No. 0747 authorizing the issuance of tax increment revenue bonds for the purpose of raising money for property acquisition and redevelopment in the SBCDA

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The Commission shall approve and confirm the findings and estimates set forth in the above - described certificate in any supplemental resolution authorizing the issuance of the Parity Bonds. SECTION 7. Proceeds received from the sale of the Bonds shall be deposited as follows: 1. All accrued interest and unused discount received at the time of the delivery of the Bonds and any premium received at the time of delivery of the Bonds shall be placed in the Bond Principal and Interest Account; 2. An amount equal to the lesser of Five Hundred Thirty Five Thousand Dollars ($535,000) or the Debt Service Reserve Requirement shall be deposited in the Reserve Account; and 3. The remaining proceeds from the sale of the Bonds shall be deposited in a special fund to be desig- -17- the Tax Increment estimated to be received in the succeeding years, adjusted as provided below, is, estimated to be equal to at least 130% of the annual principal and interest requirements for any future year (during the term of the Bonds) with respect to the Bonds and the Parity Bonds. In estimating the Tax Increment to be received in any future year, the Controller, independent certified public accountant, or independent financial consultant, as the case may be, shall base his calculation on assessed valuation actually assessed or to be assessed as of the assessment date immediately preceding the issuance of the Parity Bonds; provided, however (a) the Certifier shall adjust such assessed values for the future effects of the reduction of real property tax abatements granted to property owners in the Allocation Area, and (b) in the case of improvements, or portions thereof, to real property under construction, if the Certifier reasonably believes that the improvement or portion thereof will be substantially completed at the time of the issuance of the Parity Bonds, the Certifier shall base his calculation on the assessed valuation estimated to be assessed as of the assessment date immediately subsequent to the issuance of the Parity Bonds. No increase in the Tax Increment to be received in any future year shall be assumed that results from projected inflation in property values or projected increases in property tax rates. The Commission shall approve and confirm the findings and estimates set forth in the above - described certificate in any supplemental resolution authorizing the issuance of the Parity Bonds. SECTION 7. Proceeds received from the sale of the Bonds shall be deposited as follows: 1. All accrued interest and unused discount received at the time of the delivery of the Bonds and any premium received at the time of delivery of the Bonds shall be placed in the Bond Principal and Interest Account; 2. An amount equal to the lesser of Five Hundred Thirty Five Thousand Dollars ($535,000) or the Debt Service Reserve Requirement shall be deposited in the Reserve Account; and 3. The remaining proceeds from the sale of the Bonds shall be deposited in a special fund to be desig- -17-