5.1 Plow Truck Equipment Certificate

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has set aside and expects to invest or maintain at a yield greater than the yield on the Certificate for the purpose of paying debt service on the Certificate. 8. Debt Service Account: Bona Fide Debt Service Fund; Minor Portion; Temporary Periods;Yield. The Debt Service Account serves two functions: (i)a bona fide debt service fund (within the meaning of Section 1.148-1(b)of the Regulations)which is used primarily to achieve a proper matching of revenues and principal and interest payments within each Bond Year and is depleted at least once a Bond Year except for a reasonable carryover amount not to exceed the greater of the earnings on the Debt Service Account for the immediately preceding Bond Year or one-twelfth of principal and interest payments on the Certificate for the immediately preceding Bond Year, and (ii) a sinking fund (within the meaning of Section 1.148-1(c)(2) of the Regulations), and each such function shall be treated for the purposes hereof as if it occurred in a separate account. Amounts deposited in the Debt Service Account which are to be used to pay debt service on the Certificate within twelve months of their receipt by the City (or which are a reasonable carryover amount with respect thereto) will be invested without regard to yield for a temporary period not longer than thirteen months. Receipts in the Debt Service Account which will not be used to pay debt service on the Certificate within thirteen months of their receipt will be invested without regard to yield to the extent they do not exceed the "minor portion", which is an amount equal to the lesser of$100,000 or five percent of the Net Sale Proceeds of the Certificate. Sale Proceeds of the Certificate are the issue price of the Certificate less accrued interest. All receipts in the Debt Service Account may be invested without regard to yield for a temporary period of thirty days from receipt, and investment earnings on such sums may be invested without regard to yield for a longer temporary period of one year from receipt. Amounts not entitled to a temporary period or within said minor portion will not be invested at a yield which is materially higher than the yield on the Certificate, or will be invested without regard to yield in tax-exempt bonds as defined in Section 150(a)(6) of the Code, being obligations the interest on which is excluded from gross income under Section 103(a)of the Code. 9. Yield Determination; Materially Higher. The yield on the Certificate is based on the issue price paid by Bank of Zumbrota for the Certificate, and has been calculated to be 2.3971%; this yield on the Certificate will be recalculated if and as required by the Code or the Regulations. A "materially higher" yield is defined at Section 1.148-2(d)(2) of the Regulations and is generally one-eighth of one percent(0.125%). 10. Rebate. The City is a small issuer not subject to the rebate requirement imposed by Section 148(f)of the Code by reason of issuing(together with all subordinate entities thereof, and all entities treated as one with the City) less than $5,000,000 of tax exempt governmental obligations during the calendar year as provided in Section 148(f)(4)(D)of the Code. 11. Intentional Acts. The City shall not take any deliberate,intentional action after the date hereof to earn arbitrage profit except to the extent such action would not have caused the Certificate to be arbitrage bonds had it been reasonably expected on the date hereof. 3 72511770v1