01-27-1993 Council Agenda - Laserfiche WebLink

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Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bond 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. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Taxable Tax Increment Bond, Series 1993A 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 the entire Bond herein authorized and made payable from said Fund, including any other general obligation tax increment bonds hereafter issued to complete the Project, including any modifications or additions thereto and interest thereon have been fully paid and the city has been fully reimbursed from the pledge of tax increments for all of the principal and interest of the Bond paid by the City from taxes levied on property in the City other than the Development District. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Capital Account" and "Debt Service Account ", respectively. (i) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bond, less accrued interest received thereon. From the Capital Account there shall be paid all costs and expenses of the Project, including all costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Sections 469.176 and 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bond may also be used to the extent necessary to pay interest on the Bond due prior to the receipt of Tax Increments. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) Tax Increments, in an amount sufficient, together with other sums herein pledged, to pay the annual principal and interest payments on the Bond; (b) all accrued interest received upon delivery of the Bond; (c) any collections of all taxes which may hereafter be levied in the event that the Tax Increments and other sums herein pledged to the payment of the Bond are insufficient therefor; (d) tax increment guarantee payments, if any, received in connection with the Project pursuant to the Development Agreement entered into between the City and Xandice Heights II, Inc., (e) all investment earnings on funds held in the Debt Service Account; and (f) any and all other moneys which are properly available and are 232758 Page 41 14