HomeMy WebLinkAboutReso. 1980 - 201 - Establishing bond reserve fund - Mountain Lakes Industrial Park Unit no. 3 Assessment District no. 1980-2 110
RESOLUTION NO. Z562 - -`47- 6 / 410
RESOLUTION ESTABLISHING BOND RESERVE FUND
Mountain Lakes Industrial Park Unit No. 3
Assessment District No. 1980-2
The City Council of the City of Redding resolves :
1. There is hereby created a special fund to be designated
Special Reserve Fund, Mountain Lakes Industrial Park Unit No. 3
Assessment District No. 1980-2, City of Redding, Shasta County,
California.
2 . Out of the proceeds of the sale of improvement bonds
to represent unpaid assessments in Mountain Lakes Industrial Park
Unit No. 3 Assessment District No. 1980-2 , 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 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
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the 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 Moun-
tain Lakes Industrial Park Unit No. 3 Assessment District No. 1980-2 .
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 pro rata 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 the 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 September, 1980.
AYES : Councilmembers Demsher, Fulton, Gard, Kirkpatrick, and Pugh
NOES: Councilmembers None
ABSENT: Councilmembers None
MILDRED L. BRAYTON, City Clerk, City of
Re, ing, Shasta Cou ty, California
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