2013.02.25 RESO 2013-05 - Laserfiche WebLink

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(ii) Abatement Debt Service Subaccount. To the Abatement Debt Service Subaccount there is hereby pledged and irrevocably appropriated and there shall be credited: (1) after the Crossover Date, Tax Abatements in the amount abated by the Abatement Resolutions and in the manner specified in the Agreement; (2) any collections of all taxes herein or hereafter levied for the payment of the Abatement Refunding Portion; (3) a proportionate share of accrued interest received upon delivery of the Bonds; (4) a proportionate share of any sums remitted to the City pursuant to the Escrow Agreement; (5) any balance remaining after the Crossover Date in the Debt Service Account created by the Prior Abatement Resolution; (6) all investment earnings on funds in the Abatement Debt Service Subaccount; and (7) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Abatement Debt Service Subaccount. The amount of any surplus remaining in the Abatement Debt Service Subaccount when the Abatement Refunding Portion and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. No portion of the proceeds of the Bonds shall 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 (a) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (b) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested 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, the proceeds of the Bonds and money in the Fund 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 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 17. Covenants Relating to the Capital Improvement Refunding Portion. (a) Tax Lew; Coverage Test; Cancellation of Certain Tax Levies. To provide moneys for payment of the principal and interest on the Capital Improvement Refunding Portion there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Years of Tax Lew Years of Tax Collection Amount 2014-2018 2015-2019 See attached schedule The tax levies are such that if collected in full they, together with estimated collections of any other revenues herein pledged for the payment of the Capital Improvement Refunding 15 5253945v1