Resolution 2001-083 - Laserfiche WebLink

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pledged to the payment of the principal and interest on the Bonds are insufficient therefor, are hereby pledged and shall be credited to the Debt Service Fund. There is appropriated to the Debt Service Fund all capitalized interest financed from Bond proceeds, if any, any amount over the minimum purchase price of the Bonds paid by the Purchaser and all accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 5.02 The Issuer hereby covenants and agrees that for payment of the cost of that portion of the Improvements financed by the Improvement Bonds, it will do and perform all acts and things necessary for the full and valid Ievy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the areas proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20 %) of the cost of that portion of the Improvements financed by the Improvement Bonds. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the Issuer or this Council or any of the Issuer's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the Issuer and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments shall be in the principal amount of $395,610 payable in not more than ten (10) installments, the first installment to be collectible with taxes during the year 2002. Deferred installments shall bear interest at a rate per annum determined by resolution of the Council at the time the assessments are actually levied. At the time the assessments are in fact levied the Council shall, based on the then- current estimated collections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the Issuer continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 5.03. The municipal state -aid, special assessments and ad valorem taxes to be levied are such that if collected in full they, together with estimated collections of any other revenues herein pledged for the payment of the Bonds, will produce at least five percent (5 %) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. 5.04 In order to ensure compliance with the Internal Revenue Code of 1986, as amended (the "Code "), and applicable regulations, the City Clerk of the Issuer, upon allocation of any funds to the Debt Service Fund, shall ascertain the balance then on hand in the Debt Service Fund. If it exceeds the amount of principal and interest on the Bonds to become due and payable through October I next following, plus a reasonable carryover equal to not more than 1/12th of the debt service due in the following bond year, said excess shall (unless an opinion is otherwise received from bond counsel) be used to purchase Bonds, or invested at a yield which does not exceed the yield on the Bonds calculated in accordance with Section 148 of the Code. -8-