Res. #11-007 - Accepting Proposals on the Sale of $2,760,000 G.O. Refunding Bond

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amount not greater than the lesser of five percent (5%) of the proceeds of the Note or $100,000. To this effect, any pmceeds of the Bonds or any sums from time to time held in the Escrow Account or Debt Service Account (or any other account of the City which will be used to pay principal or interest to become due on the Bonds) 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 said 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, moneys in the Fund shall not be invest� in obligations or deposits issu� by, guara.ntced 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"). Section 11. Refunded Bonds; Securitv Until retirement of the 2004 Bonds and the 2007 Bonds, all provisions theretofore made for the security thereof shall be observed by the City and all of its officers and agents. Section 12. Pled�e of Special Assessment Revenues. Pursuant to Minnesota Statutes, Chapter 429, the City covenanted to and did levy special assessments against property benefited � by the improvements constructed with the 2004 Bonds. The City reaffirms such covenants ' contained in the 2004 Bonds Resolution with respe,ct to the payment of the Bonds and hereby pledges the special assessment receipts to the payment of the 2004 Bonds Refunding Portion of the Bonds. Pursuant to Minnesota Statutes, Chapter 429, the City also covenanted to and did levy special assessments against property benefited by the improvements constructed with the 2007 Bonds. The City reaffirms such covenants contained in the 2007 Bonds Resolution with respect to the payment of the Bonds and hereby pledges the special assessment receipts to the payment of the 2007 Bonds Refunding Portion of the Bonds. Section 13. Defeasance. When all Bonds have been discharged as provided in this I paragraph, all pledges, covenants and other rights granted by this Resolution to the registered holders of the Bonds sha11, 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 Regishar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. If applicable, 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, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing nrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, subject to sale and/or reinvestment, to pay a11 amounts to become due thereon to 15