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any balance remaining in the Series 2001 Public Facility Lease Revenue Bond Fund created for <br />the Prior 2001 Bonds; and (vi) all investment earnings on funds held in the Debt Service <br />Account; and (vii) any and all other moneys which are properly available and are appropriated <br />by the governing body of the City to the Debt Service Account. The Debt Service Account shall <br />be used solely to pay the principal and interest and any premiums for redemption of the Bonds <br />and any other general obligation bonds of the City hereafter issued by the City and made payable <br />from said account as provided by law. <br />No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire <br />higher yielding investments or to replace funds which were used directly or indirectly to acquire <br />higher yielding investments, except (1) for a reasonable temporary period until such proceeds are <br />needed for the purpose for which the Bonds were issued and (2) in addition to the above in an <br />amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To <br />this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service <br />Account (or any other City account which will be used to pay principal or interest to become due <br />on the bonds payable therefrom) in excess of amounts which under then applicable federal <br />arbitrage regulations may be invested without regard to yield shall not be invested at a yield in <br />excess of the applicable yield restrictions imposed by said arbitrage regulations on such <br />investments after taking into account any applicable "temporary periods" or "minor portion" <br />made available under the federal arbitrage regulations. Money in the Fund shall not be invested <br />in obligations or deposits issued by, guaranteed by or insured by the United States or any agency <br />or instrumentality thereof if and to the extent that such investment would cause the Bonds to be <br />"federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of <br />1986, as amended (the "Code"). <br />17. Tax Levy, Coverage Test To provide moneys for payment of the principal and <br />interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct <br />annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of <br />other general property taxes in the City for the years and in the amounts as follows: <br />Year of Tax Levy Year of Tax Collection Amount <br />2009-2016 2010-2017 $1,515,648.75 <br />The tax levies are such that if collected in full they, together with other revenues herein <br />pledged for the payment of the Bonds, will produce at least five percent in excess of the amount <br />needed to meet when due the principal and interest payments on the Bonds. The tax levies shall <br />be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City <br />reserves the right and power to reduce the levies in the manner and to the extent permitted by <br />Minnesota Statutes, Section 475.61, Subdivision 3. <br />18. General Obligation Pledge. For the prompt and full payment of the principal and <br />interest on the Bonds, as the same respectively become due, the full faith, credit and taxing <br />powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt <br />Service Account is ever insufficient to pay all principal and interest then due on the Bonds and <br />any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds <br />of the City which are available for such purpose, and such other funds may be reimbursed with <br />15 <br />2582009v1 <br />