Resolution 24-125 - Laserfiche WebLink

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investment earnings on money held in the Debt Service Account; (iv) any amounts transferred from the Capital Account; and (v) any other money which is properly available and is appropriated by the City Council to the Debt Service Account. The money in this account may be used only to pay or prepay the principal of the Note and to pay interest on the Note and any other obligations hereafter issued and made payable from this account, and to pay any rebate due to the United States with respect to the PFA Bonds in connection with the Note. (d) Excess net revenues not required for the purposes of the Water Fund may be used for any proper municipal purpose. No portion of the proceeds of the Note may be used directly or indirectly to acquire higher yielding investments, or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Note was issued, and (ii) in addition to the above in an amount not greater than the lesser of five percent (5%) of the proceeds of the Note or $100,000. To this effect, any proceeds of the Note or any sums from time to time held in the Capital Account (or any other City account which will be used to pay principal of or interest on the Note) in excess amounts which under then applicable federal arbitrage regulations may be invested without regard to yield will not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, money in the Water Fund will not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Note to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). The City will observe the covenants of Sections 14, 15, 16, and 17 of this resolution and of Article 3 of the Project Loan Agreement with regard to the Water Fund. Section 7. Coverage Test; Pledge of Net Revenues; Excess Revenues. It is found, determined and declared that the net revenues of the Water System are sufficient in amount to pay one hundred five percent (105%) of the principal of and interest on the Note when due, and the net revenues of the Water System are pledged to the payment of the Note, but solely to the extent required to meet, with other pledged sources, one hundred five percent (105%) of the principal and interest requirements of the Note as the same become due. Section 8. Pledge to Produce Revenues. In accordance with the Act, the City hereby covenants and agrees with the holder of the Note that it will impose and collect charges for the service, use and availability of any connection to the Water System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Note. 4