19 - Issuance and Sale of City of Paris Waterworks and Sewer System Revenue Bonds Series 2022 (2)

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used in the manner described in Section 10 of this Ordinance. (b) The City may place proceeds of the Bonds (including investment earnings thereon) and amounts deposited into the Bond Fund in investments authorized by the Public Funds Investment Act, Chapter 2256, Texas Government Code, as amended; provided, however, that the City hereby covenants that the proceeds of the sale of the Bonds will be used as soon as practicable for the purposes for which the Bonds are issued. Any securities or obligations in which money is so invested shall be kept and held in trust for the benefit of the Owners and shall be sold and the proceeds of sale shall be timely applied to the making of all payments required to be made from the fund from which the investment was made. (c) Investment Income. Interest and other income derived from the investment of the funds deposited pursuant to the provisions hereof shall be credited to the fund or account where deposited until the purposes for which the Bonds are issued is completed; thereafter, to the extent such interest and income are present, such interest and income shall be deposited to the Bond Fund. Notwithstanding the foregoing, interest earnings derived from the proceeds that are deposited to the Construction Fund shall be retained therein and used for the purposes for which the Bonds were issued, provided that after the completion of such purposes, any amounts remaining therein shall be deposited to the Bond Fund. (d) Usq.,of Premium. The [net] premium received from the sale of the Bonds shall be applied as follows: (i) the sum of $ shall be applied to pay the underwriter's discount referenced above; the sum of $ shall be applied to pay the costs of issuance of the Bonds (with any excess to be deposited into the Bond Fund); (ii) the sum of $ shall be deposited to the Reserve Fund; and (iv) the sum of $ shall be deposited to the Construction Fund. (e) 1osit of Bond Proceeds. Proceeds from the sale of the Bonds shall be applied as follows: (i) the sum of $ shall be applied to pay the costs of issuance of the Bonds, including underwriter's discount, with any excess to be deposited into the Bond Fund; (ii) the sum of $ shall be deposited to the Reserve Fund; and (iii) the sum of $ shall be deposited to the Construction Fund. (f) Sec urit of Funds. All deposits authorized or required by this Ordinance shall be secured to the fullest extent required by law for the security of public funds. (g) Interest Earnins. Notwithstanding anything herein to the contrary, any interest earnings on Bond proceeds that are required to be rebated to the United States of America pursuant to this Ordinance in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for purposes of this Section. Section 29. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any persons or circumstances is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portion of this Ordinance, despite such invalidity, which remaining portions shall remain in full force and effect. 32