6.3.B. SR 06-16-2008 - Laserfiche WebLink

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7. Execution. The Notes shall be executed on behalf of the City by the signatures of its Mayor and Administrator; the sale of the City has been intentionally omitted as permitted by law. In the event of disability or resignation or other absence of any such officer, the Note may be signed by the manual signature of that officer who may act on behalf of such absent or disabled officer. In case any such officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. 8. Delivery; Application of Proceeds. The Note when so prepared and executed shall be delivered by the Finance Director to the purchaser thereof prior to disbursements pursuant to the Project Loan Agreement, and the purchaser shall not be obliged to see to the proper application thereof. 9. Fund and Accounts. There is hereby created a separate fund of the City designated the "Transportation Fund" (the "Fund"). The Fund shall be maintained in the manner specified herein until the Note and interest thereon have been fully paid. There shall be maintained in the Fund, the following accounts: (a) An "MPFA Construction Account", to which shall be credited all proceeds received from the sale of the Note. The Note shall be the only source of moneys credited to the MPFA Construction Account. It is recognized that the sale proceeds of the Note are received in reimbursement for costs expended on the Project or in direct payment of such costs, and that accordingly the moneys need not be placed in the MPFA Construction Account upon receipt but may be applied immediately to reimburse the source from which the expenditure was made. The moneys in the MPFA Construction Account shall be used solely for the purpose of paying for the cost of constructing the Project, including all costs enumerated in Minnesota Statutes, Section 475.65, provided that such moneys shall only be expended for costs and expenses which are permitted under the Project Loan Agreement. The MPFA prohibits the use of proceeds of the Note to reimburse costs initially paid from proceeds of other obligations of the City unless otherwise specifically approved. Upon completion of the Project and the payment of the costs thereof, any surplus shall be transferred to the MPFA Debt Service Account. (b) An "MPFA Debt Service Account", to which there shall be irrevocably appropriated, pledged and credited: (1) upon receipt from the Commissioner of Finance of the State of Minnesota, the annual amount of money needed for payment of principal and interest due each year on the Note from moneys allotted or to be allotted to the City from its account in the Municipal State-Aid Street Fund; (2) any collections of taxes which may hereafter be levied for payment of the principal of and interest on the Note; (3) all investment earnings on moneys held in the MPFA Debt Service Account; (4) any amounts transferred from the MPFA Construction Account; and (5) any other moneys which are properly available and are appropriated by the City Council to the MPFA Debt Service Account. The moneys in the MPFA Debt Service Account shall be used only to pay or prepay the principal of and interest on the Note and to pay any rebate due to the United States with respect to the MPFA Bonds in connection with the Note. 2170696v1 8