Loading...
HomeMy WebLinkAboutMINUTES - 07191988 - 1.58 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY,CALIFORNIA Adopted this Order on , July 19, 1988 by the following vote: AYES: Supervisors Powers, Eanden, MCPeak, Torlakosn, Schroder. NOES: None. ABSENT: None. ABSTAIN: None. SUBJECT: Unleashed Dogs in Diablo The Board received a report from the .Director of Animal Services dated July 11, 1988 with respect to Board referral dated May 17, 1988 regarding problems with unleashed dogs in Diablo. IT IS BY THE BOARD ORDERED that the above named correspon- dence is ACKNOWLEDGED. I hereby certify that this iso true and coriectcopy of an action taken and entered on the minutes of the Board of Supereis rs on the date shown. �G ATTESTED: U PHIL BA HELOR Clerk of the Board of Supervisors and County Administrator Deputy By Orig. Dept. cc: County Administrator County Counsel Animal Services RESOLUTION 88/444 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA, AUTHORIZING THE ISSUANCE OF LIBERTY UNION HIGH SCHOOL DISTRICT, COUNTY OF CONTRA COSTA, CALIFORNIA, . 1988 GENERAL OBLIGATION BONDS, SERIES A, IN THE PRINCIPAL AMOUNT NOT TO EXCEED $5 MILLION FOR THE PURPOSE OF FINANCING REAL PROPERTY ACQUISITION OR IMPROVEMENTS . WHEREAS, a duly called special municipal election was held in the Liberty Union High School District, County of Contra Costa, State of California (hereinafter referred° to as the "District" ) , on June 7, 1988 and thereafter canvassed pursuant to law; WHEREAS, at such election there was submitted to and approved by the requisite two-thirds vote of the qualified electors of the District a question as to the issuance and sale of general obligation bonds of the District for various purposes set forth in the ballot submitted to the voters, in the maximum amount of $10, 000, 000 payable from the levy of an ad valorem tax against the taxable property in the District; WHEREAS, at this time this Board has received the resolution of the governing board of the District requesting the issuance of a portion of such Bonds in the aggregate principal amount not to exceed $5 million (the "Series A Bonds" ) ; WHEREAS, all acts , conditions and things required by law to be done or performed have been done and performed in strict conformity with the laws authorizing the issuance of general obligation bonds of the District , and the indebtedness of the District, including this proposed issue of Series A Bonds , is within all limits prescribed by law; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA, AS FOLLOWS : SECTION 1 . That for the purpose of raising money for real property acquisition or improvements, including (a) the purchasing of school lots; (b) the building of school buildings; (c) the making of alterations or additions to the school buildings; (d) the supplying of school buildings and grounds with furniture and equipment of a permanent nature, and to pay all necessary legal , financial , engineering and contingent costs in connection therewith, the County hereby authorizes the issuance of the Series A Bonds . " 1 3196001/1 SECTION 2 . Notice Inviting Bids . The invitation for bids for the purchase of the Series .A Bonds is hereby authorized, such invitation to be substantially in accordance with the Notice .Inviting Proposals For Purchase of Bonds attached hereto as Exhibit A and by this reference incorporated herein (the "Notice Inviting Bids" ) . The Notice Inviting. Bids and the Bid Form ( including the memorandum of interest cost) , attached hereto as Exhibit B and by this reference incorporated herein, are hereby approved. SECTION 3 . Local Publication of Notice of Intention to Sell Bonds . The Superintendent of the District is hereby directed to execute and the Clerk of the District is directed to publish the Notice of Intention to Sell Bonds' in the Contra Costa Times, a newspaper published and of general circulation in the County of Contra Costa, California, once a week for two successive weeks . SECTION 4 . Terms and Conditions of Sale. The terms and conditions of the offering and the sale of the Series A Bonds shall be as specified in the Notice Inviting Bids. SECTION 5 . Furnishing of Notice Inviting Bids and Official Statement . The Clerk of the District and the financial advisor to the District, Kelling, Northcross & Nobriga, Inc . (the "Financial Advisor" ) are hereby authorized and directed to cause to be furnished to prospective bidders a reasonable number of copies of the Notice Inviting Bids ( including the Bid Form) and a reasonable number of copies of the Official Statement , SECTION 6 . Publication of Intention to Sell'. The Superintendent of the District is hereby directed to publish a Notice of Intention to Sell in The Bond Buyer once at least fifteen' ( 15) days prior to the date set to receive bids , substantially in the form attached hereto as Exhibit C, which form is hereby approved. SECTION 7 . General Authorization. The Financial Advisor and/or Bond Counsel are hereby authorized and directed to open the bids at the time and place specified in the Notice Inviting Bids and to present' the same to the County. The Financial Advisor and/or Bond Counsel are hereby authorized and directed to receive and record the receipt of all bids made pursuant to the Notice Inviting Bids , to cause said bids to 'be examined for compliance with the Notice Inviting Bids, to cause computations to be made as to which bidder has bid the lowest net interest cost, as .provided in the Notice Inviting Bids, along with a report as to the foregoing and any other matters, deemed pertinent to the award of the Series A Bonds and;. the . proceedings for the issuance thereof . 