RES 14-39 - Laserfiche WebLink

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appropriated to the Debt Set-vice Fund (i) capitalized interest financed from Bond proceeds, if any; A any amount over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03; and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds,if ally. 4.02. Construction Fund. The proceeds of the Bonds, less the appropriations made in Section 4,01, together with any other funds appropriated during the construction of the Project financed by the Bonds,will be deposited in a separate construction fund (the "Construction Fund") maintained by the City to be used solely to defray expenses of the Project and the payment of principal and .interest on the Bonds prior to the completion and payment of all costs of the Project. When the Project is completed and the cost thereof paid, the Construction Fund is to be closed and any balance therein is to be deposited in the Debt Service Fund. 4.01 Cij�: Covenants. The City Council covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, they will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the sewer plant and system as a public utility and convenience free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the sewer system account as hereinabove provided, and will make no expenditures from such account except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Debt Service Fund as a separate account in the Sewer Fund and will cause money to he credited thereto from time to time, out of net revenues from the sewer plant and system in sums sufficient to pay principal of and interest on the Bonds when due. (c) The City will keep and maintain proper and adequate books of records and account,,; separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the sewer plant and system and which will be open to inspection and copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to an bondholders upon request. (d) The City Council will cause persons handling revenues of the sewer plant and system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the sewer plant and system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) The Council will keep the sewer plant and system insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for Eke plants, to protect the holders, from time to time, of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. 445655v4 JSB ELI 85-27 6