1985-024 Council Resolution - Laserfiche WebLink

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shall be credited to the Construction Account, from which there shall be paid all costs and expenses of making the Improvements, 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. (ii) Debt Service Account. 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 $1,826,875; (c) capitalized interest in the amount of $209,725 (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 May 1, 1987); (d) the proceeds of any definitive improvement bonds issued to refund the Bonds to the extent necessary to pay any principal and interest on the Bonds, the payment of which has not otherwise been provided for; (e) all funds remaining in the Construction Account after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement; and (f) 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 bonds of the City hereafter issued by the City and made payable from said account as provided by law. (iii) Investments. Any sums from time to time held in the Debt Service Account 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. Money in the Debt Service Account shall 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 Bonds to be "federally guaranteed" within the meaning of Section 103(h) of the Internal Revenue Code of 1954, as amended. 15