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There is hereby pledged and there shall be credited <br />to the Debt Service Account (a) all collections of special <br />assessments herein covenanted to be levied and either initially <br />credited to the Construction Account and required to pay any <br />principal and interest due on the bonds or collected subsequent <br />to the completion of the improvements and payment of the costs <br />thereof; (b) all accrued interest received upon delivery of the <br />bonds, (c) all funds paid for the bonds in excess of $167,000, <br />(d) capitalized interest in the amount of $18,000 (subject to <br />such adjustments as are appropriate to provide sufficient funds <br />to pay interest due on the bonds on or before October 1, 1982), <br />(e) any collections of all taxes which may hereafter be levied <br />for the payment the bonds; and (f) all funds remaining in the <br />Construction Account after completion of the improvements and <br />payment of the costs thereof, not so transferred to the account <br />of another improvement, provided however, that upon termination <br />of the Debt Service Account all collections of such special <br />assessments and taxes herein covenanted to be levied and any <br />other sums pledged and appropriated to the Debt Service Account <br />and not used for the payment of said bonds and interest shall <br />be pledged and credited to the extent necessary to the Debt <br />Service Account of any definitive improvement bonds or <br />additional temporary improvement bonds issued to pay in whole <br />or part said bonds. <br />The Debt Service Account herein created shall be used <br />solely to pay the principal and interest and any premiums for <br />redemption of the bonds issued hereunder and any other general <br />obligation bonds of the City hereafter issued by the City and <br />made payable from said account as provided by law. Any sums <br />from time to time held in the Debt Service Account (or any <br />other City account which will be used to pay principal or <br />interest to become due on the bonds) in excess of amounts which <br />under the applicable federal arbitrage regulations may be <br />invested without regard as to yield shall not be invested at a <br />yield in excess of the applicable yield restrictions imposed by <br />said arbitrage regulations on such investments. <br />9. It is hereby determined that no less than 20% of <br />the cost to the City of each improvement financed hereunder <br />within the meaning of Minnesota Statutes, Section 475.58, <br />Subdivision 1(3), shall be paid by special assessments to be <br />levied against every assessable lot, piece and parcel of land <br />'benefited by the improvements. The City hereby covenants and <br />agrees that it will let all construction contracts not here- <br />tofore let within one year after ordering each improvement <br />financed hereunder unless the resolution ordering the improve- <br />ment specifies a different time limit for the letting of <br />construction contracts and will do and perform as soon as they <br />may be done, all acts and things necessary for the final and <br />valid levy of such special assessments, and in the event that <br />-6- <br />