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MA1' 21 1999 10~ S~ FR L. S. u D 651222'T6~34 TO 3504ti6429ii3tt9165 P.15~'19 Section 3. Use of Proceeds. There is hereby established on the official books and • records of the Issuer a Series I999A Improvement Construction Fund (the "Construction Fund', and the Finance Director shall continue to maintain the Construction Fund until payment of all costs and expenses incurred in connection with the construction of the local improvements financed by the Bonds have been paid To the Construction Fund there shall be credited from the proceeds of the Bonds, exclusive of unused discount and accrued interest, an amount equal to the estimated cost of the improvements and from the Construction Fund there shall be paid all construction costs and expenses. There shall also be credited to the Construction Fund all special assessments collected with respect to the improvements financed by the Bonds, until all costs of the improvements have been fully paid. After payment of all construction costs, the Construction Fund shall be discontinued and any Bond proceeds remaining therein may be transferred to the funds or accounts established for construction of other impmvemeats instituted pursuant to Minnesota Statutes, Chapter 429. All special assessments on hand in the Construction Fund when terminated or thereafter received, and aay Bond proceeds not so transferred, shall be credited to the Series 1999A Improvement Bond Sinking Fund of the Issuer. All proceeds of the Bonds deposited in the Conshuction Fund will be expended solely for the payment of the costs of the improvements refeaed to in Section 1 hereof (or other improvements authorized pursuant to Chapter 429). All improvements so financed will be owned and maintained by the Issuer and available for use by members of the general pablic on a substantially equal basis. The Issuer shall not enter into a~ lease, use or other agreement with any nvn-governmental person relating to the use of the improvements or security for the payment of the Bonds which might cause the Bonds to be considered `private activity bonds" or "private loan bonds" pursuant to Section I41 of the Iriteraal Revenue Code of 1986, as amended {the "Code'. • Section 4. Series 1999A Improvement Band Sinking_Fund. So Long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a separate debt service fund on the official books and records of the Issuer to be known as the Series 1999A Irnprovcment Bond Sinking Fund (the `Bond Fund"}, and the principal of and interest on the Bonds shall be payable from the Bond Fund. The Issuer irrevocably appropriates to the Bond Fund (a} any amount in excess of = ~1,~Q received from the Purchaser; (b} all taxes and special assessments levied and collected in accordance with this Resolution; and (c) all other moneys as shall be appropriated by the City Council to the Bond Fund from time to time. If the balance in the Bow Fund is at any time insuffcieat to pay all interest and principal then due on all " Bonds payable therefrom, the payment shall be made fiiom any fund of the Issuer which is available for that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the City Council covenants and agrees that it will cash year levy a sufficient amount of ad valorem taxes to fully pay any accumulated or anticipated deficiency, which levy is not subject to any constittrtional or statutory limitation. Section S. special Assessments. The issuer hereby covenants and agrees that, for the payment of the cost of improvements financed by the Bonds, the Issuer has done or will do and perform all acts and things necessary for the final and valid levy of special assessments in an amount not Iess than 20% of the cost of the improvements financed by the Bonds. The Issuer has levied or expects to levy assessments in the aggregate principal amo~mt of $502,000. The principal of the assessments shall be payable in not more than ten installments, with interest on unpaid »~e~.o~ • 14