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e e e ,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 Net Revenues adequate, together with other sources of funding available to the Debt Service Account, to pay all principal of and interest on the Bonds, when due. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the Net Revenues of the city's municipal water system for the payment of other or additional obligations of the City, provided that it has first been determined that the estimated Net Revenues of the City's municipal water system will be sufficient, in addition to all other sources, for the payment of the Bonds and such additional obligations, and any such pledge and appropriation of said Net Revenues may be made superior or subordinate to, or on a parity with, the pledge and appropriation herein. With respect to any currently outstanding obligations of the City which are payable from the Net Revenues, 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 other obligations. 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 (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent (5%) of the "issue price" of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Capital Account or Debt Service Account 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 said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. 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 or any Additional Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 276405.1 16