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Prior to the sale of the Bonds,the Mayor,the City Manager of the City and the Director of <br /> Finance of the City are each hereby authorized to approve and execute a commitment for the <br /> purchase of a Municipal Bond Insurance Policy (as hereinafter defined), to further secure all or a <br /> portion of the Bonds, as long as the present value of the fee to be paid for the Municipal Bond <br /> Insurance Policy(using as a discount rate the expected yield on the Bonds treating the fee paid as <br /> interest on the Bonds) is less than the present value of the interest reasonably expected to be saved <br /> on the Bonds over the term of the Bonds as a result of the Municipal Bond Insurance Policy. <br /> Section 16. Creation of Funds and Appropriations. <br /> A. There is hereby created the "General Obligation Bonds, Series 2022, Bond Fund" <br /> (the "Bond Fund"), which shall be the fund for the payment of principal of and interest on the <br /> Bonds. Accrued interest received upon delivery of the Bonds, if any, shall be deposited into the <br /> Bond Fund and be applied to pay first interest coming due on the Bonds. <br /> B. The Pledged Taxes shall either be deposited into the Bond Fund and used solely and <br /> only for paying the principal of and interest on the Bonds or be used to reimburse a fund or account <br /> from which advances to the Bond Fund may have been made to pay principal of or interest on the <br /> Bonds prior to receipt of Pledged Taxes. Interest income or investment profit earned in the Bond <br /> Fund shall be retained in the Bond Fund for payment of the principal of or interest on the Bonds <br /> on the interest payment date next after such interest or profit is received or, to the extent lawful <br /> and as determined by the Council,transferred to such other fund as may be determined. The City <br /> hereby pledges, as equal and ratable security for the Bonds, all present and future proceeds of the <br /> Pledged Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved <br /> right of the Council to transfer certain interest income or investment profit earned in the Bond <br /> Fund to other funds of the City, as described in the preceding sentence. <br /> -23- <br />