No. 0819 authorizing issuance of bonds on parity with COSB redevelopment district tax increment revenue bonds of 1985 & 1986 for purpose of raising money for property acquisition and redevelopment in SBCAA

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All money in each of the accounts in the Allocation Fund shall be held in trust for the benefit of the holders of the Bonds and shall be applied, used and withdrawn only for the purposes authorized in this Section 5. The proceeds of the Allocation Fund shall be deposited with a legally g y 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 in Qualified Investments, as such term is defined below. (a) Bond Principal and Interest Account. There shall be set aside within the Allocation Fund and deposited in the Bond Principal and Interest Account from the Tax Increment Revenue Account an amount of money which, together with any money contained there- in, is equal to the aggregate amount of the interest becoming due that calendar year payable on all out- standing Bonds and the aggregate principal amount of outstanding 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 Bonds during that calen- dar year and the aggregate principal amount of the outstanding 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 All money in the Bond Principal and Interest Account shall be used and withdrawn solely for the purpose of paying the interest on and the principal of the Bonds as it shall become due and payable to the extent it is required therefor (including accrued interest on any Bonds purchased or redeemed prior to maturity). (b) Reserve Account. There shall be set aside from the Allocation Fund and deposited 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 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 Bonds (the "Debt Service Reserve Requirement "). -19-