Resolution - #04-10-321 - 10/26/2004

Home

14. Delivery; Applicat!on of Proceeds: The Bonds when so prepared and executed shall be delivered by the Administrator to thePurchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Capital Improvement Crossover Refunding Bonds of 2004 Fund" (the "Fund") to be administered and maintained by the Administrator as a bookkeeping account separate and apart from all other fUnds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. Thero shall be maintained in the Fund separate accounts, to be designated the "Escrow Account" 'and "Debt Service Account", respectively. (a) Escrow Account. The City will create an Escrow Account which shall be maintained as an escrow account with U.S. Bank National Association (the "Escrow Agent") in St. Paul, Minnesota, which is a suitable financial institution within or without the State whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500,000. $ in Bond proceeds shall be deposited with the Escrow Agent and applied to fund the Escrow Account. $ in Bond proceeds, together with all investment earnings thereon plus other available municipal funds (estimated to be $ ) required to adequately fund the Escrow Account for the purposes set forth herein, are hereby pledged and appropriated and shall be credited to the Escrow Account. The Escrow Account shall be invested in securities maturing or callable at the option of the holder on such dates and beating interest at such rates as shali bemquired to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the accrued interest on each outstanding Prior Bond to its maturity or to the date on which it is called for redemption as herein provided and to pay the principal amount of each Prior Bond at maturity or on the date on which it has been called for redemption and to pay any premium required for redemption on such date. The moneys in the Escrow Account shall be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in aCCOrdance with an Escrow Agreement (the "Escrow Agreement") by and between the City, the EDA and the Escrow Agent. A form of the Escrow Agreement is on file in the office of the Administrator. Any moneys remitted to the City upon termination of the Escrow Agreement shall be depOsited in the Debt Service Account. (b) Debt Service Acco .unt. There.are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (i) ail accrued interest received upon delivery of the Bonds; (ii) any collections of ali taxes herein or hereafter levied for the payment of the Bonds and interest thereon; (iii) after February 1, 2005, any unexpended moneys in the Public Facility Lease Revenue Bond Fund created by the Indenture; and (iv) all investment earnings on funds held in the Debt,Service Account; and (v) 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 Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of 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. 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 ]700675vl 15