Laserfiche WebLink
<br />-25- <br />Trustee in the following respective special accounts, which are hereby established in the Debt <br />Service Fund, and in the following order of priority: <br /> <br />(a) Interest Account. On or before the fourth (4th) Business Day preceding each <br />Interest Payment Date, the Successor Agency shall withdraw from the Redevelopment <br />Obligation Retirement Fund and transfer to the Trustee, for deposit in the Interest Account <br />an amount which when added to the amount contained in the Interest Account on that <br />date, will be equal to the aggregate amount of the interest becoming due and payable on <br />the Outstanding Bonds and any Parity Debt on such Interest Payment Date. No such <br />transfer and deposit need be made to the Interest Account if the amount contained therein <br />is at least equal to the interest to become due on the next succeeding Interest Payment <br />Date upon all of the Outstanding Bonds and any Parity Debt. All moneys in the Interest <br />Account shall be used and withdrawn by the Trustee solely for the purpose of paying the <br />interest on the Bonds and any Parity Debt as it shall become due and payable. <br /> <br />(b) Principal Account. On or before the fourth (4th) Business Day preceding the <br />date on which principal on the Bonds and any Parity Debt becomes due and payable at <br />maturity, the Successor Agency shall withdraw from the Redevelopment Obligation <br />Retirement Fund and transfer to the Trustee for deposit in the Principal Account an amount <br />which, when added to the amount then contained in the Principal Account, will be equal <br />to the principal becoming due and payable on the Outstanding Bonds and any Parity Debt <br />on such date. All moneys in the Principal Account shall be used and withdrawn by the <br />Trustee solely for the purpose of paying the principal of the Bonds and any Parity Debt as <br />it shall become due and payable. <br /> <br />(c) Sinking Account. No later than the fourth (4th) Business Day preceding each <br />March 1 or September 1, as applicable, on which any Outstanding Term Bonds are subject <br />to mandatory redemption or otherwise for purchase pursuant to the provisions of a <br />Supplemental Indenture, the Successor Agency shall withdraw from the Redevelopment <br />Obligation Retirement Fund and transfer to the Trustee for deposit in the Sinking Account <br />an amount which, when added to the amount then contained in the Sinking Account, will <br />be equal to the aggregate principal amount of the Term Bonds required to be redeemed <br />on such March 1 or September 1, as applicable, pursuant to Section 2.03(b). All moneys <br />on deposit in the Sinking Account shall be used and withdrawn by the Trustee for the sole <br />purpose of paying the principal of the Term Bonds as it shall become due and payable <br />upon redemption or purchase pursuant to Section 2.03(b). <br /> <br /> (d) Reserve Account. <br /> <br />(i) Establishment of Reserve Account and 2018 Reserve Subaccount. There <br />is hereby established in the Debt Service Fund a separate account known as the “Reserve <br />Account,” and a “2018 Reserve Subaccount” therein for the 2018 Bonds. The 2018 <br />Reserve Subaccount shall serve solely as security for payments payable by the Successor <br />Agency with respect to the 2018 Bonds. <br /> <br />The Reserve Requirement for the 2018 Bonds shall be satisfied by the delivery of <br />the 2018 Reserve Policy by the 2018 Reserve Insurer to the Trustee on the Closing Date. <br />On the Closing Date, the Trustee shall credit the 2018 Reserve Policy to the 2018 Reserve <br />Subaccount to satisfy the Reserve Requirement with respect to the 2018 Bonds as of such <br />date. The Trustee shall draw on the 2018 Reserve Policy and shall transfer such amounts <br />to the Interest Account and the Principal Account, in such order, to the extent required to <br />451