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Redevelopment Commission Agenda & Packet 04.24.25
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Redevelopment Commission Agenda & Packet 04.24.25
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Dept of Community Investment
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14 <br /> <br />collectively referred to herein as the “Parity Bonds”); and <br />(ii) a Principal and Interest Account (the “Principal and Interest Account”); and <br />(iii) a Debt Service Reserve Account (the “2025 Reserve Account”), if <br />determined by the President to be necessary; and <br />(iv) a General Account (the “General Account”). <br />On June 30, 2025, and each June 30 and December 30 thereafter, moneys in each respective <br />Tax Increment Revenue Account shall be set aside in the following accounts within each respective <br />Allocation Fund, in the following order of priority: (a) the respective Bond Principal and Interest <br />Account; (b) the respective 2025 Reserve Account (if any); and (c) the respective General Account. <br />(c) Bond Principal and Interest Accounts. There shall be set aside within each <br />respective Allocation Fund and deposited into each respective Bond Principal and Interest Account <br />from each respective Tax Increment Revenue Account, on a pro rata basis, an aggregate amount <br />equal to the principal of and interest due on the Parity Bonds for the twelve (12) month period <br />beginning on July 1, 2025, and each twelve (12) month period beginning on each July 1 thereafter <br />(the “Pledge Period”). No deposit need be made into the respective Bond Principal and Interest <br />Account if the amount contained therein is at least equal to the pro rata amount of principal and <br />interest due and payable with respect to the Parity Bonds during the remainder of the current Pledge <br />Period and for the Pledge Period next following. All money in each respective Bond Principal and <br />Interest Account shall be used and withdrawn solely for the purpose of paying, on a parity basis, <br />the interest on and the principal of the Parity Bonds as it shall become due and payable to the <br />extent it is required therefor (including accrued interest on any Parity Bonds purchased or <br />redeemed prior to maturity). <br />(d) 2025 Reserve Account. If at the time of the sale of the Bonds it is determined by <br />the President to establish a Reserve Account for the Bonds, then the President of the Commission <br />shall cause a 2025 Bond Reserve Account (the “2025 Reserve Account”) to be established in each <br />respective Allocation Fund. If each such 2025 Reserve Account is not fully funded at the time that <br />the Bonds are issued then, after making the required deposits into each respective Bond Principal <br />and Interest Account, there shall be set aside from each respective Allocation Fund and deposited <br />into each respective 2025 Reserve Account from the respective Allocation Fund an amount of <br />money that, in aggregate, shall be required to maintain the Reserve Account until the balance <br />therein equals but does not exceed the least of (i) the maximum annual debt service on the Bonds, <br />(ii) 125% of average annual debt service on the Bonds, or (iii) 10% of the proceeds of the Bonds <br />(the “Reserve Requirement”). The Reserve Requirement will be deposited into each respective <br />2025 Reserve Account, on a pro rata basis, at the election of the President with the advice of the <br />Commission’s municipal advisor, either (i) in a single payment, to be paid on the date of the <br />issuance of the Bonds, or (ii) in equal semi-annual installments, over a period not to exceed five <br />(5) years after the date of issuance of the Bonds, with the first installment due and payable on the <br />date of the issuance of the Bonds, and the remaining installments payable on each January 15 and <br />July 15 thereafter. <br />All money in each respective 2025 Reserve Account shall be used and withdrawn by the
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