HomeMy WebLinkAboutReso. 1980 - 057 - Establishing bond reserve fund - Castle Court Assessment District no. 1979-5 • 411
RESOLUTION NO.
RESOLUTION ESTABLISHING BOND RESERVE FUND
CASTLE COURT ASSESSMENT DISTRICT NO. 1979-5
The City Council of the City of Redding resolves :
1. There is hereby created a special fund to be designated
Special Reserve Fund, Castle Court Assessment District No. 1979-5 ,
City of Redding, Shasta County, California.
2. Out of the proceeds of the sale of improvement bonds to
represent unpaid assessments in Castle Court Assessment District No.
1979-2, there shall be deposited in the special reserve fund the amount
designated for this purpose in the report required by Section 10204 of
the Streets and Highways Code and approved by this City Council, reduced
by an amount which bears the same ratio to the amount set forth in the
report as the amount of assessments paid in cash bears to the total
amount of assessments.
3. During the term of the improvement bonds , the money in the
special reserve fund shall be available for transfer into the redemption
fund for the bonds pursuant to Section 8808 of the Streets and Highways
Code. The amount so advanced shall be reimbursed to the special reserve
fund from the proceeds of redemption or sale of the parcel for which
payment of delinquent assessment installments was made from the special
reserve fund.
4. If any assessment is prepaid prior to the final maturity of
the bonds, the amount of principal which the assessee is required to
prepay shall be reduced by an amount which is in the same ratio to the
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original amount of the special reserve fund, together with accrued
interest, as the original amount of the prepaid assessment bears to
the total amount of assessments originally levied in Castle Court
Assessment District No. 1979-5. The reduction in the amount of
principal prepaid shall be compensated for by a transfer from the
special reserve fund to the redemption fund for the bonds of a like
amount.
5. In order to prevent the reserve fund from exceeding the
reserve limitations set by federal statute and regulation, the City
Treasurer is hereby authorized and directed to make transfers of accrued
interest from the reserve fund to the bond redemption fund from time to
time, and to establish prorata credits against annual installments of
assessment principal and interest in a like amount in the year following
the year of transfer.
6. When the amount in the special reserve fund equals or exceeds
the amount required to retire the remaining unmatured bonds (whether by
advance retirement or otherwise) , the amount of the special reserve fund
shall be transferred to the redemption fund for the bonds, and the
remaining installments of principal and interest not yet due from
assessed property owners shall be cancelled without payment.
I HEREBY CERTIFY that the foregoing resolution was duly and
regularly adopted by the City Council of the City of Redding, Shasta
County, California, at a regular meeting thereof, held on the 17th day
of March, 1980, by the following vote, to wit:
AYES : Councilmembers Kirkpatrick, Pugh, and Fulton
NOES: Councilmembers None
ABSENT: Councilmembers Gard and Demsher
MILDRED L. BRAYTON, City Clerk,
City of Redding, Shasta County,
CaI ' fornia