Resolution - #09-10-252 No Signature - 10/27/2009

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this effect, any proceeds of the Bonds and any sums from time to time held in the Construction Account or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable 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 the 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 Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 18. Certification to Commissioner. Upon the sale of the Bonds an officer of the City shall promptly certify to the Commissioner of Transportation, State of Minnesota, the amount of money required annually for the payment of principal and interest on the Bonds, all in accordance with Minnesota Statutes, Section 162.18. 19. Expenditure Consistent with Minnesota Statutes Chapter 162. Proceeds of the Bonds shall be spent only in accordance with the provisions of law and the rules and regulations of the Commissioner of Transportation relating to the establishment, location, relocation, construction, reconstruction and/or improvement of municipal State-Aid streets within the City. The City shall comply with the requirements of Minnesota Statutes, Chapter 162, in making the Improvements. 20. 105% Debt Service Coverage. It is hereby determined and reasonably anticipated that the estimated collections of the sums pledged to the Debt Service Account will produce at least 5% in excess of the amount needed to meet, when due, the principal of and interest on the Bonds. 21. General Obligation Pledge. For the prompt and full payment of the principal 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 balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds 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 reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 22. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the Holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any .Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, 2413138v2