67-16 Waterworks Bond Refunding - Laserfiche WebLink

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(j) In connection with the sale of the 2016 Bonds, the Executive and the Fiscal Officer each are authorized to take such actions and to execute and deliver such agreements and instruments as they deem advisable to obtain a rating and /or to obtain bond insurance for the 2016 Bonds, and the taking of such actions and the execution and delivery of such agreements and instruments are hereby approved. SECTION 11. Use of Proceeds. The accrued interest received at the time of delivery of the 2016 Bonds, if any, and premium, if any, shall be deposited in the Bond and Interest Account of the Sinking Fund (as hereafter defined) and applied to payments on the 2016 Bonds on the first interest payment date. An amount of proceeds from the sale of the 2016 Bonds of any Series equal to the amount described in Section 14(b) w4l= be deposited Lein either the Debt Service Reserve Account or in the 2016 Subaccount of the Debt Service Reserve Account for the 2016 Bonds of such Series and applied as described below. An amount of proceeds from the sale of the 2016 Bonds of any Series equal to the estimated costs of issuance of the 2016 Bonds and other fees and charges associated with the issuance of the 2016 Bonds, including the premium for any bond insurance obtained for the 2016 Bonds, shall be deposited into a fund of the utility hereby created and designated as "City of South Bend, Indiana Waterworks 2016 Costs of Issuance Fund" (the "Costs of Issuance Fund "). The proceeds deposited in the Costs of Issuance Fund, together with all investment earnings thereon, shall be expended only for the purpose of paying the costs of issuance of the 2016 Bonds and other fees and charges associated with the issuance of the 2016 Bonds, including the premium for any bond insurance obtained for the 2016 Bonds. The remaining proceeds from the sale of the 2016 Bonds shall be deposited into a fund of the utility hereby created and designated as "City of South Bend, Indiana Waterworks 2016 Refunding Fund" (the "Refunding Fund "). The proceeds deposited in the Refunding Fund, together with all investment earnings thereon, shall be expended only for the purpose of paying the costs of the Refunding. SECTION 12. Revenue Fund. There is hereby continued a fund of the utility created and designated in the Prior Ordinances as the Revenue Fund (the "Revenue Fund "). All income and revenues of the works shall be paid into the Revenue Fund for application as described below. SECTION 13. Operation and Maintenance Fund. There is hereby continued a fund of the utility created and designated in the Prior Ordinances as the Operation and Maintenance Fund (the "Operation and Maintenance Fund ") (also shown on the books of the utility as the Operating Fund). There shall be transferred from the Revenue Fund and credited to the Operation and Maintenance Fund, on the last day of each calendar month, a sufficient amount so that the balance in this Fund shall be sufficient to pay the expenses of operation, repair and maintenance for the then next succeeding two calendar months. The moneys credited to this Fund shall be used for the payment of the reasonable and proper operation, repair and maintenance expenses of the works on a day -to -day basis, but none of the moneys in the Operation and Maintenance Fund shall be used for depreciation, replacements, improvements, extensions or additions or transfer of the Pilot Payment. Any balance in Operation and Maintenance Fund in excess of the expected expenses of operation, repair and maintenance for the next succeeding two calendar months may be transferred to the Sinking Fund if necessary to prevent a default in the payment of principal of or interest on the outstanding bonds of the works. 17