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<br />55 <br />RISK FACTORS <br /> <br />The following information should be considered by prospective investors in evaluating <br />the 2014 Bonds. However, the following does not purport to be an exhaustive listing of risks and <br />other considerations which may be relevant to investing in the 2014 Bonds. In addition, the <br />order in which the following information is presented is not intended to reflect the relative <br />importance of any such risks. <br /> <br />The various legal opinions to be delivered concurrently with the issuance of the 2014 <br />Bonds will be qualified as to the enforceability of the various legal instruments by limitations <br />imposed by State and federal laws, rulings and decisions affecting remedies, and by <br />bankruptcy, reorganization or other laws of general application affecting the enforcement of <br />creditors’ rights, including equitable principles. <br /> <br />Recognized Obligation Payment Schedule <br /> <br />The Dissolution Act provides that only those payments listed in a Recognized Obligation <br />Payment Schedule may be made by a successor agency from the funds specified in the <br />Recognized Obligation Payment Schedule. Pursuant to Section 34177 of the Dissolution Act, <br />not less than 90-days prior to each January 2 and June 1, the Successor Agency shall submit to <br />the Oversight Board and the DOF, a Recognized Obligation Payment Schedule. For each <br />Semiannual Period, the Dissolution Act requires each successor agency to prepare and <br />approve, and submit to the successor agency’s oversight board and the DOF for approval, a <br />Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as <br />defined in the Dissolution Act) of the successor agency are listed, together with the source of <br />funds to be used to pay for each enforceable obligation. Consequently, Tax Revenues will not <br />be withdrawn from the Redevelopment Property Tax Trust Fund by the county auditor-controller <br />and remitted to the Successor Agency without a duly approved and effective Recognized <br />Obligation Payment Schedule to pay debt service on the 2014 Bonds and to pay other <br />enforceable obligations. See “SECURITY FOR THE 2014 BONDS – Recognized Obligation <br />Payment Schedule.” In the event the Successor Agency were to fail to file a Recognized <br />Obligation Payment Schedule with respect to a six-month period and, if applicable, the following <br />half of the calendar year, the availability of Tax Revenues to the Successor Agency could be <br />adversely affected for such period. See “SECURITY FOR THE 2014 BONDS - Recognized <br />Obligation Payment Schedules.” <br /> <br />Under the Redevelopment Property Tax Trust Fund distribution provisions of the <br />Dissolution Act, a county auditor-controller is to distribute funds for each six-month period in the <br />following order specified in Section 34183 of the Dissolution Act: <br /> <br />(i) first, subject to certain adjustments for subordinations to the extent <br />permitted under the Dissolution Act (if any, as described above under “SECURITY FOR <br />THE 2014 BONDS - Pass-Through Agreements” and “-Statutory Pass-Through <br />Agreements”) and no later than each January 2 and June 1, to each local agency and <br />school entity, to the extent applicable, amounts required for pass-through payments <br />such entity would have received under provisions of the Redevelopment Law, as those <br />provisions read on January 1, 2011, including negotiated pass-through agreements and <br />statutory pass-through obligations; <br /> <br />(ii) second, on each January 2 and June 1, to the successor agency for <br />payments listed in its Recognized Obligation Payment Schedule, with debt service