1989-042 - Laserfiche WebLink

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Non -Arbitrage and Tax Covenants. The County covenants in the Resolution that it will make no use of the proceeds of the Series 1989 Bonds which would cause the Series 1989 Bonds to be "arbitrage bonds" within the meaning of Section 103(b)(2) and Section 148 of the Internal Revenue Code of 1986, as amended, and it will comply with all other requirements of applicable provisions of the Internal Revenue Code of 1986, as amended. Application of the Bond Proceeds. All moneys received from the sale of the Series 1989 Bonds shall be deposited and applied by the County as follows: (1) All accrued interest on the Series 1989 Bonds shall be deposited into the Sinking Fund and applied exclusively for the payment of interest first becoming due on the Series 1989 Bonds. (2) A sum, if any, specified by subsequent resolution of the County shall be deposited into the Reserve Account in the Sinking Fund. (3) The amount necessary to purchase and redeem all of the outstanding Original Bonds shall be paid to the FWA. (4) Next, the amount necessary to pay all engineering fees, costs and expenses of financial reports, studies and projections, legal fees, fees of financial advisors, insurance premiums, costs of the issuance of the Series 1989 Bonds, and all other similar costs incurred in connection with the retirement of the original Bonds and the issuance of the Series 1989 Bonds shall be paid or provided for. If for any reason any proceeds of the Series 1989 Bonds are not necessary for or are not applied to the payment of such costs, then such moneys shall be deposited by the County into the Sinking Fund and used only to pay the principal of and interest on the Series 1989 Bonds. A Rebate Account is established wherein amounts sufficient to pay the United States of America all amounts due with respect to the Series 1989 Bonds under the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, or under similar provisions of subsequent Federal revenue laws will be transferred from the funds and accounts created under the Resolution. Investments. All moneys in all funds and accounts created by the Resolution, including without limitation, the Revenue Fund, the Sinking Fund, the Bond Amortization Account and the Reserve Account, must be secured in the manner by which deposits of public funds are authorized to be secured by State law and may be invested only in those investments specified in Section 125.31 Florida Statutes (the Authorized Investments"). Moneys on deposit in the Revenue Fund and the Sinking Fund (except the Reserve Account therein) may be invested and reinvested only in Authorized Investments maturing not later than the date on which the proceeds thereof will be needed. 28