Ordinance 2663-02 - Laserfiche WebLink

Section 8. Application of Bond Proceeds; Refunding Plan . (a) Accrued Interest. Interest accrued on the Bonds from their date to the date of issuance shall be deposited in the Bond Fund and shall be used to pay interest on the Bonds coming due on June 1, 2003. (b) Project Fund. The City shall establish a fund designated the "Public Space Fund" (the "Project Fund") into which the proceeds of the Improvement Bonds (other than accrued interest) shall be deposited. Money on hand in the Project Fund shall be used to pay the costs of or reimbursement for the costs of the Project and costs of issuance of the Bonds. The Finance Director may invest money in the Project Fund in legal investments for City funds. Earnings on such investments shall accrue to the benefit of the fund earning such interest. Any part of the proceeds of the Bonds remaining in the Project Fund after all costs of the Project have been paid (including costs of issuance) may be used for any capital purpose of the City or may be transferred to the Bond Fund. (c) Refunding. A portion of the proceeds of sale of the Refunding Bonds in the dollar amount certified by the City to the Escrow Agent shall be delivered to the Escrow Agent for the purpose of defeasing the Refunded Bonds and paying related costs of issuance. Money received by the Escrow Agent from Bond proceeds and other money provided by the City, shall be used immediately by the Escrow Agent upon receipt thereof in accordance with the terms of the Escrow Agreement to defease the Refunded Bonds as authorized by the 1993 Trust Agreement and the 1993 Bond Ordinance and to pay costs of issuance of the Refunding Bonds. The City shall defease the Refunded Bonds and discharge such obligations by the use of money deposited with the Escrow Agent to purchase certain Government Obligations (which obligations so purchased, are herein called "Acquired Obligations"), bearing such interest and -22- P:\CMW\CMW5IL 12/06/02