08-08-1989 Meeting - Laserfiche WebLink

Browse Search

s • INTER-OFFICE MEMORANDUM T0: Jerry Bramlett, President, Richard Matthews, Vice President Claude Graves, Secretary Mike Wadsworth, Member Robert T. Herrera, General Manager From: Jeff Litchfield, Director of Finance Date: August 8, 1989 Subject: Capitalized Interest Series II is the only series that had capitalized interest. Section 4.01 of the AMENDED AND RESTATED RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF X4,800,000 CONTRACT REVENUE BONDS, SERIES II 1988 AND AUTHORIZING AN AGREEMENT WITH THE PAYING AGENT/REGISTRAR reads: 4.01. Deposit into the Bond Fund. X336,000 of the proceeds of the sale of the Bonds, representing capitalized interest, shall be deposited into the Hond Fund. Section 7.03.(b) of the same document reads: 7.03. Bond Fund. There shall be deposited into the Bond Fund: (b) On or before the 25th day of December, 1990, and on or before the 25th day of each month thereafter, an amount which is not less than one-twelfth (1/12) of the principal of the Bonds maturing on the next December 1; provided, however, such deposits shall be _ reduced by any amount already on deposit in the Hond Fund that is, by virtue of this Resolution, to be applied to the payment of debt service on the Bonds. Amounts in the Hond Fund shall be used to pay the principal of, premium, if any, and interest on, the Bonds -- _and any Additional Honds, as such principal matures and such interest becomes due. In no event shall any amount in excess of the amounts stated above be placed in the Bond Fund for the payment of the principal of, premium, if any or interest on the Bonds and Additional Honds, if any, and any amount so placed may be withdrawn by the Authority and replaced in the Revenue Fund. Interpretation - The second sentence in the above paragraph allows us to utilize the amounts in the Bond Fund (capitalized interest and interest earnings) to pay principal and interest on the bonds.