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APR 4 1984 toa 56 PAGES: 6, the sinking funds are maintained at their bank. In other words, the unused proceeds from the issue will remain in their bank during the time the process is going on. OMB Director Jeff Barton has raised an objection to that. It is the Administration's position, however, that if that would affect the deal, so to speak, then we should proceed with the bank's desire under the commitment. Attorney Brandenburg, therefore, recommended we agree to the bank's desire in this limited instance. Attorney Brandenburg explained that it was Director Barton's concern that once those funds go into that account, it becomes a non-competitive interest rate situation. He emphasized that the entire cost of this assessment will be paid by the group of developers of the project, and it should not be the concern of the County if the developers are in agreement on the amount of interest returned on those reserves. Chairman Scurlock agreed that if it is a case of whether we fly or not, then let's go with it. Attorney Brandenburg eased Director Barton's concerns on the capability of the computer system to handle the payments by explaining that the bank does not want a reserve fund. They want a sinking fund set up into which all payments on the assessments will be deposited on a yearly basis. They do not care whether the payments go through a County account immediately before being sent to the bank, but they do not want the payments to be held in a County account for 6 -months, invested during the interim, and then sent to the bank with the proviso that the sinking fund is then swept clean every six months to pay off bonds. Attorney Brandenburg also informed the Board that the the properties will have a lien on them for 10 equal, annual installments. The bank will require that $205,000 of the bonds be retired each year, and the County will coordinate 54