Resolution No. 4484 - Laserfiche WebLink

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Section 2. Fund. 2.1. The Special Assessment Bond Fund (the "Fund"), is hereby created. It shall contain a General Account and a Reserve Account. After deduction of the Administrative Increment, and except as provided in Section 3 and Section 5, the City shall deposit all Assessments into the General Account. As long as any Bonds remain issued and outstanding, money in the General Account shall be used solely for the purposes listed below, in the following order of priority: 2.1.1. To pay any Debt Service on Bonds which was not paid when due~ 2.1.2. To pay scheduled Debt Service on Bonds~ 2.1.3. To restore the balance in the Reserve Account to an amount equal to the Reserve Requirement~ 2.1.4. To redeem Bond principal (and pay any associated interest and premiums) prior to maturity. Amounts in excess of the requirements described in Sections 2.1.1 through 2.1.3 (to the greatest integral multiple of $5,000) shall be used to redeem Bonds in accordance with Bond redemption provisions. 2.2. Earnings on amounts in the General Account shall be credited to the General Account. Any amounts remaining in the Fund after all Bonds have been paid shall be the property of the City. Section 3. Reserve Account. 3.1. Upon issuance of the Bonds, the City shall deposit into the Reserve Account an amount of Bond proceeds such that the balance in the Reserve Account is at least equal to the Reserve Requirement for the Bonds. The City shall maintain the balance in the Reserve Account from transfers under Section 5 of this Resolution. 3.2. Moneys required to be maintained in the Reserve Account shall be used only to pay principal of and interest on the Bonds, and only in the event that the balance in the General Account is insufficient. However, amounts in the Reserve Account which exceed the Reserve Requirement may be transferred to the General Account. 3.3. Earnings on the Reserve Account shall be credited to the General Account. Section 4. Pledge of Available Sewer Revenues 4. 1. The City hereby pledges the Available Sewer Revenues and the proceeds of revenue obligations described in Section 4.3 to pay the Bonds. Available Sewer Revenues shall be used to pay Bonds only if amounts in the Fund are insufficient. The pledge of the Available Sewer Revenues shall be on a parity with all present and future obligations which are issued to finance the River Road/Santa Clara Sewer Project and for which Available Sewer Revenues are pledged. The pledge of the Available Sewer Revenues shall be subordinate to all other Page 3 - Resolution J :\HWR \CITIES\EUGENE\SAB96\SAB96RES.DOC