6.3.B. SR 06-16-2008 - Laserfiche WebLink

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No portion of the proceeds of the Note 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 Note was issued, and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Note or $100,000. To this effect, any proceeds of the Note and any sums from time to time held in the MPFA Construction Account or MPFA Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the Note) in excess of amounts which under the 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 Note to be "federally guaranteed" within the meaning of Section 149(b) of the Federal Internal Revenue Code of 1986, as amended (the "Code"). The City shall observe the covenants of paragraphs 16, 17 and 18 of this resolution and of Article IV of the Project Loan Agreement with regard to the Fund. 10. Restoration of Moneys. If any moneys of the City other than moneys received from the City State-Aid Street Fund are used for the payment of the Note, the moneys so used shall be restored to the appropriate fund from the moneys next received by the City from the Construction or Maintenance Account in the City's State-Aid Street Fund which are not required to be paid into a debt service account for other obligations. 11. Pledge of Allotted Moneys. There is hereby irrevocably pledged and appropriated to the MPFA Debt Service Account moneys allotted or to be allotted to the City from its account in the City's State-Aid Street Fund in an amount sufficient to pay the principal of and interest on the Note as they respectively become due. 12. Covera eg Test. It is hereby determined and reasonably anticipated that the estimated collections of the moneys to be available from the City's State-Aid Street Fund and to be deposited to the MPFA Debt Service Account will produce at least five percent in excess of the amount needed to meet, when due, the principal of and interest on the Note. 13. General Obligation Pledge. The full faith, credit and taxing powers of the City shall be, and are hereby, irrevocably pledged for the prompt and full payment of the principal and interest on the Note as the same respectively become due. If the balance in the MPFA Debt Service Account shall at any time be insufficient to pay such principal and interest when due on the Note payable from the MPFA Debt Service Account, the City covenants and agrees to levy, without limitation as to rate or amount, an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as they become due. If the balance in the MPFA Debt Service Account is ever insufficient to pay all principal and interest then due on the Note and any other obligations payable therefrom, 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 2170696v1 9