HomeMy WebLinkAboutReso. 1981 - 258 - Establishing bond reserve fund - Henderson Road Assessment District 1981-1RESOLUTION NO. ��� •� S Y
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RESOLUTION ESTABLISHING BOND RESERVE FUND
HENDERSON ROAD ASSESSMENT DISTRICT 1981-1
The City Council of the City of Redding resolves:
1. There is hereby created a special fund to be
designated Special Reserve Fund, Henderson Road Assessment
District 1981-1, City of Redding, Shasta County,
California.
2. Out of the proceeds of the sale of
improvement bonds to represent unpaid assessments in
Henderson Road Assessment District 1981-1, 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.
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4. If any assessment is prepaid prior to the
final maturity of the bonds, the amount of principal which
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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
the total amount of assessments originally levied in
Henderson Road Assessment District 1981-1. 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 assessed property owners shall be cancelled
without payment.
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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 November, 1981.
AYES: Councilmembers Demsher, Fulton, Gard, Kirkpatrick, and
NOES: Councilmembers None
ABSENT: Councilmembers None
ETHEL A. RICHTER, City Clerk, City of
Redding, Shasta County, California
By C 1. 11 7711--
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