Common use of Sources of Payment Clause in Contracts

Sources of Payment. Prior to the issuance of the first series of Bonds, the City agrees to levy the Special Taxes on Developed Property at 100% of the Assigned Special Tax rate pursuant to, and as defined in, the Rate and Method. Such Special Taxes levied and collected prior to the issuance of the Bonds that are not required to pay Administrative Expenses (as defined in the Rate and Method), including any prepayment of Special Taxes prior to the issuance of Bonds, shall be referred to as “Available Special Taxes” and shall be deposited in a fund or account of the City (the “CFD No. 2024 1 Project Account”). Funds may be disbursed from the CFD No. 2024 1 Project Account in the following priority: (i) First, to pay or reimburse the Sewer Capacity Charges obligation, PFDIF obligation and Park DIF obligation of the Development Project, as determined by the City; and (ii) Second, to pay the Purchase Price of the Improvement. Following the issuance of Bonds, the City shall levy Special Taxes to meet the Special Tax Requirement in the Rate and Method, provided, however, Special Taxes shall not then be levied to pay for eligible development impact fees and the acquisition or construction of eligible facilities. The Purchase Price or any increment thereof for the Improvement shall be payable to the Developer from (a) those proceeds of the sale of each series of Bonds deposited in the acquisition account (“Acquisition Account”) of the project fund (the “Project Fund”) established pursuant to the indenture or fiscal agent agreement for the Bonds (the “Indenture”) and (b) funds in the CFD No. 2024 1 Project Account, if any, pursuant to the priority set forth above. The funds deposited in the Project Fund and the CFD No. 2024 1 Project Account shall be referred to as “Eligible Improvement Proceeds.” The Eligible Improvement Proceeds available from the sale of Bonds shall be the amount in excess of (i) all costs of formation of CFD No. 2024-1 and all costs of issuance of such Bonds, (ii) deposits of accrued and capitalized interest to the redemption fund, (iii) deposits of amounts equal to the Development Project’s Sewer Capacity Charges obligation, Park DIF obligation and the PFDIF obligation to the Acquisition Account, respectively, of the Project Fund and (iv) the initial deposit to the reserve fund Upon the issuance of Bonds, any funds then remaining in the CFD No. 2024 1 Project Account shall be transferred to the applicable accounts of the Project Fund.