Agenda - Council - 02/13/2007 - Laserfiche WebLink

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• 13. Delive • Application of Proceeds The Bonds when so prepared and executed shall be delivered by the Administrator to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 14. Fund and Accounts (a) Bond proceeds in the amount of $ shall be deposited in the General Obligation Tax Increment Bonds, Series 2001B Bond Account heretofore created by the Prior Resolution for the Prior Bonds, which amount, together with all other funds held therein and $ of available funds from the City duly appropriated for such purpose, is sufficient to prepay the Refunded Bonds on March 15, 2007 (the "Payment Account ") . (b) There is hereby created a special fund to be designated the "General Obligation Tax Increment Refunding Bonds, Series 2007B 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. There shall be maintained in the Fund the following separate accounts, to be designated the "Cost of Issuance Account" and "Debt Service Account ", respectively. (i) Cost of Issuance Account There shall be deposited in the Cost of Issuance Account all of the remaining proceeds of the Bonds not otherwise deposited in the Payment Account as provided in paragraph 15(a), less accrued interest received thereon. • Monies in the Cost of Issuance Account shall be used to pay the costs of issuing the Bonds. Any monies remaining in the Cost of Issuance Account after all costs of issuance have been paid or provided for shall be transferred to the Debt Service Account for the Bonds. (ii) Debt Service Account There are hereby irrevocably appropriated and pledged to, and there shall be credited to the Debt Service Account: (1) accrued interest received upon delivery of the Bonds; (2) Tax Increments in an amount which, together with other revenues herein pledged to the payment thereof, are sufficient to pay the principal and interest to become due on the Bonds;. (3) all collections of any ad valorem taxes which may be levied in the, event the Tax Increments herein pledged for the payment of the principal and interest on the Bonds are insufficient for the payment thereof; (4) funds remaining in the Cost of Issuance Account after all costs of issuing the Bonds have been paid; (5) funds remaining on deposit in the Payment Account after the Refunded Bonds have been paid and discharged; (6) all investment earnings on funds in the Debt Service Account; and (7) 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 amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.6 1, Subdivision 4. The moneys in the Debt Service Account shall be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. 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 1988178v1 14 -223-