Agenda Packets - 1988/01/11 - Laserfiche WebLink

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Debt Service Account. There Is hereby pledged and there shall be credited C to the Debt Service Account (a) all unused discount and accrued Interest received upon delivery of and payment for the Bonds, (b) subject to Section 6.01 hereof, collections of tax Increment derived from the District and pledged to the payment of principal of and interest on the Bonds, any taxes levied for the payment of the Bonds, and revenues derived from any other sources available and pledged to pay principal, premium, if any, and Interest on the 9onds, (c) $1,651,000 to be used to pay interest on the Bonds prior to the collection of tax Increment and other revenues sufficient to pay debt service on the Bonds, ak (d) all funds remaining In the Capital Account after completion of the Project and payment of the costs thereof. The Deb: Service Account herein created shall be used solely to pay principal of, premium, if any, and Interest on the Bonds and any other general obligation tax Increment bonds hereafter issued and made payable from said Debt Service Account, except that upon discharge of the Bonds and such already outstanding or additional Bonds, the issuer may use any remaining funds in the Deb, Service Account to reimburse the Issuer as provided above. 5.02. To provide additional moneys for the payment of principal and Interest on the Bonds there Is hereby levied upon all of the taxable property In the Issuer a direct annual ad va!orem tax which shrJ1 be spread upon the tax rolls and collected with and as part of, other general property taxes in said Issuer for the years and in the amounts as follows: Levy Year Collection Year Amount Levied [See Attached] Said tax levies, if any, are such that if collected in full, they, together with estimated collections of tax increment from the District and the other amounts therein pledged to the payment of the Bonds, will produce at least five percent (5%) in excess of t_:: amount needed to me.' mhen due the principal and interest payments on the Bonds (except for interest payable from funds which shall be on hand and irrevocably deposited to the Debt Service Account as of the date of delivery of and payment for the Bonds). Said tax levies shall be irrevocable so long as any of the Bonds are outstanding and unpaid, provided that the issuer reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes Section 475.61, subdivision 3. The Issuer hereby determines that the estimated collections of tax increment and other pledged amounts, together with the above levy, if collected in full, will pro�uce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds (except for Interest and principal payable from funds, which are on hand and irrevocably ceposited to the Debt Service Account as of the date of delivery of and payment for the Bonds). The full faith and credit and taxing powers of the issuer are hereby irrevocably pledged for the prompt and full payment of the principal of and Interest on the Bonds and such other gene -al obiigation indebtedness as may be made payable from the Bond Fund, as such principal and interest respectively become due. 5.03. Interest earnings from the Investment of money in the Capital Account and the Debt Service Account shall be deposited In the respective accounts. M