BIL 092 Draft 01 2012-2014 - Laserfiche WebLink

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SECTION 4. Special Fund. There is hereby created a special fund to be known as "Improvement District No. 19 - Kona Ocean View Properties Subdivision," into which the funds for the costs of the Improvements, as identified in Section 3 hereof, and all money collected by the Director of Finance for assessments levied by this ordinance shall be placed. Amounts so placed in the special fund shall be applied to pay or reimburse the County for (i) costs of the authorized Improvements as provided in Section 6 hereof, (ii) payments of the principal of and interest on the Improvement District Bonds and other costs relating to the Improvement District Bonds (including costs of funding a reserve fund for the Improvement District Bonds, to the extent applicable), and (iii) administrative expenses of the County with respect to the Improvement District Bonds and the Improvement District. Amounts which are not applied or reasonably required to be reserved for such purposes shall be applied in accordance with the provisions of Chapter 12, Hawai`i County Code. SECTION 5. Payment of Assessments; Installments. A property owner's assessment may be paid to the Director of Finance in full, without additional charges, at any time within 30 days after the date of the last publication of the ordinance. Pursuant to Section 12-33, Hawaii County Code 1983 (2005 Edition, as Amended), property owners who do not pay their assessments in full within such period will be deemed to have elected to pay their assessments in installments as hereinafter provided. In case of an election made or deemed to have been made (as aforesaid) to pay an assessment in installments, such assessment shall be due and must be paid to the Director of Finance over the thirty-five (35) year term of the Improvement District Bond financing (through USDA/RD) for the Improvement District: (a) initially, in four (4) quarterly (three-month) installments of interest for the first year; and (b) subsequently, in one hundred thirty-six (136) quarterly installments of principal and interest for the remainder of the thirty-five (35) tenn of the Improvement District Bond financing. The rate of interest shall be the same as the rate of interest on the Improvement District Bonds. The first installment shall be due and payable three (3) months from the date of the bond closing, plus or minus up to sixteen (16) days as determined by the Director of Finance. The assessment shall be amortized to create approximately equal installments of principal and interest throughout the last thirty four (34) years of the thirty five (35) year Improvement District Bonds loan on an annual basis. Property owners will be permitted to prepay the unpaid balance of their assessments in full, plus a 3% premium on the amount to be prepaid (unless waived by the Director of Finance) and interest at the rate on the Improvement District Bonds until they can be redeemed with the assessment prepayment. The Director of Finance may alter the assessment interest rate, amount, frequency, or term to allow for adjustments if the Improvement District Bonds are refinanced, to make up for projected shortfalls, or for any reason to benefit or strengthen the special fund. The Director of Finance may implement a three-month prepayment penalty waived period upon thirty (30) days' written notice to property owners if the assessments are increased or otherwise modified to the detriment of the property owners. 3