O-1984-1398 - Laserfiche WebLink

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. . I t ~ . e may demonstrate that the net revenues are wholly adequate to protect the District's bonds as they mature; and at such time the District's tax may be wholly abated, until further experience may demonstrate the necessity again to exert the District' taxing power in order to avoid default in the payment of the District's said bonds as they mature. 4.02. Taxation for Benefit of Bonds by Annexing c~ty. The obligations of the District to levy a tax without lJ.mJ.t as to rate and amount on taxable property within the District and to pledge and collect the net revenues from operation of the System shall terminate when and if a city, town or village annexes the District, takes over the proper- ties of the District and assumes the debts, liabilities and other obligations of the District and abolishes the District and the annexing city, town or village shall be required to provide for the payment of principal and interest on the Outstanding Bonds, the Bonds and any Additional Bonds in the manner now or hereafter required by law. Nothing contained herein shall impair the bondholders' rights to full payment of principal and interest on the Outstanding Bonds, the Bonds and any Additional Bonds by requiring the levy of ad valorem taxes within the District after annexation, if necessary. 4.03. Incorporation of Certain Terms. Except where inconsistent with the provisions of this Order, Sections X and XI of the Bond Order adopted by the Board of Directors ,on September 13, 1968, ordering to be issued the District's Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1968, are hereby adopted by reference, and same shall apply with equal force to the bonds ordered to be issued by this Order as if said sections were fully set forth herein. Section 5. APPLICATION OF BOND PROCEEDS Proceeds from the sale of the Bonds will be dis- bursed in accordance with this Section. 5.01. Accrued Interest. Moneys received from the purchasers of the Bonds representing accrued interest on the Bonds from the Initial Date or the last interest payment date to the date of their actual delivery shall be deposited into the Bond Fund. 5.02. Interest During Construction. The Board affirmatively finds that the period of construction of the improvements described in Section 5.03 hereof will be not less than six months from the date the Bonds are sold. To establish an interest and sinking fund for the payment of the interest during the first six months on the Bonds, there is hereby appropriated and set aside out of the proceeds of the sale of the Bonds an amount sufficient to pay said interest during said period. 5.03. Construction Fund. The proceeds of the sale of the Bonds, as received, after making the deposits hereinbefore provided, shall be deposited into the Construc- tion Fund and shall be used solely for the payment of the expenses incidental to the issuance of the Bonds, including fiscal, legal and engineering fees and expenses, and the costs of the construction and/or purchase and acquisition of the System, including without limitation the facilities, plants, equipnlent, improvements and rights set forth in the Engineer's Report filed in the office of the District, -13-