2 3196001/1 SECTION 8 . The Series A Bonds shall be issued as fully registered Bonds registered as to both principal and interest, in the denominations of $5 , 000 or any integral multiple thereof, and. shall be dated August 1 , 1988 . The Series A Bonds shall bear interest from the ,date of the .Series .A Bonds to maturity of .each of the Series . A Bonds at a rate or rates such that the interest rate shall not exceed 120 per annum. Interest shall be payable on February l and August 1 of each year (the " Interest Payment Dates" ) , commencing February 1 , 1989 , until the principal , amount has been paid or provided for . Each Series A Bond shall bear interest from the interest payment date next preceding the date of authentication thereof unless it is authenticated as of a day during the period from the 16th day of the month next preceding any interest payment date to the interest payment date, inclusive, in which event it shall bear interest from such interest payment date, or unless it is authenticated on or before January. 15 , 1989 , in which event it shall bear interest from August 1 , 1988 . The Series A Bonds shall mature on August 1 of the years and in the amounts determined by the County Treasurer-Tax Collector upon the recommendation of the District, such determination to be conclusively evidenced by the publication of such dates and amounts in the Notice Inviting Bids . The Series A Bonds maturing on or before August 1 , 1996 , are non-callable. The Series A Bonds maturing on August 1 , 1997, or any time thereafter , are callable for redemption prior to their stated maturity date at the option of the District, in whole on any date, or in part on any Interest Payment Date, on or after August 1 , 1996, and may be redeemed prior to the maturity thereof by payment of all principal , plus accrued interest to date of redemption, plus the payment: of a premium (expressed as a percentage of the principal amount) , payable from any source lawfully available therefor, as follows : Redemption Date Redemption Premium August 1 , 1996 through July 31 , 1997 102 % August 1 , 1997 through July 31 , 1998 101% August 1 , 1998 through July 31 , 1999 101 August 1 , 1999 through July 31 , 2000 100% August 1 2000 through thereafter 100 If less than all of the Series A Bonds of any one maturity shall be called for redemption, the particular Series A Bonds or portions of Series A Bonds of such maturity to be redeemed shall be selected by lot by the District in such manner as the 3 3196001/1 District in its discretion may determine; provided, however , that the portion of any Series A Bond to be redeemed shall be . in the principal amount of $5 , 000 or some multiple thereof and that, in selecting Series A Bonds for redemption, the Bond . ,Registrar (as .defined in Section 10 below) shall treat each Series A Bond as representing that number of Series A Bonds which is obtained by dividing the principal amount of such Series A Bond by $5 , 000 . If less than all of the Series A Bonds stated to mature on different dates shall be called for redemption, the particular Bonds or portions thereof to be redeemed shall be called in the inverse order of, their maturities . The Bond Registrar shall give notice of the redemption of the Series A Bonds at the expense of the District . Such notice shall specify; (a) that the Series A Bonds or a designated portion thereof are to be redeemed, (b) the numbers and CUSIP numbers of the Series A Bonds to be redeemed, (c) the date of notice and the date of redemption, (d) the place or places where the redemption will be made, and (e) descriptive information regarding the Series A Bonds including the dated date, interest rate and stated maturity date. Such notice shall further state that on the specified date there shall become due and payable upon each Series A Bond to be redeemed, the portion of the principal amount of such Series A Bond to be redeemed, together with interest accrued to said date, and redemption premium, if any, and that from and after such date interest with respect thereto shall cease to accrue and be payable . Notice of redemption shall be by registered 'or otherwise secured mail or delivery service, postage prepaid, to the original purchaser of the Series A Bonds , or if the original purchaser is a syndicate, to the managing memberl� of such syndicate, to a municipal registered securities depository and to a national information service that disseminates securities redemption notices, and by first class mail , postage prepaid, to the District and County and the respective Owners of any registered Series A Bonds designated for redemption at their addresses appearing on the Bond registration books , in every case at least 30 days, but not more than 60 days, prior to the redemption date; provided that