Resolution - #93-10-242 - 10/12/1993

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st~lu~ in the Escrow Account may be remitted to the City, all in accordance wi~ t~e Escrow Agreement (hereafter defined) by and between the City and ~hs~Eo~rf~_reAeg~enntt sAhanlly ~eO~eeYp~s~te~t~nedt~eO ~heebtC~eYrUv~cOen~cecro~lon of the [ ;~ (b) Debt Service Account. To the Debt Service Account there is her~bypledged and irrevocably appropriated and there shall be credited: (i) any ha, lance remitted to the City upon the termination of the Escrow , I AgZeem~ent; (ii) any balance remaining on February 2, 1996, in the Debt Ser'Tice Fund created by the City Council resolution authorizing the issuance and sal~ of the Refunded Bonds (Prior Resolution); (iii) any collections of all taxers hSreafter levied for the payment of the Bonds and interest thereon; (iv) alll nv~stment earnings on funds in the Debt Service Account: (v) tax inelements collected after the Redemption Date resulting from increases in the taXEibl~ value of real property in a tax increment financing district in the City pled ged to repayment of the Refunded Bonds in the Prior Resolution; (vi) accrued interest (if any) received upon delivery of the Bonds to the extent not ~eqtzired to fund the Escrow Account; and (vii) any and all other moneys whi~,h ace properly available and are appropriated by the City Council to the Debt S~rvice Account. The amount of any surplus remaining in the Debt Ser~icei'Account when the Bonds and interest thereon are paid shall be used as P~ov!ded in Section 475.61, Subdivision 4 of the Act. 4.02I. ~h~e moneys in the Debt Service Account shah be used solely to pay the principal o,~ a~id interest on the Bonds or any other bonds hereafter issued and made payable frbm ihe Fund. No portion of the proceeds of the Bonds shah be used directly O~ in~tirectly to acquire higher yielding investments or to replace funds which wets u~ed directly or indirectly to acquire higher yielding investments, except (i)! f, ora reasonable temporary period until such proceeds are needed for the purpose fO.~ which the Bonds were issued, and (ii) in addition to the above, in an amount nottgr~ater than the lesser of five percent of the proceeds of the Bonds or $100,000, ~ro (his effect, any proceeds of the Bonds any sums from time to time held in the Furl~ (~r any other City account which vclll be used to pay principal and interest to[~ b~come due on the Bonds) in excess of amounts which under the applicablei l!ed~ral arbitrage regulations may be invested without regard as to yield shall not 1se~invested at a yield in excess of the applicable yield restrictions imposed by the arbltr~ge regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage r ~,gt~lations. In addition, the proceeds of the Bonds and money in the Fund shall .~otlbe invested in obligations or deposits issued by, guaranteed by or insured by theUnited States or any agency or instrumentality thereof if and to the extent that ~uoh investment would cause the Bonds to be federally guaranteed within the meaninl~ of Section 149(b) of the Internal Revenue Code of 1986, as amended (the Code). 4.03. G~neral Obligation Pledge. For the prompt and full payment of the principal az~d i~terest on the Bon'ds, as the same respectively become due, the full faith, credi aJ~d taxing powers of the City shall be and are hereby irrevocably pledged, I t]~e balance in the Escrow Account or Debt Service Account is ever insufficier~t to ~ay all principal and interest then due on the Bonds and any other bonds payal le ~herefrom, the deficiency shall be promptly paid out of monies in the general fun [ o~ the City which are available for such purpose, and such general fund may b~ reimbursed with or without interest from the Escrow Account or Debt Service Ace~)ur~t when a sufficient balance is available therein.