Common use of Balloon Payments Clause in Contracts

Balloon Payments. The City will not issue any TIF Bonds which qualify as Balloon Indebtedness, as defined in the following sentence. Balloon Indebtedness shall mean any series of TIF Bonds, twenty-five percent (25%) or more of the original principal of which is to be paid during one fiscal year; provided such term excludes: (a) a series of TIF Bonds maturing within one year of its date of issue, or (b) a series of TIF Bonds which is payable over its term in approximately level amounts (i.e., not varying by more than 10% from highest to lowest) of principal and interest in each fiscal year.

Appears in 2 contracts

Sources: Intergovernmental Agreement, Intergovernmental Agreement