neither failure to receive such notice nor any defect in any notice so mailed shall affect the sufficiency of the proceedings for the redemption of such Series A Bonds . SECTION 9 . The Series A Bonds shall be signed by the Chairman of the Board of Supervisors and the County Treasurer-Tax Collector by their manual or facsimile signatures and countersigned by the manual or facsimile signature of and 4 3196001/1 the seal of the County affixed thereto by the Clerk of the Board of Supervisors , all in their official capacities . No Series A Bond shall be valid or obligatory for any purpose or shall. be entitled to any security or benefit under this resolution unless and until the certificate of authentication printed on the Series A Bond is signed by the Bond Registrar as authenticating agent . Authentication by the Bond Registrar shall be conclusive evidence that the Series A Bond so authenticated has been duly issued, signed and delivered under this resolution and is entitled to the security and benefit of this Resolution. SECTION 10 . This Board does hereby appoint ♦The Bank of America National Trust and Savings Association, ;San Francisco, California to act as the authenticating agent, bond registrar , transfer agent and paying agent (collectively, the "Bond Registrar" ) for the Series A Bonds . SECTION 11 . The principal of and interest 'on the Series A Bonds shall be payable in lawful money of the United States of America without deduction for the services of the Bond Registrar as paying agent . Principal shall be payable when due upon presentation and surrender of the Series A Bonds at the principal corporate trust office of the Bond Registrar . Interest on a Series A Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Series A Bond was registered, and to that person' s address appearing, on the Bond Register (as defined in Section 12 below) at the close of business on the 15th day of the calendar month next preceding that Interest 'Payment Date (the "Record Date" ) . SECTION 12 . So long as any of the Series A Bonds remain outstanding, the District will cause the Bond Registrar to maintain and keep at its principal corporate trust office all books and records necessary for the registration, exchange and transfer of the Series A Bonds as provided in this Section (the "Bond Register" ) . Subject to the provisions of Section 11 above, the person in whose name a Series A Bond ,is registered on the Bond Register shall be regarded as the absolute owner of that Series A Bond for all purposes of this Resolution. Payment of or on account of the principal of and interest on any Series A Bond shall be made only to or upon �the order of that person; neither the District, the County nor the Bond Registrar shall be affected by any notice to the contrary, but the registration may be changed as provided in this Section. All such payments shall be valid and effectual to satisfy and discharge the District ' s liability upon the Series A Bonds , including interest, to the extent of the amount ,;or amounts so paid. 5 3196001/1 Any Series A Bond may be exchanged for Series A Bonds of any authorized denomination upon presentation and surrender at the principal corporate trust office of the Bond Registrar , . :together with a request for exchange signed by the registered .owner or by a person legally empowered to do so in a form satisfactory to the Bond Registrar . A Series A Bond may be transferred only on the Bond Register upon presentation and surrender of the Series A Bond at the principal corporate trust office of the Bond Registrar together with an assignment executed by the registered owner or by a person legally empowered to do so in a form satisfactory to the Bond Registrar . Upon exchange or transfer the Bond Registrar shall complete, authenticate and deliver a new Series A Bond or Serres A Bonds of any authorized denomination or denominations requested by the owner equal in the aggregate to the unmatured principal amount of the Series A Bond surrendered and bearing interest at the same rate and maturing on the same date. If manual signatures on behalf of the County are required, the Bond Registrar shall undertake the exchange or transfer of Series A Bonds only after the new Series A Bonds are signed by the authorized officers of the County. In all cases of exchanged or transferred Series A Bonds, the County shall sign and the Bond Registrar shall authenticate and deliver Series A Bonds in accordance with the provisions of this Resolution. All fees and costs of transfer shall be paid by the transferor . Those charges may be required to be paid before the procedure is begun for the exchange or transfer . All Series A Bonds issued upon any exchange or transfer shall be valid obligations of the District, evidencing the same debt, and entitled to the same security and benefit under this Resolution as the Series A Bonds surrendered upon that exchange or transfer . Any Series A Bond surrendered to the Bond Registrar for payment , retirement, exchange, replacement or transfer shall be cancelled by the Bond Registrar . The District and the County may at any time deliver to the Bond Registrar for cancellation any previously authenticated and delivered Series A Bonds that the District and the County may have acquired in any manner whatsoever, and those Series A Bonds shall be promptly cancelled by the Bond Registrar . Written reports of the surrender and cancellation of Series A Bonds shall be made to the District and the County by the Bond Registrar at least twice each calendar year . The cancelled Series A Bonds shall be retained for a period of time and then returned to the District or destroyed by the Bond Registrar as directed by the District . 