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<br />14 <br />Manner of Redemption. Whenever any 2014 Bonds or portions thereof are to be <br />selected for redemption by lot, the Trustee will make the selection, in such manner as the <br />Trustee deems appropriate. <br /> <br />Additional Bonds <br /> <br />Parity Debt. The Indenture defines “Parity Debt” as any loan, bonds, notes, advances <br />or indebtedness payable from Tax Revenues on a parity with the 2014 Bonds as authorized by <br />the Indenture. <br /> <br />The Indenture authorizes the issuance of Parity Debt to refund the 2014 Bonds. The <br />Indenture does not allow the Successor Agency to issue obligations on a senior basis to refund <br />the 2014 Bonds. <br /> <br />With respect to any such refunding, annual debt service on such Parity Debt must be <br />lower than annual debt service on the obligations being refunded during every year such <br />obligations would otherwise be outstanding. <br /> <br />Subordinate Debt. The Indenture permits the Successor Agency to issue and sell <br />Subordinate Debt. Such Subordinate Debt may be payable from any assets or property of the <br />Successor Agency, including Tax Revenues on a subordinate basis to the payment of debt <br />service on the 2014 Bonds. <br /> <br />THE DISSOLUTION ACT <br /> <br />The Dissolution Act requires the County Auditor-Controller to determine the amount of <br />property taxes that would have been allocated to the Former Agency (pursuant to subdivision <br />(b) of Section 16 of Article XVI of the State Constitution) had the Former Agency not been <br />dissolved pursuant to the operation of AB 1X 26, using current assessed values on the last <br />equalized roll on August 20, and to deposit that amount in the Redevelopment Property Tax <br />Trust Fund for the Successor Agency established and held by the County Auditor-Controller <br />pursuant to the Dissolution Act. <br /> <br />The Dissolution Act provides that any bonds authorized thereunder to be issued by the <br />Successor Agency will be considered indebtedness incurred by the Former Agency, with the <br />same lien priority and legal effect as if the bonds had been issued prior to effective date of AB <br />1X 26, in full conformity with the applicable provisions of the Redevelopment Law that existed <br />prior to that date, and will be included in the Successor Agency’s Recognized Obligation <br />Payment Schedule (see “SECURITY FOR THE 2014 BONDS – Recognized Obligation <br />Payment Schedules”). <br /> <br />The Dissolution Act further provides that bonds authorized by the Dissolution Act to be <br />issued by the Successor Agency will be secured by a pledge of, and lien on, and will be repaid <br />from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund, and <br />that property tax revenues pledged to any bonds authorized to be issued by the Successor <br />Agency under the Dissolution Act, including the 2014 Bonds, are taxes allocated to the <br />Successor Agency pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and <br />Section 16 of Article XVI of the State Constitution. As described above under “INTRODUCTION <br />– The Redevelopment Plan and The Project Areas – Project Areas,” the County Auditor- <br />Controller has established the Joint Project RPTTF separate from the Redevelopment Property <br />Tax Trust Fund established for the Project Areas, and amounts on deposit in the Join Project