The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-06-15

| 1910 1000 1915 1900
(h) Security. General obligation
bonds of the Borrower payable as
to both principal and interest
from ad valorem taxes which
may be levied within the limits
prescribed by law (Which limits
shall not be less than $40 per
annum per capita of the Bor-
rower's population) on all the
taxable property within the ter
ritorial limits of the Borrower.
Cd Place and Medium of Payment.
At the Office of the Treasurer of
the City of Ely, Minnesota, in
such funds as are, on the re-
spective dates of payment of the
principal of and interest on the
Bonds, legal tender for debts due
the United States of America
Cd Denomination. $1,000.
3. Form, Text and Sample of Bond.
The Bonds shall be in form and text
satisfactory to the Legal Division of the
Federal Emergency Administration of
Public Works, (herein called Counsel
for the Conveniently Before the
Bonds are prepared, the Borrower shall
submit sample or specimen bond, with
coupons for approval by Counsel for the
Government.
4. Method of Taking Up Bonds. The
Bonds shall be taken up and paid for
in blocks from time to time as funds
are needed for the project, or the entire
issue may be taken up and paid for by
the Government at one time, in the
discretion of the Finance Division of
the Federal Emergency Administration
of Public Works (herein called the
Finance Division'D.
S. Amount Of Bonds to be Taken Up.
The Government shall be under no OBJ
legation to take up and pay for Bonds
beyond the amount which, together
with Other Funds, and the amount to
be paid to the Borrower on account of
the Grant as provided in this agree
ment, shall be necessary, in the judg-
ment of the Engineering Division of the
Federal Emergency Administration of
Public Works Cherein called the en-
cheering DivisionO. to complete the
Project. In case any OF the ,onds are
sold to purchasers other than the
Government, the principal amount of
Bonds which the Government is OBJ
ligated TO take UP and pay for shall be
correspondingly reduced.
6. Deposit of Bond Proceeds and
Grant; Retirement Fund. The Bor-
rover will pay all accrued interest which
it receives from the sale of the Bonds
at the time of the payment therefor
(and any payment which may be made
on account of the Grant under the pro-
visions Of Paragraph IL, PART TWO,
hereof, into an interest and bond re-
tirement fund account. It win deposit
the remaining proceeds from the sale
of the Bonds and any payments made
on account of the Grant in a bank or
banks which are members of the Fed
eral Reserve System, In special ac-
count or accounts, each Of such special
accounts to be continuously secured by
pledge to the Borrower of direct OBJ
legations of the United States of Ameri-
ca having an aggregate market value,
exclusive of accrued interest, at all
times at least equal to the balance on
deposit in each such account. Such
securities viii either be deposited with
the Borrower or be held by trustee
or agent satisfactory to the Finance
Division, provided that the trust or
agency agreement is satisfactory to
Counsel for the Government Provided,
however, that at the option of the FL
nance Division such special account or
accounts may be secured by surety
bond, or bonds which shall be in form,
sufficiency and substance satisfactory
to Counsel for the Government Any
balance or balances remaining unex-
pended in such special account or ac-I
counts after the completion of the Pro
jet and which are not required to meet
unpaid obligations incurred in con-
nection with the construction of the
Project shall be paid into said interest
and bond retirement fund account, and,
together with the accrued interest
aforesaid. shall be used solely for the
payment of the interest on and the
principal of the Bonds, or said un-
expended balance or balances may be
used for the purchase of such of the
Bonds as are then outstanding at a.
price, exclusive Of accrued INTEREST,"
not exceeding the principal amount
thereof. Any Bonds so purchased shall
be cancelled and no additional bonds
shall be issued in lieu thereof Such
Bonds, when cancelled. shall be sub
mitted to the Government for recording.
!. Disbursement Of Bond Proceeds
and Grant. The Borrower win expend
the funds In such special account or
accounts only for such purposes as shall
have been previously specified in
certificates accompanying the requisi-
lions for such funds filed with the
Government and approved by Counsel
for the Government, or such funds shall
be used for purchasing Bonds as pro-