90-010 RES - Laserfiche WebLink

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. . . Section 3. Acquisition Account. A special fund designated "The General Obligation Taxable Tax Increment Bonds, Series 1990A Fund" (the Fund) is hereby established separate from other funds of the Issuer. A separate account is hereby established within the Fund for the Project which shall be called the "Tax Increment Financing District No.7 Acquisition Account." The proceeds of the sale of the Bonds, other than the portions attributed to accrued interest, unused discount and capitalized interest, shall be credited to the Tax Increment Financing District No. 7 Acquisition Account. From such account shall be paid all costs and expenses related to the purchase of certain property that is the site of the Project; provided, that the moneys in such account may also be used to the extent necessary to pay interest or principal due on the Bonds prior to the commencement of the collection of tax increments and taxes levied or to be levied for the purpose of paying the principal and interest due upon the Bonds. When the total cost of the Project has been paid, such account shall be discontinued and any money remaining in such account shall be transferred to the debt service account authorized in section 4.01 hereof. section 4. Security; Payment. 4.01. Debt Service Account. A separate account within the Fund is hereby established, designated the "Series 1990A Tax Increment Bond Debt Service Account." All tax increments (Tax Increments) from the District are hereby irrevocably appropriated and pledged to the Series 1990A Tax Increment Bond Debt Service Account to the extent necessary to pay principal of and interest on the Bonds. There is also pledged to such account (a) all accrued interest received from the purchaser of the Bonds; (b) capitalized interest in the amount of to pay interest due on the Bonds on or before February 1, 1991; (c) all taxes, if any, levied for payment of the Bonds; (d) all funds remaining in the Tax Increment Financing District No. 7 Acquisition Account after acquisition of the Project and payment of the costs thereof; and (e) any unused discount. Such separate account shall be used to pay principal and interest on the Bonds. If moneys in such separate account should at any time be insufficient to pay principal and interest due on the Bonds, such amount shall be paid from the general fund of the Issuer, which shall be reimbursed therefor when sufficient money becomes available in such separate account. 4.02. Tax Pledqe. The estimated collection of Tax Increments are expected to produce sums at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The Issuer recognizes and affirms the pledge of the full faith and credit of the Issuer to the payment of the Bonds. In the event that the Tax Increments and the other funds pledged to the payment 13.