6 3196001/1 Neither the District, the County nor the Bond Registrar will be required (a) to issue or transfer any Series A Bonds during a period beginning with the opening of business on the 15th. business day next preceding either any Interest Payment Date or any date of selection of Series A Bonds to be redeemed and ending with the close of business on the Interest Payment Date or day on which the applicable notice of redemption is given or (b) to transfer any Series A Bonds which have been selected or called for redemption in whole or in part . SECTION 13 . The Series A ,Bonds shall be in substantially the following form, allowing those officials executing the Series A Bonds to make the insertions and deletions necessary to conform the Series A Bonds to this Resolution and the Contract of Purchase . (Form of Face of Bond) REGISTERED NO. $ LIBERTY UNION HIGH SCHOOL DISTRICT CONTRA COSTA COUNTY, CALIFORNIA 1988 GENERAL OBLIGATION BOND, SERIES -A INTEREST RATE: MATURITY DATE: DATED AS OF: CUSIP per annum 1 , 1 , 198_ REGISTERED OWNER: PRINCIPAL AMOUNT : The Liberty Union High School District (the "District" ) in Contra Costa County, California (the "County" ) , for value received, promises to pay to the Registered Owner named above, or registered assigns , the Principal Amount on the Maturity Date, each as stated above, and interest thereon until the Principal Amount is paid or provided for at the ,Interest Rate stated above, on February 1 and August 1 of each year (the "Interest Payment Dates" ) , commencing February 1 , 1989 . This bond will bear interest from the Interest Payment Date next preceding the date of authentication hereof unless it is authenticated as of a day during the period from the 16th day of the month next preceding any Interest Payment Date to .the Interest Payment Date, inclusive, in which event it shall bear interest from such Interest Payment Date, or unless it is authenticated on or before January 15 , 1989 , in which event it shall bear interest from August 1 , 1988 . Principal and interest 3196001/1 are payable in lawful money of the United States of America, without deduction for the paying agent services , to the person in whose name . this bond (or , . if applicable, one or more predecessor bonds) is registered (the "Registered Owner" ) on the Register maintained by the Bond Registrar, initially The Bank of America National Trust and Savings Association, San Francisco, California . Principal is payable. upon presentation and surrender of this bond at the principal corporate trust office of the Bond Registrar . Interest is payable by check or draft mailed by the Bond Registrar on each Interest Payment Date to the owner of this bond (or one or more predecessor bonds) as shown and at the address appearing on the Register at the close of business on the 15th day of the calendar month next preceding that Interest Payment Date (the "Record Date" ) . REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE SIDE, WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. It is certified and recited that all acts and conditions required by the Constitution and laws of the State of California to exist, to occur and to be performed on to have been met precedent to and in the issuing of the bonds in order to make them legal , valid and binding general obligations of the District, have been performed and have been met in regular and due form as required by law; that payment in full for the bonds has been received; that no statutory or constitutional limitation on indebtedness or taxation has been exceeded in issuing the bonds; and that due provision has been made for levying and collecting ad valorem property taxes on all of the taxable property within the District in an amount sufficient to pay principal and interest when due, and for levying and collecting such taxes the full faith and credit of the District are hereby pledged. This bond shall not be valid or obligatory for any purpose and shall not be entitled to any security or benefit under the Bond Resolution (described on the reverse hereof) until the Certificate of Authentication below has been signed. 