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or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 15. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the City Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 16. Fund and Accounts. There is hereby created a special fund of the City designated the "$820,000 General Obligation Water Revenue Bonds, Series 1998B Fund" (the "Fund") to be held and administered by the City as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall continue to be maintained in the manner herein specified until all of the Bonds herein authorized and all other bonds payable from said Fund and the interest thereon have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Capital Account" and "Debt Service Account", respectively. (i) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds, less such amounts thereof as shall be deposited into the Debt Service Account pursuant to paragraph 16(ii) below. From the Capital Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let, the costs of issuing the Bonds and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) the net revenues of the City's municipal water system and utility (as hereinafter described, the "Net Revenues"), but only in amounts and at such times as will be sufficient (together with other amounts in the Debt Service Account) to pay, when due, the principal of and interest on the Bonds; (b) all accrued interest received upon delivery of the Bonds and $ of additional proceeds of the Bonds, all to be used to pay the interest first coming due thereon; (c) all collections of any taxes hereafter levied for the payment of the Bonds and interest thereon; (d) all investment earnings on funds held in the Debt Service Account; and (e) any and all other moneys which are properly available and are appropriated by the Council to the Debt Service Account.. The Debt Service Account shall be used solely to pay the principal of and interest on the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. As used in this Resolution, the term Net Revenues means the gross revenues derived by the City from the operation of its municipal water system and utility, including all charges for service, use, availability, and connection to said system, and all monies received from the sale of any facilities or equipment of said system or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the system. If any payment of principal or interest on the Bonds shall become due when there are not sufficient funds in the Debt Service Account to pay the same, the City Finance Director shall pay such principal or 998543.1 17