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SECTION 11. Defeasance. In the event that money and/or "Government Obligations," as <br /> such obligations are now or may hereafter be defined in Chapter 39.53 RCW, maturing at such <br /> time or times and bearing interest to be earned thereon in amounts (together with other such <br /> money, if necessary) sufficient to redeem and retire, refund or defease part or all of the Bonds in <br /> accordance with their terms, are set aside in a special account of the City to effect such <br /> redemption and retirement, and such moneys and the principal of and interest on such <br /> Government Obligations are irrevocably set aside and pledged for such purpose, then no further <br /> payments need be made into the Bond Fund for the payment of the principal of and interest on the <br /> Bonds so provided for, and such Bonds shall cease to be entitled to any lien, benefit or security of <br /> this ordinance except the right to receive the moneys so set aside and pledged, and such Bonds <br /> shall be deemed not to be outstanding hereunder. <br /> SECTION 12. Application of Bond Proceeds. The proceeds of the sale of the Bonds shall <br /> be used and applied as follows: <br /> (a) The amount equal to the interest (if any) accruing on the Bonds from their date to <br /> the date of their delivery shall be deposited in the Bond Fund. <br /> (b) The balance of the Bond proceeds shall be used to pay the costs of issuing the <br /> Bonds and to provide for the refunding of the Refunded Bonds, as set forth in the following <br /> section. <br /> SECTION 13. Advance Refunding Account. There is hereby authorized and established <br /> a special account of the City to be maintained with the Refunding Trustee (as hereinafter defined) <br /> to be known as the "City of Everett 1994 Limited Tax General Obligation Bond Advance <br /> Refunding Account" (the "Advance 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 Bonds and refunding the Refunded Bonds. <br /> Money in the Advance Refunding Account shall be used immediately upon receipt thereof <br /> to defease the Refunded Bonds and discharge the other obligations of the City relating thereto <br /> under Ordinance Nos. 1505-88 and 1740-90 of the City, by providing for the payment of the <br /> -16- ooro&L.00c 94/01n9 <br />