Resolutions-2015-089

Section 5. The Bonds shall be executed as herein provided as soon after the adoption of this resolution as may be possible, and thereupon they shall be delivered to the Registrar for registration, authentication and delivery to or upon the direction of the Underwriter, upon receipt of the loan proceeds (the “Loan Proceeds”), and all action heretofore taken in connection with the Loan Agreement is hereby ratified and confirmed in all respects. The Loan Proceeds shall be deposited in a dedicated fund (the “Project Fund”), which is hereby created, to be used for the payment of (1) costs of the planning, designing, acquisition, undertaking and construction of the Projects; (2) costs of issuance of the Bonds; and (3) to the extent that Proceeds remain after the full payment of the costs set forth in (1) and (2), such Proceeds shall be transferred to the Debt Service Fund for the payment of interest on the Bonds. The City shall keep a detailed and segregated accounting of the expenditure of, and investment earnings on, the Project Proceeds to ensure compliance with the requirements of the Internal Revenue Code, as hereinafter defined. Section 6. A separate and special fund is hereby established and shall be maintained by the City and known as the City of Tiffin, Iowa General Obligation Annual Appropriation Corporate Purpose Bonds, Series 2015A, Bond Fund (the “Bond Fund”). In addition, there shall be deposited into the Bond Fund as and when received, the following: (a) any Debt Service Tax Revenues (defined in Section 9 hereof) appropriated by the City Council for the payment of principal of and interest on the Bonds; and (b) any other amounts appropriated by the City Council from any other source for the payment of principal of and interest on the Bonds. Any funds deposited in the Bond Fund after appropriation by the City Council shall be used solely and only and are pledged to pay the principal of and interest on the Bonds when due, whether at maturity or upon optional redemption. Section 7. For the purpose of providing funds to pay the principal of and interest on the Bonds, but subject to the right of non-appropriation reserved in Section 9 hereof, there is hereby provided for each future fiscal year for which an appropriation by the City Council is made pursuant to Section 9 hereof, a levy (a “Debt Service Levy”) of a direct annual tax on all of the taxable property in the City, sufficient to produce funds (“Debt Service Tax Revenues”) in the following amounts (or such lesser amounts as may be certified by the City pursuant to Section 9 hereof): For collection in the fiscal year beginning July 1, 2016, sufficient to produce the net annual sum of $418,905; For collection in the fiscal year beginning July 1, 2017, sufficient to produce the net annual sum of $417,805;