Agenda - Economic Development Authority - 05/24/2005

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ARTICLE FV BOND PROCEEDS; CONSTRUCTION FUND Section 4.01 D..eposit of Series 2005A Bond Proceeds. The Issuer shall deposit, or shall direct the purchaser or purchasers of the Series 2005A Bonds to deposit, the net proceeds of the sale of the Series 2005A Bonds (including accrued interest thereon, but excluding $ in costs of issuing the Bonds paid by the Issuer or by Northland Securities, Inc., on its behalf'in comaection with the closing thereon) as follows: (a) with the Trustee to the credit of the Reserve Fund the sum ors (b) with the Trustee to the credit of the Bond Fund the sum ors_ representing accrued and capitalized interest and unused discount On the Sei'ies 2005A Bonds wkich shall be used to pay a like moUnt of the interest frrst coming due on the Series 2005A Bond~; and with the Trustee to the credit of the Construction Fund the sum of ., being the balance of the net proceeds of the Series 2005A Bonds. Section 4.02 Establishment of Construction Fund. The Issuer hereby establishes a trust account with the Trustee designated the Construction Fund and there shall be deposited with the Trustee to the credit of the Construction Fund those proceeds of the Series 2005A Bonds described in Section 4.0 l (c). As provided in Section 4.05, Construction Per/od income and profit from the investment of moneys in the Construction Fund shall be credited to the Construction Fund. The Issuer has no obligation hereunder or under the Act to-deposit any moneys in the Construction Fund or apply moneys to Project Costs except proceeds of Bonds or f'~nds made available therefor by the City. The moneys in the Construction Fund shall be'held in trust by the Trustee and applied to the payment of the Project Costs in accordance with and subject to the Provisions. of this Article a~d the applicable provisions of the Lease, and pending such application shall be subject to a lien m~d charge in favor of the Holders of the Bonds issued and Outstanding under this Indenture and shall be held for the further security of such Holders until paid out as herein provided. In the event the moneys in the Bond Fund and in the Reserve Fund shall be insufficient on any [nterest i)ayment Date to pay principal of, premium (if any) or interest on the Bonds due on such date, the Trustee shall use any moneys then on deposit to the credit ofthe Construction Fund, to the extent needed, to pay such principal, premium and interest. Section 4.03 Project Costs Defined. For the purposes of this Article, the Project Costs shall include, without intending thereby to limit or restrict any proper defirdtion of such cost under any applicable laws or sound accountingp~actice, the Project Costs described in Section 3.3 of the Lease. Section 4.04 Payments from Construction Fund. Payments shall be made by the Trustee fkom the Construction Fund to the City or its order, as the case may be, 'upon receipt of the statements set forth in Section 3.3 of the Lease and the Draw Request attached to the Lease as 176.3903v I 2~