5.2.B. SR 01-22-2008 - Laserfiche WebLink

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Bonds. Any Bond proceeds remaining in the Payment Account after all costs of issuance have been paid or provided for shall be transferred to the Debt Service Account. (d) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there shall be credited: (i) the net revenues of the System not otherwise pledged and applied to the payment of other obligations of the City, in an amount, together with other funds which may herein or hereafter from time to time be irrevocably appropriated to the account sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Bonds; (ii) accrued interest received upon delivery of the Bonds; (iii) any collections of all taxes which may hereafter be levied in the event the net revenues of the System and other funds herein pledged to the payment of the principal and interest on the Bonds are insufficient therefor; (iv) any balance remitted to the City upon the termination of the Escrow Agreement; (v) any balance remaining after the Call Date, in the Redemption Fund; (vi) any balance remaining after the Crossover Date, in the General Obligation Water Revenue Bonds, Series 2001 A Fund created by the Prior 2001 Resolution; (vii) all investment earnings on funds in the Debt Service Account; and (viii) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The moneys in the Debt Service Account shall be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 17. Sufficiency of Net Revenues; Coverage Test. It is hereby found, determined and declared that the net revenues of the System are sufficient to pay, together with other sums pledged to the payment of the Outstanding Bonds, one hundred five percent of the principal of and interest on the Bonds and the Outstanding Bonds and the net revenues of the System are hereby pledged on a parity lien with the Outstanding Bonds to the payment of the Bonds, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Bonds. Nothing contained herein shall be deemed to preclude the City from 2116001v1 1 7