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in the Refunding Account, the Capital 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 149(b) of the Internal Revenue Code of 1986, as amended, and regulations, rulings and decisions thereunder (the "Code"). 16. Coverage Test; Certificate of Registration. It is hereby found and determined that the Net Revenues pledged herein for the payment of the Bonds will be available in amounts sufficient to produce at least five percent (5%) in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds. The City shall file a certified copy of this Resolution with the office of the County Auditor of Sherburne County and obtain the certificate of said office required by Minnesota Statutes, Section 475.63. 17. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith and credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. To the extent that it shall ever be necessary to provide full and timely payment of the debt service on the Bonds, the City shall levy an ad valorem tax upon all taxable property within the City sufficient for such purposes. 18. Prior Bonds; Security. Until retirement and full payment of the Prior Bonds, all provisions heretofore made for the security thereof shall be observed by the City. 19. Redemption of Refunded Bonds. The outstanding Prior Bonds maturing in 2005 and thereafter shall be redeemed and prepaid on the Refunding Date (as described in paragraph 3 of this Resolution), and prior to said date, the paying agent/registrars for the Prior Bonds are hereby authorized and directed to cause notice of said redemption to be published and to be given to the owners of the Prior Bonds in such manner as may be required by law and by the terms of the Prior Bonds. 20. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial conditioh and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all 1580841vl 20