Resolutions-2018-023

Section 6. 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 on behalf 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. A portion of the Loan Proceeds ($16,500) shall be retained by the Underwriter as the underwriter’s discount. A portion of the Loan Proceeds ($1,070,000, received from the sale of the Bonds, plus the additional proceeds ($1,600), shall be deposited in a dedicated fund (the “Project Fund”), which is hereby created, to be used for the payment of costs of the Project and to the extent that any such proceeds (the “Project Proceeds”) remain after the full payment of the costs of the Project7, such Project Proceeds, shall be transferred to the Debt Service Fund for the payment of interest on the Bonds. The remainder of the Loan Proceeds ($11,900) (the “Cost of Issuance Proceeds”), received from the sale of the Bonds shall be deposited in the Project Fund, and shall be used for the payment of costs of issuance of the Bonds, and to the extent that Cost of Issuance Proceeds remain after the full payment of the costs of issuance of the Bonds, such Cost of Issuance 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 Loan Proceeds to ensure compliance with the requirements of the Internal Revenue Code, as hereinafter defined. Section 7. 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 Fire Truck Acquisition Bonds, Series 2018A 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 (as hereinafter defined) 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 8. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Bonds as the same become due, there is hereby ordered levied on all the taxable property in the City in each of the years while the Bonds are outstanding, the following direct annual tax: