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SECTION 7. Funds and Accounts. <br />(a) Use of Proceeds; Capital Fund. <br />(i) First, any premium received at the time of delivery of the Bonds <br />will be deposited to the Bond Principal and Interest Account as <br />defined below and applied to payments on the Bonds on the <br />applicable interest payment date. <br />(ii) Second, if proceeds of the Bonds will be used to fund all or a <br />portion of a reserve for the Bonds, the Controller shall transfer <br />such proceeds to the Reserve Account, as directed by the <br />Controller. <br />(iii) Third, the remaining proceeds from the sale of the Bonds shall be <br />deposited in a fund hereby created and designated as the "EDIT <br />Bond Capital Fund." Such Capital Fund may be held by the City, <br />or may be held by a bank or Trustee, on behalf of the City, and in <br />such event, the Controller is hereby authorized to enter into an <br />agreement regarding the deposit to, and use of, money in such <br />fund. The proceeds deposited in the EDIT Bond Capital Fund, <br />together with all investment earnings thereon shall be expended by <br />the City only for costs of the Project and on the payment of costs <br />related to the Issuance of the Bonds. When all costs of the Project <br />and costs of issuance of the Bonds have been paid, the Controller <br />shall then transfer any amount then remaining from the proceeds of <br />the Bonds to the payment of principal on the bonds or used as <br />otherwise permitted by law. <br />(b) Funds. Upon receipt, the EDIT Revenues will be deposited into a <br />previously created "Economic Development Income Tax Fund," which consists of <br />a Bond Principal and Interest Account, a Reserve Account and an Excess <br />Account, and moneys deposited in such Fund shall be used in the following order <br />of priority within the fund. <br />(i) Bond Principal and Interest Account. As soon as possible upon <br />receipt by the City of EDIT Revenues due in May and November <br />of each year, beginning with the May 2015 distribution, but not <br />later than June 15 or December 15 following receipt of the EDIT <br />Revenues, the City shall deposit all EDIT Revenues into the Bond <br />Principal and Interest Account to be used to pay principal of and <br />interest on the EDIT Bonds (as defined in Section 10 hereof) until <br />amounts on deposit in such account are sufficient to make the next <br />principal and interest payment on the EDIT Bonds. <br />(ii) Reserve Account. After making the required deposit to the Bond <br />Principal and Interest Account, there will be deposited in the <br />