Resolution 09-16 - Laserfiche WebLink

Home Browse Search

purchase price and the Purchasers shall not be obliged to see to the proper application thereof. `-- The Clerk-Treasurer shall obtain a copy of the legal opinion of Briggs and Morgan, Professional Association, St. Paul,Minnesota, and shall file the opinion in the City office. 9. Fund and Accounts. There is hereby created a special fund to be designated the "Taxable Library Revenue Bonds, Series 2009 Fund" (the "Fund") to be administered and maintained by the Clerk-Treasurer 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, if any, have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Acquisition Account"and"Debt Service Account", respectively. (a) Acquisition Account. To the Acquisition Account there shall be credited the proceeds of the sale of the Bonds. From the Acquisition Account there shall be paid all costs and expenses of the Project, including the cost of any purchase agreement heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in the Acquisition Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds, if applicable, due prior to collection of revenues herein pledged and provided further that if upon completion of the Project there shall remain any unexpended balance in the Acquisition Account, the balance shall be transferred by the City Council to the Debt Service Account. (b) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (i) any collection of donations to the City specifically for the library which are not required by the donor to be used for a purpose other than repayment of the bonds or the acquisition of the library building; (ii) all funds remaining in the Acquisition Account after completion of the Project and payment of the costs thereof; (iii) all investment earnings on funds held in the Debt Service Account; and (iv) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal of and, if applicable, interest on the Bonds as provided by law. The amounts held in the Debt Service Account shall be applied first to pay the principal of and interest on the Series 2009A Bond when due and thereafter to pay the principal of the Series 2009B Bonds on a prorata basis. To the extent amounts held in the Debt Service Account are not sufficient to pay the principal of and interest on the Series 2009A Bond when due, the City shall transfer to the Debt Service Account from its Library Endowment Fund an amount which, together with all other amounts held in the Debt Service Account, is sufficient to pay the principal of and interest on the Series 2009A Bond then due. 10. Sufficiency of Pledged Revenues and Coverage Test. It is hereby found, determined and declared that the Pledged Revenues are sufficient to pay one hundred five percent of the principal of and interest on the Bonds. 3 2369329v1