Construction of Additions and Improvements to the Sewage Works Bonds

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binding special revenue obligations of the City, payable solely out of the revenues of the City of South Bend Sewage Works to be fixed and set aside into the hereinafter referenced Sinking Fund, and the proceeds derived from the Series 1989 Bonds shall be and hereby are set aside for application by the City solely to the payment of the cost of acquiring and constructing the Improvements, together with expenses incidental thereto, including expenses in connection with the issuance of the Series 1989 Bonds. The proper officers of the City are hereby authorized and directed to draw all proper and necessary warrants and to do whatever acts and things may be necessary or appropriate in their judgment to carry out the provi- sions of this Ordinance. Section 10. The first proceeds of the Series 1989 Bonds shall be used to repay all amounts advanced by the City for preliminary expenses in accordance with the Act. Any accrued interest, premium and unused discount received at the time of the delivery of the Series 1989 Bonds shall be placed in the Capitalized Interest Fund described below. The remaining proceeds from the sale of the Series 1989 Bonds shall be deposited in a special fund to be designated as the "City of South Bend Sewage Works Construction Fund" (the "Construction Fund") less an amount equal to the difference between those interest payments becoming due and payable on August 1, 1989, February 1, 1990 and August 1, 1990 on the Series 1989 Bonds and such accrued interest, premium and unused discount, which amount, together with such accrued interest, premium and unused discount shall be deposited in a special fund to be designated as the "Series 1989 Bonds Sewage Works Capitalized Interest Fund" (the "Capitalized Interest Fund") and used to pay interest becoming due and payable on the Series 1989. Bonds on such dates, with such accrued interest, premium and unused discount to be applied first commencing with that interest payment due on August 1, 1989. Both such funds shall be in the custody and under the control of the Board of Public Works and shall be deposited with a legally qualified depository or depositories for funds of the City as provided by law and shall be segregated and kept separate and apart from all other funds of the City and may be invested as permitted by law. The money in the Construction Fund shall be expended only for the purpose of paying the cost of acquiring and constructing the Improvements together with expenses incidental thereto, including expenses in connection with the issuance of the Series 1989 Bonds and any other costs as set forth in the Act. Any balances in the Construction Fund after the completion of the acquisition and construction of the Improvements which are not required to meet unpaid obligations incurred in connection with the acquisition and/or construction of the Improvements together with expenses incidental thereto, including expenses in connection with the issuance of the Bonds, shall be deposited in the Sewage Works Sinking Fund and used solely for the purposes of that fund as provided for herein. Subject to the approval of the Board of Public Works, the City Controller shall be authorized to invest, subject to the provisions of IC 5-13 as may be amended from time to time, and subject to Section 148 of the Code as defined below, as may be amended from time to time, the funds in said Construction Fund and -18-