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virtue of regularly scheduled debt service or prior <br />redemption. The moneys in the Refunding Account shall be <br />used solely for the purposes herein set forth and for no <br />other purpose, except that any surplus in the Refunding <br />Account shall be remitted to the City. Such Other Funds, if <br />any, as may be required to fully fund the Refunding Account <br />as described above are hereby appropriated for said purpose. <br /> <br /> (ii) Debt Service Account. To the Debt Service Account <br />there are hereby pledged and irrevocably appropriated and <br />there shall be credited: (1) all accrued interest and unused <br />discount received upon delivery of the Bonds which is not <br />then deposited into the Refunding Account; (2) any balance <br />remaining on February 1, 2001, after payment thereon of all <br />of the principal of and interest on all of the Prior Bonds, <br />in the debt service account created for and allocated to the <br />Prior Bonds pursuant to Section 4 of the Council's <br />resolution adopted on June 1, 1992, in connection with the <br />issuance of the Prior Bonds; (3) special assessments levied <br />by the City for the Improvements, but only in such amounts <br />as shall be necessary, together with other monies in the <br />Debt Service Account and available for such purposes, to <br />pay, when due, the principal of and interest on the Bonds; <br />(4) all collections of any ad valorem taxes hereafter levied <br />for the payment of the Bonds; (5) all investment earnings on <br />funds held in the Debt Service Account; and (6) any amounts <br />received by the City upon termination of the Refunding <br />Account. The foregoing funds are hereby pledged to the Debt <br />Service Account, but only in such amounts and at such times <br />as may be necessary, together with other available funds <br />therein (and the same shall be used solely), to pay the <br />principal of and interest on the Bonds, when due. <br /> <br /> No portion of the proceeds of the Bonds shall be used <br />directly or indirectly to acquire higher yielding investments or <br />to replace funds which were used directly or indirectly to <br />acquire higher yielding investments, except (1) for a reasonable <br />temporary period until such proceeds are needed for the purpose <br />for which the Bonds were issued and (2) in addition to the above <br />in an amount not greater than any applicable "minor portion" <br />which may be available for the Bonds. To this effect, any <br />proceeds of the Bonds and any sums from time to time held in the <br />Debt Service Account in excess of amounts which under <br />then-applicable federal arbitrage regulations may be invested <br />without regard to yield shall not be invested at a yield in <br />excess of the applicable yield restrictions imposed by said <br />arbitrage regulations on such investments after taking into <br />account any applicable "temporary periods" or "minor portion" <br />made available under the federal arbitrage regulations. Money in <br />the Fund shall not be invested in obligations or deposits issued <br />by, guaranteed by or insured by the United States or any agency <br />or instrumentality thereof if and to the extent that such <br />investment would cause the Bonds or any Additional Bonds to be <br />"federally guaranteed" within the meaning of Section 149(b) of <br /> <br />1218477.1 <br /> <br />20 <br /> <br /> <br />