RES 88015 - Laserfiche WebLink

the total amount of principal of and interest on the Bonds payable with res ect to such ~'ear. The failure of a property owner to pay an annual assessment installment ~'~i not result ~n an increase in assessment installments against other property in the Assessment District. In the event of a delin uency in the payment of any installment of an assessment, the Finance Director will transferc~om the Reserve Fund, to the extent of available funds therein, to the Redemption Fund the amount necessary, in addition to the moneys on deposit therein,. to pay the next maturing installment of principal and interest on the Bonds. In the event a superior court foreclosure action is instituted to enforce a delinquent assessment installment and the City urchases such property, the Reserve Fund will be used, to the extent of available funds, to ma~ advances to the Redemption Fund for payment of the delinquent amount of the assessment on the pro erty and future assessment installments, including ~nterest thereon, until such property is reso~ by the City or redeemed. (See "Covenant to Commence Superior Court Foreclosure" and "Resetwe Fund" herein.) The 1915 Act requires that a parcel be sold for the delinquent assessment installment amount only (plus costs and penalties) and not for the entire outstanding unpaid assessment. There is no assurance that in the event of a foreclosure sale for a delinquent assessment installment (or installments) any bid will be received for such property or that any bid received or resale price will be sufficient to pay such delinquent installment (plus costs and penalties). Pursuant to the provisions of the 1915 Act, the City has determined not to obligate itself to advance any available funds from the Ci treasu to cover any deficiency which may occur in the Redemption Fund by reason of the ~ilure ~Y~ property owner to ay an annual assessment installment. This determination by the City would not revent the ~ty, in its sole discretion, from so advancing such funds. (See "No Pledge of City FPurnds" herein.) Reserve Fund A Reserve Fund in the amount of $310,000, five percent (5%) of the princi al amount of the Bonds, will be established from the proceeds of the sale of the Bonds. ~e Resetwe Fund shall ~constitute a trust fund for the benefit of the holders of the Bonds. The Resetwe Fund shall be maintained, used, transferred, reimbursed, and liquidated as follows: (a) Whenever there are insufficient funds in the Redemption Fund to pay the next maturing installment of principal of or interest on the Bonds an amount necessary to make up such deficiency will be advanced from the Reserv~ Fund. The amounts so advanced will be reimbursed from the proceeds of redemption or sale of the parcels for which payment of delinquent installments of assessments and interest thereon or property taxes has been made from the Resetwe Fund. (b) If any assessment is prepaid prior to the final maturity of the Bonds, the amount of principal of the assessment to be prepaid will be reduced by the percentage which the original amount deposited in the Reserve Fund bears to the total amount of the original assessment on all land in the Assessment District. The reduction in the amount of principal prepaid will be compensated for by a transfer of a like amount from the Reserve Fund to the Redemption Fund. (c) Income earned from the investment of the Resetwe Fund will be transferred to the Investment Earnings Fund and disposed of as described hereinabove under the heading 'T]-tE BONDS - Investment Earnings." (d) Whenever the balance in the Reserve Fund is sufficient to retire all remaining outstanding Bonds, whether by advance retirement or otherwise, the balance of the Resetwe Fund will be transferred to the Redemption Fund, collection of