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Section 5.2. REDEMPTION FUND. The redemption fund shall be <br />maintained by the Director of Finance. All payments of principal <br />and interest installments on the assessments, together with <br />penalties, if any, shall be deposited in the redemption fund, <br />which shall be a trust fund for the benefit of the bondholders. <br />Payment of the bonds at maturity, or at redemption before <br />maturity, and all interest on the bonds shall be made from the <br />redemption fund. <br /> <br /> Section 5.3. SPECIAL RESERVE FUND. The special reserve <br />fund shall be maintained by the Director of Finance. There shall <br />be deposited into the special reserve fund the amount of <br />$480,131.00 (the "Reserve Requirement") from the proceeds of the <br />sale of bonds. <br /> <br /> A. During the term of the bonds, the amount in the special <br />reserve fund shall be available for transfer into the redemption <br />fund in accordance with Section 8808 of the Streets and Highways <br />Code. The amount so advanced shall be reimbursed to the special <br />reserve fund from the proceeds of redemption or sale of the <br />parcel for which payment of delinquent assessment installments <br />was made from the special reserve fund. <br /> <br /> B. If any assessment is prepaid before final maturity of <br />the bonds, the amount of principal which the assessee is required <br />to prepay shall be reduced by an amount which is in the same <br />ratio to the original amount of the special reserve fund as the <br />original amount of the prepaid assessment bears to the total <br />amount of assessments originally levied in Assessment District <br /> <br /> <br />