Reso 2010-1538-1 - Laserfiche WebLink

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. . (d) The Sale Proceeds, together with all amounts derived from the investment thereof, wilI not exceed by any amount the amount necessary for the governmental purposes of the Bonds. . (e) The City has incurred binding obligations to third parties in an aggregate amount in excess of 5 percent of the Sale Proceeds to acquire the Project. The expenditure ofthe Sale Proceeds wilI proceed with due diligence to the completion thereof. The City reasonably expects that at least 85 percent of the Sale Proceeds will be applied to pay costs of the Project within three years ofthe date hereof. (f) No portion of the Sale Proceeds or amounts derived from the investment thereofwill be used to pay debt service on any other debt obligation of the City. . (g) The City reasonably expects that the Project will continue throughout the term ofthe Bonds to be owned and operated by the City. 3. Flow of Funds . (a) The City has covenanted in the Loan Agreement to budget and appropriate sufficient Non-Ad Valorem Revenues to pay the principal of and interest on the Bonds, as they become due and payable. Such revenues are required to be deposited in the Bond Fund. . (b) The Bond Fund has been established to achieve a proper matching of revenues and debt service within each Bonds year and will be depleted at least once each year (except for a reasonable carryover amount that will not exceed the greater of one year's earnings on the Bond Fund and 1/12 of annual debt service on the Bonds). All amounts in the Bond Fund will be expended to pay debt service on the Bonds within 13 months of the date of receipt thereof (12 months if the amounts are interest or income from the investment of such amounts). Amounts in the Bond Fund will be invested without yield restrictions. Interest earnings and gains resulting from investment of the Bond Fund will be retained in that Fund and used for payment of debt service on the Bonds. . Cl (c) The Rebate Fund is not pledged to pay debt service on the Bonds and will not be available if needed to pay such debt service. 4. Yield Restrictions (a) The restrictions set forth in this Section 4 apply to taxable investments. . For this purpose, taxable investments include all investments other than obligations the interest on which is (i) excluded from gross income for federal income tax purposes; and (ii) not an item of tax preference for federal alternative minimum tax purposes. (b) Sale Proceeds and interest or income derived from the investment thereof . will not be invested in taxable investments that produce a yield over the term ofthe Bonds that is materially higher than the yield on the Bonds (within the meaning of26 CFR Sec. 1.1482(d)(2)) 2 {MI886561_2} Ie I