8 3196001/1 IN WITNESS WHEREOF, the Liberty Union High School District, Contra Costa County, California, has caused this bond to be executed on behalf of the District and in their official • capacities by the manual or facsimile signatures of the Chairman of .the Board of Supervisors of the County and the County Treasurer-Tax .Collector , and to be countersigned by the manual or facsimile signature of the Clerk of the Board of Supervisors of the County, and has caused the seal of the County to be affixed hereto, all as of the date stated above . [SEAL] CONTRA COSTA COUNTY, CALIFORNIA By: X Chairman, Board of Supervisors COUNTERSIGNED : Clerk, Board of Supervisors Treasurer-.Tax Collector 9 3196001/1 CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the Bond . Resolution referred to herein. Date of Registration and Authentication: Bond Registrar By: Authorized Representative 10 3196001/1 (Form of Reverse of Bond) This bond is one of a series of $5, 000 , 000 of bonds issued for the purpose of raising money for real property acquisition or improvements, including (a) the purchasing of. school lots; (b) the building. of school buildings; (c) the making of .alterations or additions to the school buildings; (d) the supplying of school buildings and grounds with furniture and equipment of a permanent nature, and to pay all necessary legal , financial , engineering and contingent costs in connection therewith under authority of and pursuant to the laws of the State of California, and the requisite two-thirds vote of the electors of the District cast at a special election held on June 7, 1988, upon the question of issuing bonds in the amount of $10 , 000, 000 and the resolution of the Board of Education of the District adopted on July 13 , 1988 (the ''District Resolution" ) and the resolution of the County Board of Supervisors adopted on July 19 , 1988 (the "Bond Resolution" ) . This bond and the issue of which this bond is one are payable as to both principal and interest from the proceeds of the levy of ad valorem taxes on all property subject to such taxes in the District, which taxes are unlimited as to rate or amount . The bonds of this issue are issuable only as fully registered bonds in the denominations of $5, 000 or any integral multiple thereof . This bond is exchangeable and transferable for bonds of other authorized denominations at the principal corporate trust office of the Bond Registrar, by the Registered Owner or by a person legally empowered to do so, upon presentation and surrender hereof to the Bond Registrar, together with a request for exchange or an assignment signed by the Registered Owner or by a person legally empowered to do so, in a form satisfactory to the Bond Registrar, all subject to the terms, limitations and conditions provided in the Bond Resolution. All fees and costs of transfer shall be paid by the transferor . The District , the County and the Bond Registrar may deem and treat the Registered Owner as the absolute owner of this bond for the purpose of receiving payment of or on account of principal or interest and for all other purposes, and neither the District, the County nor the Bond Registrar shall be affected by any notice to the contrary. The bonds maturing on or before August 1 , 1996, are non-callable. The bonds maturing on August 1 , 1997, or any time thereafter, are callable for redemption prior to their stated maturity date at the option of the District, in whole on any date, or in part on any Interest Payment Date, on or after August 1 , 1996, and may be redeemed prior to the maturity 11 3196001/1 thereof by payment of all principal , plus accrued interest to date of redemption, plus the payment of a premium (expressed as a percentage of the principal amount) , payable from any source lawfully available therefor , as follows : Redemption Date Redemption Premium August 1 , 1996 through July 31 , 1997 102 % August 1 , 1997 through July 31 , 1998 101% August 1 , 1998 through July 31 , 1999 101 August 1 , 1999 through July 31 , 2000 100% August 1 , 2000 through thereafter 100 If less than all of the bonds of any one maturity shall be called for redemption, the particular bonds or portions of bonds of such maturity to be redeemed shall be selected by lot by the District in such manner as the District in its discretion may determine; provided, however, that the portion of any bond to be redeemed shall be in the principal amount of $5, 000 or some multiple thereof and that, in selecting bonds for redemption, the Bond Registrar shall treat each bond as representing that number of bonds which is obtained by dividing the principal amount of such bond by $5, 000 . If less than all of the bonds stated to mature on different dates shall be called for redemption, the particular bonds or portions thereof to be redeemed shall be called in the inverse order of their maturities . The Bond Registrar shall give notice of the redemption of the bonds at the expense of the District . Such notice shall specify: (a) that the bonds or a designated portion thereof are to be redeemed, (b) the numbers and CUSIP numbers of the bonds to be redeemed, (c) the date of notice and� the date of redemption, (d) the place or places where the redemption will be made, and (e) descriptive information regarding the bonds including the dated date, interest rate and stated maturity date. Such notice shall further state that on the specified date there shall become due and payable upon each bond to be redeemed, the portion of the principal amount of such bond to be redeemed, together with interest accrued to said date, and redemption premium, if any, and that from and after such date interest with respect thereto shall cease to accrue and be payable . Notice of redemption shall be by registered or otherwise secured mail or delivery service, postage prepaid, to the