(A) Monies in the Bond and Interest Redemption Fund over and above those being accumulated for the payment of principal and interest next maturing and monies in any other fund, except the Receiving Fund and the Operation and Maintenance Fund, may be invested in obligations of the United States of America. In the event such investments are made, the securities representing the same shall be kept on deposit with the bank or trust company having on deposit the fund or funds from which such purchase was made. Income received from such investments shall be credited to the fund from which said investments were made.
(B) Said bonds shall be sold and the proceeds applied in accordance with the provisions of Public Act 94 of 1933, being M.C.L.A. §§ 141.101 through 141.138, as amended.
(C) (1) The proceeds of the sale of the bonds authorized to be issued shall be deposited in Farmers and Merchants National Bank in Benton Harbor, Michigan, a Federal Reserve System member bank. Out of such proceeds, there shall first be deposited in the Bond and Interest Redemption Fund any accrued interest and an amount sufficient to pay the interest on the bonds for the period for which it was capitalized, to wit, one and one-half years. The balance of such proceeds shall be applied solely in payment of the cost of the project hereinbefore described and any engineering, financial, 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 such work shall file with the Village Council a signed statement that the work has been completed in accordance with the plans and specifications therefor, that it was done pursuant to and in accordance with the contract therefor, and that such work is entirely satisfactory.
(2) Any unexpended balance of the proceeds of sale remaining, after completion of the project herein authorized may, in the discretion of the Village Council, and to the extent of $19,500, be used for further improvements, enlargements, and extensions to the system, provided that at the time of such expenditure, such use be approved by the Municipal Finance Commission. Any remaining balance after such 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.
(Ord. 201, passed - -)