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(ii) <br /> <br />Debt Service Account. To the Debt Service Account there are hereby <br />pledged and irrevocably appropriated and there shall be credited: (1) the <br />accrued interest on the Bonds paid by the Purchaser on the actual date of <br />settlement thereof, together with an additional $ of the proceeds <br />of the Bonds, all of which shall be used for the payment of the interest first <br />coming due on the Bonds; (2) the "Available Tax Increments" and other <br />revenues described in the Tax Increment Pledge Agreement described in <br />paragraph 25 hereof, provided that the amounts thereof so pledged to the <br />payment of the Bonds shall not exceed the amounts necessary from time to <br />time, when combined with other funds available for such purposes in the <br />Debt Service Account, to pay the principal of and interest on the Bonds, <br />when due; (3) all collections of any ad valorem taxes which may hereafter be <br />levied for the payment of the Bonds; (4) all investment earnings on funds <br />held in the Debt Service Account; and (5) any and all other moneys which are <br />properly available and which are appropriated by the Council to the Debt <br />Service Account. The foregoing funds are hereby pledged to the Debt <br />Service Account, but only in such amounts and at such times as may be <br />necessary, together with other available funds therein (and the same shall be <br />used solely), to pay the principal of and interest on the Bonds, when due. <br /> <br /> No portion of the proceeds of the Bonds shall be used directly or <br />indirectly to acquire higher yielding investments or to replace funds which <br />were used directly or indirectly to acquire higher yielding investments, except <br />for an available and reasonable "temporary period" until such proceeds are <br />needed for the purpose for which the Bonds were issued, and for any <br />available "minor portion." To this effect, any proceeds of the Bonds and any <br />sums from time to time held in the Debt Service Account (or any other City <br />account which will be used to pay principal and interest to become due on the <br />Bonds) in excess of amounts which under then-applicable federal arbitrage <br />regulations may be invested without regard to yield shall not be invested at <br />a yield in excess of the applicable yield restrictions imposed by the arbitrage <br />regulations on such investments after taking into account any applicable <br />"temporary periods" or "minor portion" made available under the federal <br />arbitrage regulations. In addition, the proceeds of the Bonds and money in <br />the 'Fund shall not be invested in obligations or deposits issued by, <br />guaranteed by or insured by the United States or any agency or <br />instrumentality thereof if and to the extent that such investment would cause <br />the Bonds to be "federally guaranteed" within the meaning of Section 149(b) <br />of the Internal Revenue Code of 1986, as amended, and regulations, rulings <br />and decisions thereunder (the "Code"). <br /> <br />16. <br /> <br />Coverage Test. It is hereby found and determined that the revenues provided herein <br />for the payment of the Bonds will be available in amounts sufficient to produce at <br /> <br />1217682.1 19 <br /> <br /> <br />