82-2657 - Laserfiche WebLink

Home Browse Search

6. The City Clerk shall obtain a copy of the approving legal opinion of 0 I Connor & Hannan, bond counsel, which opinion shall be complete except for the dating thereof, and shall cause such opinion to be filed in the City offices. 7. The Bond shall be prepared under the direction of the City Clerk-Treasurer and shall be executed on behalf of the City by the manual signatures of the Mayor and the City Manager; the corporate seal of the City shall be affixed to the Bond; and the Clerk-Treasurer shall register the Bond in the name of the Purchaser on the Ci ty books kept for such purposes. The Bond when so executed shall be delivered by the City Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obligated to see to the proper application thereof. 8. In accordance with Minnesota Statutes, Section 273.76, Subdivision 5, the Tax Increments received with respect to Tax Increment District No. 4 shall be segregated in a special account, hereby created, on the official books and records of the City, which account is hereby designated Tax Increment District No. 4 Account. Within such account there is hereby created a subaccount designated as Tax In- crement District No. 4 Debt Service Account (the "Debt Ser- vice Account") which shall be held in trust by the City for the benefit of the Registered Holder of the Bond, as herein- after provided. Until the pr incipal installments of and interest on the Bond are paid, or until all of the install- ment payments of the Bond are otherwise discharged in accor- dance with paragraph II below, there shall be credited to and maintained in the Debt Service Account (a) all monthly payments of rent required to be paid to the City under that certain lease entitled "Lease By and Between the City of New Brighton and SR Building Company," up to and including the September 1, 1984, payment thereof (the "Lease Revenues"), provided that no more than twenty-five percent (25%) of the total debt service to be paid by the City on the Bond shall be derived from the Lease Revenues, and (b) Tax Increments in amounts which, together with the Lease Revenues, are sufficient to pay, when due, the principal of and interest on the Bond and (c) the proceeds of any general ad valorem taxes hereafter levied by the City for the purpose of paying the pr incipal of and interest on the Bond. The aforesaid funds in the Debt Service Account shall be used only and exclusively for, and are hereby pledged to, the payment of the principal of and interest on the Bond, when due. If any such payment of principal or interest shall become due when there are not sufficient funds in the Debt Service Account to pay the same, the Ci ty Finance Director shall pay such principal or interest from the general fund or other avail- able funds of the City, and such funds shall be reimbursed for such advances from the proceeds of the Lease Revenues or - 8 -