Res. #11-007 - Accepting Proposals on the Sale of $2,760,000 G.O. Refunding Bond

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9.02. The Clerk of the City shall obtain a copy of the proposed approving legal opinion of Bradley & Deike, P.A., Edina, Minnesota, which sha11 be complete except as to dating thereof and shall cause the opinion to be printed on each Bond, together with a certificate to be signed by the facsimile signature of the Clerk in substantially the form set forth in the form of Bond. The Clerk is hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City's offices. Section 10. Funds and Accounts. There is hereby created a special fund to be designated the "General Obligation Improvement Refunding Bonds, Series 2011 A Fund" (the "Fund") to be administered and maintained by the Clerk as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There sha11 be maintained in the Fund two (2) separate accounts, to be designated the "Refunding Account" and "Debt Service AccounY' respectively. 10.01 Refundin� Account. All proceeds from the sale of the Bonds sha11 be received by the Clerk and applied to fund the Refunding Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance aze hereby irrevocably pledged and appropriated to the Refunding Account, together with all investment eamings thereon. In ' addition to the proceeds of the Bonds, the City sha11 deposit into the Refunding Account the amount of $700,000.00 in other City funds to pay the cost of raleeming the 2021 through 2023 I maturities of the 2007 Bonds. The Refunding Account sha11 be irrevocably appropriated to the � payment of the principal of and interest payable with respect to the 2004 Bonds and the 2007 I � Bonds being refunded hereby. The moneys in the Refunding Account shall be used solely for the purposes herein set forth and for no other purpose, except that any moneys remaining in the I Refunding Account after payment in full of the 2004 Bonds and the 2007 Bonds being refunded hereby sha11 be deposited in the Debt Service Account. I � 10.02. Debt Service Account There sha11 be maintained a Debt Service Account to be ' designated the "Debt Service Account". There are hereby irrevocably appropriated and pledged to, and there sha11 be credited to the Debt Service Account: (1) any proceeds of the Bonds not � used to refund the 2004 Bonds and 2007 Bonds being refunded with the proceeds of the Bonds and not used to pay the cost of issuance of the Bonds; (2) any collections of taxes herein or hereafter levied for the payment of the Bonds, and interest thereon; (3) Lhe special assessment revenues pledged pursuant to section 12; and (4) any and a11 other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds are paid shall be used consistent with Minnesota Statutes, Section 475.61, subd. 4. The moneys in the Debt Service Account sha11 be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Debt Service Account. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding inveshnents or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an 14