Ordinance 818-81 - Laserfiche WebLink

Section 8. Application of Proceeds of Sale of the Bonds. Upon the sale of the Bonds the proceeds thereof (except for accrued interest, which shall be paid into the Debt Service Account in the Revenue Bond Fund) shall be utilized as follows: There is hereby created a special fund of the City to be known as the "1981 Water and Sewer Construction Fund. " All remaining proceeds of the Bonds shall be paid into such Construc- tion Fund and utilized to pay all costs of the acquisition, construction and installation of the Project, and costs incidental thereto, and all costs incurred in connection with the issuance and sale of the Bonds. Bond proceeds not immediately needed to pay Project costs and costs of the issuance and sale of the Bonds may be deposited in or with such institutions or invested in such obligations as may now or hereafter be permitted cities of the State of Washington by law and which will mature prior to the date on which the money so invested shall be needed. All interest earned and income or profits derived by virtue of such investments shall remain in the fund or funds in which such proceeds have been deposited and be used for the purposes for which the Bonds are being issued. Bond proceeds, or income therefrom, not expended upon completion of the project, may be used, first, to meet the requirements of Section 6B hereof; second, to make additions and improvements to the System as deemed necessary by the City Council; and third, to pay the principal of an interest on any Parity Bonds. Section 9 . Bond Covenants. A. The City shall at all times maintain, preserve and keep the properties of the System in good repair, working order and condition and will from time to time make all necessary and proper repairs, renewals, replacements, extensions and better- ments thereto, so that at all times the business carried on in -17-