Resolution 12-22 - Laserfiche WebLink

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restrictions imposed by the arbitrage regulations on such investments after taking into account `- any applicable "temporary periods" or"minor portion" made available under the federal arbitrage regulations. In addition,the proceeds of the Bonds and money in the Debt Service Account 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 to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended(the "Code"). 18. Coverage Test; Pledge of Net Revenues and Excess Net Revenues. It is hereby found, determined and declared that the net revenues of the System, are sufficient in an amount to pay when due the principal and interest on the Bonds and a sum at least five percent in excess thereof, and the net revenues of the System are hereby pledged and shall be applied for that purpose, but solely to the extent required to meet,together with other pledged sums,the principal and interest requirements of the Bonds. As used herein the term net revenues means the gross revenues derived by the City from the operation of the System, including all charges for service, use, availability, and connection to the System, and all monies received from the sale of any facilities or equipment of the System or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the System. Excess net revenues of the System in excess of those required for the foregoing may be used for any proper purpose. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the 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 the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. 19. Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075,the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect charges for the service, use, availability and connection to the System at the times and in the amounts required to produce net revenues (together with other funds herein pledged) adequate to pay all principal and interest when due on the Bonds. 20. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the net revenues of the System appropriated and pledged to the payment of the principal and interest on the Bonds, together with other funds irrevocably appropriated to the Payment Account or the Debt Service Account, shall at any time be insufficient to pay the principal and interest when due,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 it becomes due. If the balance in the Payment Account or Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom,the deficiency shall be promptly paid out \-- of any other accounts of the City which are available for such purpose, and such other funds may 16 4767714v1