5.1 ERMUSR 05-11-2021 - Laserfiche WebLink

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EL185-69-713323.v1 7 Minneapolis, Minnesota, which will be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Funds and Accounts; Security; Payment. 4.01. Debt Service Fund. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds, and to provide adequate and specific security for the Purchaser and holders from time to time of the Bonds, there is hereby created a special fund to be designated the General Obligation Water Utility Revenue Bonds, Series 2021C Debt Service Fund (the “Debt Service Fund”). The Debt Service Fund shall be administered and maintained by the Finance Manager as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the Commission. The Debt Service Fund will be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. The Commission will continue to maintain and operate its Water Utility Fund, to which will be credited all gross revenues of the water utility system (the “Utility System”), and out of which will be paid all normal and reasonable expenses of current operations of such Utility System. Any balances therein are deemed net revenues (the “Net Revenues”) and will be transferred, from time to time, to the Debt Service Fund hereby created, which fund will be used only to pay principal of and interest on the Bonds, and any other bonds similarly authorized. There will be deposited in the Debt Service Fund from time to time sufficient amounts to pay principal of and interest on the Bonds when due, and the Finance Manager must report any current or anticipated deficiency in the Debt Service Fund to the City Council. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Manager is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Net Revenues of the Water Utility Fund and taxes when collected. There is also appropriated to the Debt Service Fund (i) capitalized interest financed from the Bond proceeds, if any; (ii) 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 2.03; and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds, if any; (iv) all investment earnings on amounts in the Debt Service Fund; and (v) any other funds appropriated for the payment of principal or interest on the Bonds. 4.02. Construction Fund. The Commission hereby creates the General Obligation Water Utility Revenue Bonds, Series 2021C Construction Fund (the “Construction Fund”) to be administered and maintained by the Finance Manager as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City and the Commission. Proceeds of the Bonds, less the appropriations made in Section 4.01 hereof, together with any other funds appropriated during the construction of the Utility Improvements financed by the Bonds will be deposited in the Construction Fund to be used solely to defray expenses of the Utility Improvements. Any balance remaining in the Construction Fund, after the Utility Improvements are completed and the cost thereof have been paid, may be used as provided in Minnesota Statutes, section 475.65, under the direction of the City Council. Thereafter, the Construction Fund is to be closed and any balance remaining therein is to be deposited in the Debt Service Fund. 204