1994-05-17 Resolution 91 - Laserfiche WebLink

Home Browse Search

terms of the Trust Agreement (except money or securities held in accounts to pay for Bonds called for redemption te • to with respect to which irrevocable instructions to redeem have been given to the Trustee, and except for money or held in trust for the purpose paying arbitrage rebate to the federal government, if any), including without limitation the money held in the Reserve Fund and other trust funds established under the Trust Agreement. The lease rentals under the Lease which constitute Pledged Funds consist of the "Century Center Portion" of the total rentals payable under the Lease. The Century Center Portion of the total rentals means the rentals payable for the Century Center Complex and improvements thereto, including the real estate upon which the Century Center Complex is located. The Century Center Complex is a civic, exhibition and convention center located in downtown South Bend, Indiana. Reserve Fund A "South Bend Redevelopment Authority Lease Rental Revenue Bonds of 1994 Reserve Fund" (the "Reserve Fund ") is established under the Trust Agreement and is to be maintained in an amount at least equal to the Reserve Fund Requirement (as hereinafter defined). The Reserve Fund may be applied solely F df�� a purpose for of paying the principal of and interest on the Bonds if any deficiencies occur in the Sinking of such purpose. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS —TRUST AGREEMENT--Operation Funds and Accounts." The Reserve Fund Requirement means the lesser of (i) the maximum annual debt service on the Bonds, (ii) 125 `Yo of the average annual debt service on the Bonds, or (iii) 10 % of the principal amount of the Bonds. The Authority will satisfy the Reserve Fund Requirement by depositing $ of the proceeds from the sale of the Bonds into the Reserve Fund. Lease • Under the terms of the Lease, the Commission has agreed to make semi - annual lease rental payments directly to the Trustee in an amount sufficient to pay the principal of, and interest on, the Bonds. Such lease rentals are payable from special ad valorem property taxes to be levied on all taxable property in the Redevelopment the lease rentals to the extent other funds District. The Commission is obligated to make the annual tax levy to pay of the Commission set aside for such purpose are insufficient to pay the lease rentals. The Commission intends to pay such lease rentals from certain revenues generated from the operation of the certain facilities subject to the Lease and. surplus tax increment revenues received from the South Bend Central Development Area, to the extent such funds and revenues are available. The amount of such revenues which are set aside as of each July 31 to pay lease rentals under the Lease, and the amount held in the Reserve Fund, will reduce the amount of taxes levied each year to pay those lease rentals. The obligatory levy is not subject to Indiana C herein- The limitations. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS -- LEASE" in Appendix The lease rental payments will not commence until the later of. (i) the completion of the financed improvements to the Century Center Complex, or (ii) January 28, 1996. Prior to the commencement of the lease rental payments with respect to the Century Center Complex, but no later than August 1, 1995, interest due on the Bonds will be payable from capitalized interest, which is deposited in the Bond Interest Account established under the Trust Agreement. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS - -TRUST AGREEMENT- - Operation of Funds and Accounts" in Appendix C herein. In the event the improvements at the Century Center Complex are not completed and ready for occupancy by January 28, 1996, sufficient revenues may not be available to pay the principal of and interest on the Bonds from and after February 1, 1996. Furthermore, in the event of delayed billing, collection, or distribution of property taxes, sufficient funds may not be available to the Commission to make lease rental payments when due. See "Procedures for Property Assessment, Tax Levy and Collection, and Tax Abatement. • -7-