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Section 3. Form of Bond. 3.01. Execution of the. Bonds. The Bonds will be printed or typewritten in substantially the farm set forth in.EXHIBIT B. 3.02. Approving Legal Opinion. The City Clerk is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered., Minneapolis, .Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond: Section 4. Payment; Security; Pledges and Covenants. 4.01. Debt Service Fund. The Bonds wi1l be payable from the General Obligation Improvement Bonds; Series 2018A Debt Service:.Fund (the "Debt Service Fund") hereby created. The Delft Service Fund shall be administered and maintained by the Treasurer as .a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Treasurer shall timely deposit in the Debt Service Fund the following: (i) ad valorem taxes bereinatter levied (the "Taxes"..) and special assessments levied. against property specially benefited by the 2018 Assessable improvements (the "Assessments"); (ii) capitalized interest financed from Bond proceeds;, if any; (iii) amounts over the minimum purchase price paid by the: Purchaser, to the extent designated for deposit in. the Debt Service Fund in accordance with Section 1.03 hereof; (iv) any and all other moneys which are properly available and appropriated. by the. City Council to .the. Debt Service Fund;. and (v),all investment. earnings. on fiends in the Debt Service Fund. 4:02, Construction Fund. The City Hereby creates the General Obligation Improvement Bonds, Series.2018A Construction Fund (the "Construction Fund"). Proceeds of theBonds, less the appropriations made. in Section 4.01(a) hereof, together with Taxes, Assessments, and any other funds.. appropriated for the 2418 Assessable Immprovements collected during the construction of the 2018 Assessable Improvements, will be. deposited in the Construction Fund to be used solely to defray expenses of the: 2018 Assessable .Improvementsand the payment of principalof and interest on the Bonds prior to the completion and payment of all costs of the 2018 Assessable .Improvements. Any balance :remaining in the. Construction Fund after completion of the 201.8 Assessable Improvements may be used to pay thecostin whole or in part of any other improvement instituted under the Act, under the direction of the. City Council. When the 2018 Assessable Improvements. are completed and the cost thereof paid, the Construction Fund is to be closed and any subsequentcollections.. of Taxes and Assessments for the 20.18. Assessable Improvements are to be deposited in the Debt. Service.l~und. 4.03. City Covenants. with .Respect to the Bonds.. It .is hereby detennined that the 2018 Assessable Improvements will. directly and indirectly benefit abutting property, and the City .hereby covenants with the holders froin tune to time of the -Bonds as follows: (a) The City hascaused. or wi1l cause. the Assessments for the 2018 Assessable Improvements to be promptly levied so that the first. installment will. be collectible not later than 2019 and will take all steps necessary. .to assure: prompt collection, and the levy of the special assessments is hereby authorized: The City Council will cause to betaken with due diligence all further actions that are required for the construction :of each Assessable Improvement 'financed wholly or partly from ,the proceeds of the Bonds, and will take all further .actions necessary for the final and valid levy of the. Assessments and the: appropriation of any other funds. needed to pay the Bonds and interest thereon when due. 526486v1 GAF GE190-14