(A) The proceeds of the sale of the bonds herein authorized to be issued shall be deposited in Frankenmuth State Bank, Birch Run Branch, Birch Run, Michigan. From the proceeds of sale of the bonds there shall be immediately transferred to the Bond and Interest Redemption Fund, the accrued interest and premium, if any, received on sale and delivery of the bonds as well as an amount representing interest for the period for which interest is capitalized, and to the Operation and Maintenance Fund an amount representing capitalized operation and maintenance expenses. The balance of the proceeds shall be applied solely in payment of the cost of the public improvements hereinbefore described and any engineering, legal and other expenses incident thereto and to the financing thereof. Payments for construction, either on account or otherwise, shall not be made unless the registered engineer in charge of the work shall file with the Village Council a signed statement to the effect that the work has been completed in accordance with the plans and specifications therefore, that it was done pursuant to and in accordance with the contract therefore, and that the work is entirely satisfactory.
(B) Any unexpended balance of the proceeds of sale remaining, after completion of the public improvements herein authorized, may, in the discretion of the Village Council and to the extent of 15% of the amount of the bonds authorized by this subchapter, be used for further improvements, enlargements and extensions to the system, provided that at the time of the expenditure the use be approved by the Municipal Finance Commission. Any remaining balance after the expenditure shall be paid into the Bond and Interest Redemption Fund and shall be used for the redemption of callable bonds, or prior to the first call date only, purchasing bonds on the open market at not more than the fair market value thereof, and at a price in any event not exceeding the first call price.
(1992 Code, § 80.016) (Ord. 1-62, passed - - 1962)