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• Section 4. Security Provisions. <br /> 4.01. 2001 Improvement Construction Fund. There is hereby created a special <br /> bookkeeping fund to be designated as the "2001 Improvement Construction Fund" (the <br /> "Construction Fund"),to be held and administered by the Finance Director separate and apart <br /> from all other funds of the City. The City appropriates to the Construction Fund (a) $1,146,080 <br /> of the proceeds of the sale of the Bonds, and(b) all collections of special assessments levied for <br /> the Improvements until completion and payment of all costs of the Improvements. The <br /> Construction Fund shall be used solely to defray expenses of the Improvements, including but <br /> not limited to the transfer to the Bond Fund,created in Section 4.02 hereof, of amounts sufficient <br /> for the payment of interest and principal, if any, due upon the Bonds prior to the completion and <br /> payment of all costs of the Improvements and the payment of the expenses incurred by the City <br /> in connection with the issuance of the Bonds. Upon completion and payment of all costs of the <br /> Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be <br /> used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the <br /> Act, as directed by the City Council,but any balance of such proceeds not so used shall be <br /> credited and paid to the Bond Fund. <br /> 4.02. 2001 Improvement Bond Fund. So long as any of the Bonds are <br /> outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a <br /> separate and special bookkeeping fund designated"2001 Improvement Bond Fund" (the "Bond <br /> Fund")to be used for no purpose other than the payment of the principal of and interest on the <br /> • Bonds and on such other improvement bonds of the City as have been or may be directed to be <br /> paid therefrom. The City irrevocably appropriates to the Bond Fund (a) all amounts in excess of <br /> $1,146,080 received from the Purchaser, (b)the collections of special assessments and other <br /> funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (c) any <br /> taxes levied in accordance with this resolution, and (d) all such other moneys as shall be received <br /> and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any <br /> time insufficient to pay all interest and principal then due on all bonds payable therefrom, the <br /> payment shall be made from any fund of the City which is available for that purpose, subject to <br /> reimbursement from the Bond Fund when the balance therein is sufficient, and the Council <br /> covenants and agrees that it will each year levy a sufficient amount to take care of any <br /> accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory <br /> tax limitation. <br /> There are hereby established two accounts in the Bond Fund, designated as the <br /> "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited <br /> in the Bond Fund shall be deposited as received into the Debt Service Account. On each <br /> February 1, the Finance Director shall determine the amount on hand in the Debt Service <br /> Account. If such amount is in excess of one-twelfth of the debt service payable from the Bond <br /> Fund in the immediately preceding 12 months,the Finance Director shall promptly transfer the <br /> amount in excess to the Surplus Account. The City appropriates to the Surplus Account any <br /> amounts to be transferred thereto from the Debt Service Account as herein provided and all <br /> income derived from the investment of amounts on hand in the Surplus Account. If at any time <br /> • the amount on hand in the Debt Service Account is insufficient to meet the requirements of the <br /> -12- <br />