RES 86533 - Laserfiche WebLink

E~jLtD~. ESTABLISHMENT OF SPECIAL FUNDS. For administerin~ the proceeds of the sale of bonds and payment of interest and principal on the bonds, there are hereby established three funds to be known as the improvement fund, the redemption fund and the special reserve fund, respectively, for Assessment District No. 1988-7, North Pleasanton Improvement District No. 2. Section Bol. IMPROVEMENT FUND. Except as provided in Section 5oZ, proceeds of sale of the bonds, together with all amounts paid on the assessments prior to bond issuance, shall be deposited in the improvement fund to be maintained by the Director of Finance. Disbursements from the improvement fund shall be made by the Director of Finance in accordance with the budget of estimated costs and expenses set forth in the en~ineer~s report heretofore approved by the City Council, which report and budget are subject to modification by the City Council from time to time as prescribed by the Act. Section 5.2. REDEMPTION FUND. The redemption fund shall be maintained by the Director of Finance. All payments of principal and interest installments on the assessments, together with penalties, if any, shall be deposited in the redemption fund, which shall be a trust fund for the benefit of the bondholders. Payment of the bonds at maturity, or at redemption prior to maturity, and all interest on the bonds shall be made from the redemption fund. Section 5.~. SPECIAL RESERVE FUND. The special reserve fund shall be maintained by the Director of Finance.