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of this ordinance except the right to receive the funds so set aside and pledged, and the Bond <br /> shall be deemed not to be outstanding hereunder. <br /> Section 12. Application of Bond Proceeds; Refunding Account There is hereby <br /> authorized and established a special account of the City to be maintained with the Escrow Agent <br /> (as hereinafter defined) to be known as the "City of Everett 1998 Water and Sewer Revenue <br /> Bond Refunding Account" (the "Refunding Account"), which account shall be drawn upon for <br /> the sole purpose of paying the principal of and interest on the Refunded Bonds and of paying <br /> costs related to issuance of the Bond and refunding the Refunded Bonds. The proceeds of sale of <br /> the Bond (exclusive of accrued interest thereon, which shall be paid into the Revenue Bond <br /> Fund) shall be deposited into the Refunding Account to refund the Refunded Bonds, as <br /> authorized by Ordinance No. 1433-88, and to pay costs of issuance of the Bond. <br /> Money in the Refunding Account shall be used immediately upon receipt thereof to <br /> defease the Refunded Bonds and discharge the other obligations of the City relating thereto <br /> under Ordinance No. 1433-88 of the City, by providing for the payment of the principal of and <br /> interest on the Refunded Bonds as set forth below. The City shall defease such bonds and <br /> discharge such obligations by the use of the money in the Refunding Account to purchase certain <br /> "Government Obligations" as such obligations are defined in Chapter 39.53 RCW as now or <br /> hereafter amended (which obligations so purchased, are herein called "Acquired Obligations"), <br /> bearing such interest and maturing as to principal and interest in such amounts and at such times <br /> which, together with any necessary beginning cash balance, will provide for the payment of: <br /> (a) the redemption price (100% of the principal amount) payable on <br /> July 1, 1998, of the Refunded 1988 Bond. <br /> Such Acquired Obligations shall be purchased at a yield not greater than the yield <br /> permitted by the Code and regulations relating to acquired obligations in connection with <br /> refunding bond issues. <br /> -25- DOTOO5 DOC 98/04/28 <br />