Ordinance 2607-02 - Laserfiche WebLink

Section 18. Refunding Plan and Procedures. (a) Refunding Account. There is hereby authorized to be created in the Revenue Bond Fund account, known as the "Refunding Account," which account is to be drawn upon for the sole purpose of paying the principal of, premium and interest on the Refunded Bonds until their date of redemption and of paying costs related to the refunding of the Refunded Bonds. The proceeds of sale of the Bonds (exclusive of accrued interest thereon, which shall be paid into the 2002 Debt Service Subaccount and used to pay interest on the Bonds on January 1, 2003) shall be credited to the Refunding Account. The City also may transfer money from its Revenue Bond Fund, Reserve Account and/or Revenue Fund to provide an amount sufficient to carry out the Refunding Plan. Money in the Refunding Account shall be used immediately upon receipt to defease the Refunded Bonds as authorized by Ordinance No. 1891-92 and to pay costs of issuance. The City shall defease all of the outstanding 1992 Bonds (including the Refunded Bonds) and discharge such obligations by transferring funds to the Bond Registrar on the date of closing and delivery of the Bonds in such amounts and at such times which, together with any necessary beginning cash balance, will provide for the payment on July 1, 2002, of: (i) interest on the 1992 Bonds due and payable on July 1, 2002; and (ii) the principal of the 1992 Bonds maturing on July 1, 2002, and the redemption price of the 1992 Bonds (101% of the principal amount thereof) maturing after July 1, 2002. (b) Implementation of Refunding Plan. The Finance Director is hereby authorized to negotiate and execute an Escrow Agreement with the Bond Registrar, acting in the -42- P.\CMW\CMW5BE 02/05/21