original purchaser of the bonds , or if the original purchaser is a syndicate, to the managing member of such syndicate, to a municipal registered securities depository and to a national information service that disseminates securities redemption 12 3196001/1 notices , and, by first class mail, .postage prepaid, to the District, the County and the respective Owners of any registered bonds designated for redemption at their addresses .. appearing on the bond registration books, in every case at least 30 days, but not more than 60 days , prior to the . redemption date; provided that neither failure to receive such notice nor any defect in any notice so mailed shall affect the sufficiency of the proceedings for the redemption of such bonds . Neither the District, the County nor the Bond Registrar will be required (a) to issue or transfer any bond during a period beginning with the opening of business on the 15th business day next preceding either any Interest Payment Date or any date of selection of bonds to be redeemed and ending with the close of business on the Interest Payment Date or day on which the applicable notice of redemption is given or (b) to transfer any bond which has been selected or called for redemption in whole or in part . Reference is made to the Bond Resolution for a more complete description of the provisions , among others , with respect to the nature and extent of the security for the bonds of this series, the rights , duties and obligations of the District, the County, the Bond Registrar and the Registered Owners , and the terms and conditions upon which the bonds are issued and secured. The owner of this bond assents , by acceptance hereof, to all of the provisions of the Bond Resolution. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATION By the District Resolution duly adopted by the Board of Education of the Liberty Union High School District and the Bond Resolution duly adopted by the Board of Supervisors of Contra Costa County, this bond has been designated as a "qualified tax-exempt obligation" within the meaning of Section 265(b) (3 ) of the Internal Revenue Code of 1986, as amended. 13 3196001/1 ASSIGNMENT For value received, the undersigned sells, assigns and transfers to (print or typewrite name, address and zip code of .Transferee) : this bond .and . irrevocably constitutes and appoints attorney to transfer this bond on the books for registration thereof , with full power of substitution in the premises . Dated: Signature Guaranteed: Commercial bank, trust company or member of a national securities exchange . Notice: The assignor ' s signature to this assignment must correspond with the name as it appears upon the face of the within bond in every particular , without alteration or any change whatever . 14 3196001/1 LEGAL OPINION The following is a true copy of the opinion rendered by Brown & Wood in .connection with the issuance . of , and dated as of the date of .the original delivery of, the bonds . A signed copy is on file in my. office . (Facsimile) Clerk Board of Supervisors (Form Of Legal Opinion) SECTION 14 . The proper officials of the County shall cause the Series A Bonds to be prepared and, following their sale, shall have the Series A Bonds signed and delivered, together with a true transcript of proceedings with reference to the issuance of the Series A Bonds , to the original purchaser upon payment of the purchase price in federal funds . SECTION 15 . The proceeds from the sale of the Series A Bonds , to the extent of the principal amount thereof , shall be paid to the County to the credit of the fund hereby created and established and to be known as the "1988 Liberty Union High School District Building Fund" of the District, shall be kept separate and distinct from all other District and County funds, and those proceeds shall be used solely for the purpose for which the Series A Bonds are being issued and provided further that such proceeds shall be applied solely to authorized purposes which relate to the acquisition or improvement of real property. The accrued interest and any premium received by the County from the sale of the Series A Bonds shall be kept separate and apart in the fund hereby created and established and to be designated as the " 1988 Liberty Union High School District General Obligation Bond Interest and Sinking Fund" (the "Debt Service Fund" ) for the Series A Bonds and used only for payments of principal and interest on the Series A Bonds . Interest earned on the investment of monies held in the Debt Service Fund shall be retained in the Debt Service Fund and used by the County to pay principal and interest on the Series A Bonds when due . Interest earned on the investment of monies held in the Building Fund shall be retained in the building fund. Any excess proceeds of the Series A Bonds not needed for the authorized purposes set forth herein for which the Series A Bonds are being issued shall be transferred to the Debt Service Fund and .applied to the payment of principal and interest on the Series A Bonds . If, after payment in full of the Series A Bonds , there remain excess proceeds , any such excess amounts shall be transferred to the general fund of the District . 15 3196001/1