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<br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />No portion of the proceeds of the Bonds shall be used directly <br />or indirectly to acquire higher yielding investments or to replace <br />funds which were used directly or indirectly to acquire higher <br />yielding investments, except for an available and reasonable <br />"temporary period" until such proceeds are needed for the purpose <br />for which the Bonds were issued, and for any available "minor <br />portion." To this effect, any proceeds of the Bonds and any sums <br />from time to time held in the Escrow Account and Debt Service <br />Account (or any other City account which will be used to pay <br />principal and interest to become due on the Bonds) in excess of <br />amounts which under then-applicable federal arbitrage regulations <br />may be invested without regard to yield shall not be invested at a <br />yield in excess of the applicable yield restrictions imposed by the <br />arbitrage regulations on such investments after taking into account <br />any applicable "temporary periods" or "minor portion" made <br />available under the federal arbitrage regulations. In addition, <br />the proceeds of the Bonds and money in the Fund shall not be <br />invested in obligations or deposits issued by, guaranteed by or <br />insured by the united States or any agency or instrumentality <br />thereof if and to the extent that such investment would cause the <br />Bonds to be "federally guaranteed" within the meaning of Section <br />149(b) of the federal Internal Revenue Code of 1986, as amended <br />(the "Code"). <br /> <br />16. Coveraqe Test: Certificate of Reqistration. It is hereby <br />found and determined that the revenues pledged herein for. the <br />paYment of the Bonds will be available in amounts sufficient to <br />produce at least five percent (5%) in excess of the amount needed <br />to meet, when due, the principal and interest paYments on the <br />Bonds. <br /> <br />The City Clerk is hereby directed to file a certified copy of <br />this Resolution with the County Auditor Sherburne County and to <br />obtain the certificate of said official required by Minnesota <br />Statutes, Section 475.63. <br /> <br />17. Cancellation or Adjustment of Tax Levies Made for Prior <br />Bonds. Pursuant to Section 4.03 of the Council's Resolution No. <br />85-39, adopted on August 12, 1985, in authorizing the issuance of <br />the 1985A Bonds, the City imposed certain tax levies (the "1985A <br />Bond Levies") to provide debt service for the 1985A Bonds. In <br />consideration of the issuance of the Bonds and the provisions made <br />pursuant to this Resolution and the Escrow Agreement for the <br />paYment on February 1, 1994, of all principal of the 1985A Bonds <br />which matures after said date, the 1985A Bond Levies are hereby <br />cancelled. <br /> <br />18. General Obliqation Pledge. For the prompt and full <br />paYment of the principal of and interest on the Bonds, as the same <br />respectively become due, the full faith and credit and taxing <br />powers of the City shall be and are hereby irrevocably pledged. If <br />the balance in the Debt Service Account is ever insufficient to pay <br />all principal and interest then due on the Bonds, the deficiency <br />shall be promptly paid out of any other funds of the City which are <br />available for such purpose, and such other funds may be reimbursed <br /> <br />235883 <br /> <br />17 <br />