CCRes_84-39 - Laserfiche WebLink

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/. ~\ -~ maintained in the Fund two separate accounts, to be designated • the "Construction Account" and the "Debt Service Account", respectively. The proceeds of the sale of the Bonds, less (a) any accrued interest received thereon, (b) any amount paid for the Bonds in excess of $588,236, and (c) capitalized interest in the amount of $155,420 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before 8/1/87 ), shall be credited to the Construction Account, from which there shall be paid all costs and expenses of the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the Bond proceeds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of tax - increments. There is hereby pledged and there shall be credited to the Debt Service Account (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $588,236; (c) capitalized interest in the amount of $ 155,420 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before 8/1/87 ); (d) tax increments derived from the redevelopment district established pursuant to • the Plan as a tax increment financing district (the "Tax Increment Financing District") (e) any collections of all taxes which may hereafter be levied in the event that the sums herein pledged to the Debt Service Account are insufficient for the payment of the principal and interest on the Bonds, (f) all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof, and (g) all investment earnings on funds held in the Debt Service Account. The Debt Service Account herein created shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds issued hereunder and any other general obligation tax increment bonds of the City hereafter issued by the City .and made payable fran said account as provided by law. Any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as 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 any applicable "temporary periods" made available under the federal arbitrage regulations. In addition, money in the Fund shall not be invested in obligations or deposits 15 •