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. . . of any facilities or equipment of said system or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining said system. If any payment of principal or interest on the Bonds shall become due when there are not sufficient funds pledged for such purposes in the Debt Service Account to pay the same, the City Finance Director shall pay such principal or interest from the general fund or other available fund of the City, and such fund shall be reimbursed for such advances from the proceeds of the Net Revenues, when collected. The City hereby covenants that it will impose and collect charges for the service, use, and availability of and connection to the City's municipal water system at the times and in the amounts required to produce such Net Revenues adequate, together with other sources of funding available for such purposes, to pay in a full and timely manner all principal of and interest on the Bonds, and on any and all other obligations which are or may become payable in whole or in part from such Net Revenues. Provided such debt service coverage is found to exist (and the Council hereby makes said finding with respect to the Bonds), the City may issue additional obligations secured in whole or in part from such Net Revenues, whose pledge to any such new obligations may be made superior or subordinate to, or on a parity with, the pledges of such Net Revenues made herein to the Bonds. The City has heretofore issued and currently has outstanding certain general obligations of the City which are payable from certain of the Net Revenues of the municipal water system, and the Council hereby determines that the estimated Net Revenues will be sufficient, in addition to all other sources available for such purposes, for the payment of the Bonds and all such additional obligations, and accordingly the pledges and appropriations of Net Revenues to the payment of the Bonds pursuant to this Resolution are hereby made on a parity with any and all such prior pledges of Net Revenues. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except for an available and reasonable "temporary period" until such proceeds are needed for the purpose for which the Bonds were issued, and for any available "minor portion." To this effect, any proceeds of the Bonds and any sums from time to time held in the Refunding Account and Debt Service Account (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section l49(b) of the Internal Revenue Code of 1986, as amended, and regulations, rulings and decisions thereunder (the "Code"). 17. 105% Debt Service Coverage. It is hereby determined that the estimated collections of the revenues dedicated to the Debt Service Account pursuant to paragraph l6(ii) of this Resolution would produce at least 5% in excess of the amount needed to meet, when due, the principal of and interest on the Bonds. The City shall file a certified copy of this Resolution with 1448297vl 18