Res. #09-020 - Accepting Proposal on the Sale of $3,715,000 G.O. Taxable Imp. Bonds, Series 2009A

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9.02. The City Administrator of the City shall obtain a copy of the proposed approving legal opinion of Bradley & Deike, P .A., Edina, Minnesota, which shall 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 City Clerk in substantially the form set forth in the form of Bond. The City 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 Taxable Improvement Bonds, Series 2009A Fund" (the "Fund") to be administered and maintained by the City Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official fmancial records of the City. The Fund shall be maintained in the marmer herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Construction Account" and "Debt Service Account" respectively. 10.01 ProiectAccount. To the Construction Account there shall be credited an amount of the proceeds of the Bonds necessary to pay the City's costs of issuance of the Bonds and constructing the Project. After payment of all such costs, any Bond proceeds remaining on hand in the Construction Account shall be transferred to the Debt Service Account. 10.02. Debt Service Account. There shall be maintained a Debt Service Account to be designated the "Debt Service Account". There are hereby irrevocably appropriated and pledged to, and there shall be credited to the Debt Service Account: (I) accrued interest and unused discount and any proceeds of the Bonds not used to pay the City's costs of constructing the Project or other improvement projects or to pay the cost of issuance of the Bonds; and (2) general fund moneys and tax levy receipts in each year sufficient to pay the debt service due on the Bonds in each year; and (3) special assessment receipts and fees and charges pledged pursuant to Section 11 of this Resolution. The moneys in the Debt Service Account shall be used solely to pay the principal of and interest on the Bonds until such Bonds are paid in full. 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 (I) 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 amount not greater than the lesser of five percent (5%) 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 Project Account, or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. 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"). 15