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<br />any) which are not used by the Escrow Agent to pay costs of <br />issuance of the Bonds are hereby irrevocably pledged and . <br />appropriated to the Escrow Account, together with all <br />investment earnings thereon. The Escrow Account shall be <br />invested in securities maturing or callable at the option of <br />the holder thereof on such dates and bearing interest at <br />such rates as shall be required to provide funds sufficient, <br />together with any cash or other funds retained in the Escrow <br />Account, to pay (1) when called for redemption on <br />~- 'February 1, 2001, the principal amount of each of the <br />Refunded Bonds and (2) the regularly-scheduled interest due <br />on the Bonds on or before February 1, 2001. The moneys in <br />the Escrow Account shall be used solely for the purposes <br />herein set forth and for no other purpose, except that any <br />surplus in the Escrow Account shall be remitted to the City, <br />all in accordance with the terms of the Escrow Agreement. <br />The City's share of such Other Funds, if any, ias may be <br />required to fully fund the Escrow Account as described above <br />is hereby appropriated for said purpose and the investment <br />and disbursement thereof provided in the Escrow Agreement <br />are hereby authorized and approved. <br /> <br />(ii) Debt Service Account. To the Debt Service <br />Account there are hereby pledged and irrevocably <br />appropriated and there shall be credited: (1) all accrued <br />interest received upon delivery of the Bonds which is not <br />then deposited into the Escrow Account; (2) all collections <br />of any ad valorem taxes hereafter levied by the City for the . <br />paYment of the Bonds; (3) special assessments levied by the <br />City for the Improvements, but only in such amounts as shall <br />be necessary, together with other monies in the Debt Service <br />Account and available for such purposes, to pay, when due, <br />the principal of and interest on the Bonds; (4) all <br />investment earnings on funds held in the Debt Service <br />Account; and (5) any amounts received by the City upon <br />termination of the Escrow Account. The foregoing funds are <br />hereby pledged to the Debt Service Account, but only in such <br />amounts and at such times as may be necessary, together with <br />other available funds therein (and the same shall be used <br />solely), to pay the principal of and interest on the Bonds, <br />when due. <br /> <br />No portion of the proceeds of the Bonds shall be used <br />directly or indirectly to acquire higher yielding investments or <br />to replace funds which were used directly or indirectly to <br />acquire higher yielding investments, except (1) for a reasonable <br />temporary period until such proceeds are needed for the purpose <br />for which the Bonds were issued and (2) in addition to the above <br />in an amount not greater than any applicable "minor portion" <br />which may be available for the Bonds. To this effect, any <br />proceeds of the Bonds and any sums from time to time held in the <br />Debt Service Account in excess of amounts which under <br />then-applicable federal arbitrage regulations may be invested . <br />without regard to yield shall not be invested at a yield in <br />excess of the applicable yield restrictions imposed by said <br /> <br />1079939.2 <br /> <br />20 <br />