HomeMy WebLinkAboutReso. 1980 - 121 - Establishing bond reserve fund - Lake Blvd Subdivision Unit 4 Assessment District no. 1980-4 • i
RESOLUTION NO.
RESOLUTION ESTABLISHING BOND RESERVE FUND
Lake Boulevard Subdivision Unit 4 Assessment
District No. 1980-4
The City Council of the City of Redding resolves:
1. There is hereby created a special fund to be desig-
nated Special Reserve Fund, Lake Boulevard Subdivision Unit 4 Assess-
ment District No. 1980-4 , City of Redding, Shasta County, California..
2 . Out of the proceeds of the sale of improvement bonds
to represent unpaid assessments in Lake Boulevard Subdivision Unit 4
Assessment District No. 1980-4, there shall be deposited in the special
reserve fund the amount designated for this purpose in the report re-
quired by Section 10204 of the Streets and Highways Code and approved
by this City Council.
3 . During the term of the improvement bonds, the money in
the special reserve fund shall be available for transfer into the re-
demption 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 original amount of the special reserve fund, together with accrued
interest, as the original amount of the prepaid assessment bears to
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the total amount of assessments originally levied in Lake Boulevard
Subdivision Unit 4 Assessment District No. 1980-4 . The reduction in
the amount of principal prepaid shall be compensated for by a trans-
fer 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 2nd
day of June, 1980.
AYES: Councilmembers Demsher, Fulton, Kirkpatrick, and Pugh
NOES : Councilmembers None
ABSENT: Councilmembers Gard
MILDRED L. BRAYTON, City Clerk,
City of Redding, Shasta County,
Ca1\' fornia