Resolution - #04-12-373 - 12/14/2004

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14. Delivery; Application of Proceeds. The Certificates when so prepared and executed shall be delivered by the Administrator to the Purchaser upon receipt of the purchase and the Purchaser shall not be obliged to see to the proper application thereof. 15. }7tllld and Accounts. There is hereby created a special fund to be designated the "(ic~c~'al Obligation Equipment Certificates of Indebtedness, Series 2004B Fund" (the "Fund") to be administered and maintained by the Administrator as a bookkeeping account separate and :tpart fi'on] all other funds maintained in the official financial records of the City. The Fund shall be mai }atained in the manner herein specified until all of the Certificates and the interest thereon have bccn fi~lly paid. There shall be maintained in the Fund separate accounts, to be designated /he "(',~pital Account" and "Debt Service Account", respectively. (a) Capital Account. To the Capital Account there shall be credited the proceeds of lhc sale el'thc Certificates, less accrued interest received thereon. From the Capital Account lhcrc shall 1, e paid all costs and expenses of the acquisition of the Equipment including all costs incurrc~d and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. The mr)heys in thc Capital Account shall be used for no other purposes except as otherwise provided l~y I~w; provided that thc proceeds of the Certificates may also be used to the extent necessary to paty inlcrest on thc Certificates due prior to the anticipated date of commencement of the coll~:clion of taxes herein levied. (b) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (i) accrued interest received upon delivery of' thc Certificates; (ii) all taxes herein or hereafter levied for the payment of the ('<zrti fi cares and interest thereon; (iii) available City funds in the amount of $ ., deposited a~t closi~g, sufficient to pay interest due on the Certificates on or before June 15, 2005; (iv) all l'unds r~mlaining in tile Capital Account after the payment of all costs of the Equipment; (v) all investment earnings on funds held in the Debt Service Account; and (vi) any and all other monc:ys which are properly available and are appropriated by the governing body of the City to tl~c Debt Service Account, The Debt Service Account shall be used solely to pay the principal and interest of` the Certificates and any other General Obligation Equipment Certificates 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 Certificates shall be used directly or indirectly to z~cq [~ire higher yielding investments or to replace funds which were used directly or indirectly to acq u ire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Certificates were issued and (ii) in addition to tl~c: almve in an amount not greater than the lesser of five percent (5%) of the proceeds of the Cerli lieatcs or $100,000. To this effect, any proceeds of the Certificates and any sums from time to time held in thc Capital Account or Debt Service Account (or any other City account which will bc t,sed to pay principal or interest to become due on the certificates payable there from) in excess of amounts which under then applicable federal arbitrage regulations may be invested with(mt 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 ~t~ y applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulattions. Motley in the Fund shall not be invested in obligations or deposits issued by, gum'antc'ed by or insured by the United States or any agency or instrumentality thereof if and to