1990-03-07 Minutes - Laserfiche WebLink

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improvement Project Sinking Fund. The Trustee shall deposit into the Sinking Fund from each rental payment received an amount equal to the lesser of i) all of such rental payment received; . or ii) an amount which when added to the amount in the Sinking Fund equals the sum of the unpaid interest on the Bonds due on, before, or within 45 days .after the rental. payment becomes due, and the unpaid principal on the Bonds due within 8 months from the date the rental payment becomes due. Any portion of a rental payment remaining after such deposit, shall be deposited in the Operation and Reserve Fund. The Trustee shall, from time to time, withdraw sufficient money from the Sinking Fund to pay principal and interest on the Bonds when due. South Bend Redevelopment Authority South Bend Central Development Area Public Improvement Protect Operation and Reserve Fund. This fund is established to pay necessary incidental expenses of the Authority (e.g. audits, appraisals, and reports); to pay principal, interest, and redemption premiums upon redemption of the Bonds, if any; and to contribute money to the Sinking Fund if it should ever be deficient. Funds Related to Arbitrage Rebate. Pursuant to the Authority's instructions, the Trustee shall establish funds necessary to enable the Authority to satisfy the Arbitrage Rebate requirements of Section 148(f) of the Code and the Arbitrage Regulations. The Trustee shall invest all funds, or so much as is practicable in Qualified Securities as permitted by law. Whenever the amounts contained in the Funds are sufficient to redeem all outstanding Bonds, the Trustee shall apply the amounts in the Funds to the redemption of the Bonds. Funds and Accounts of the Commission Per Resolution No. 915 The Commission has established certain • funds and accounts for the payment of the rentals owed by the Commission as set forth in Resolution No. 915, summarized as follows. (A copy of Resolution No. 915 is exhibited in Appendix V of this Official Statement). Redevelopment District Bond Fund. This Fund will consist of a Principal and Interest Account and such other accounts as the Commission may establish. South Bend Central Development Area Public Improvement Project Principal and Interest Account. The Commission shall levy in each calendar year, beginning in the year prior to the first calendar year in which the Commission will pay lease rentals, a special tax on all taxable property in the District, in the total amount sufficient, together with all other funds in the Principal and Interest Account deposited in the 12 months prior to August 1 of such calendar year, to pay all lease rental payments payable in the 12-month period beginning on July 1 of the following calendar year. Such taxes shall be deposited in the Principal and Interest Account. Risk Factors To Be Considered By Investors Prospective investors in the Bonds should be aware of the following risk factors: 1. The Bonds. are payable solely from lease. rental payments from the Commission to the Authority and other Pledged Funds as defined in the Trust Agreement. The Authority has no taxing power. Under the Lease as will be amended, the lease payments will not begin until the later of January 31, 1993 or completion of the Improvements. The • Improvements are expected to be completed by December, 1991. In the event the Improvements are not completed, the lease payments would not be made. -8-