96-045 RES - Laserfiche WebLink

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Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds o~,.~e Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencemenE of the collection of revenues from the Ice Arena. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) the "Gross Revenues" (hereinafter defined) of the Icc Arena, but only at such times and in such amounts as may be required, when combined with other monies available in the Debt Service Account for such purposes, to pay the principal of and interest on the Bonds, when due; (b) all collections of any taxes hereafter levied for the payment of the Bonds and interest thereon; (c) all funds remaining in the Capital Account after completion of the Ice Arena and payment of the costs thereof; (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 tho Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds. As in this Resolution, "Gross Revenues" means all revenue derived by the City, from whatever source, from its operation of the Ice Arena. 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 (5%) of the "Sale Proceeds" of the Bonds (being the "issue price" of the Bonds less accrued interest). To this effect, any proceeds of the Bonds and any sums from time to time held in the CapiEal Account or Debt Service Account in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. 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 ~uaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of ].986, as amended (the "Code"). 14. 105% Debt Service Coverage. It is hereby determined and reasonably anticipated that the estimated collections of Gross Revenues from the Ice Arena and the other 324502.1 ! 0