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ARTICLE III ISSUE OF NOTE Section 3.01. Sale and Delivery of Note. At any time after the adoption of this Resolution the City may sell and deliver a Note to the Bank in accordance with the terms of a purchase agreement presented by the Bank. Section 3.02. Application of Proceeds of Sale of Note. The proceeds received by the City from the sale of the Note shall be deposited into the Construction Fund established pursuant to Section 3.03. Section 3.03. Construction Fund. There is hereby created a fund to be designated the "City of Santa Aha 1982 Industrial Revenue Note (Mitsubishi Consumer Electronics America, Inc.) Construction Fund" {herein referred to as the "Construction Fund"), which shall be held by the Bank in trust and applied to the payment of the Costs of the Project. Before any payment is made from the Construction Fund by the Sank, there shall be filed with the Bank a requisition conforming to the requirements of Section 5.02 of the Agreement, stating with respect to each payment to be made (al the requisition number; (b) the name and address of the person, firm or corporation to whom payment is due; {c) the amount to be paid; (d) that each obligation mentioned therein has been properly incurred for a Cost of the Project and is a proper charge against the Construction Fund; and (e) if such payment is a reimbursement to the Participating Party for costs or expenses of the Participating Party incurred by reason of work performed or supervised by officers or employees of the Participating Party or any of its subsidiaries or affiliates, that the amount to be paid does not exceed the actual cost thereof to the Participating Party or any of its subsidiaries or affiliates and that such costs or expenses are to be treated on its books as a capital expenditure in accordance with generally accepted accounting principles applied on a consistent basis. Each such requisition shall be sufficient evidence to the Bank of the facts stated therein. Upon receipt of each such requisition, the Bank shall pay the amount set forth therein as directed by the terms thereof. Upon the receipt by the Bank of a certificate conforming to the requirements of Section 5.04(d) of the Agreement, and after payment of costs payable from the Construction Fund or provision satisfactory to the Bank having been made for payment of such costs not yet due, the Bank shall transfer any remaining balance in the Construction Fund to the Note Fund established pursuant to