Tax Increment Bonds or the average annual principal and interest payments (which shall be calculated as payments due on August 1 and the following February 1) on the outstanding Tax Increment Bonds (the "Debt Service Reserve Requirement ") . All money in the Reserve Account shall be used and withdrawn solely for the purpose of making deposits into the Bond Principal and Interest Account, in the event of any deficiency at any time in such account, or for the purpose of paying the interest on or principal of or redemption premiums, if any, on the Tax Increment Bonds in the event that no other money is lawfully available therefor, except that so long as there is no default hereunder any amount in the Reserve -13-