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Section 4. Payment; Security. 4.01. The Bonds are payable from the Taxable General Obligation Tax Increment Bonds, Series 2001C Debt Service Fund (Debt Service Fund) hereby created, and the City hereby pledges to the Debt Service Fund the Available Tax Increments as defined in this section in the amount necessary to pay when due the principal of and interest on the Bonds. The term "Available Tax Increments" means tax increments derived from Tax Increment Financing District (TIF District) Nos. 4 through 18 and 25 through 29, subject to any limitations under Minnesota Statutes, Section 469.174 to 469.179 (TIF Act) as to the amount of tax increment expenditures permissible outside the boundaries of such districts, and any limitations as to the expenditure of tax increments from such districts for the purposes financed by the proceeds of the Bonds. The pledge of Available Tax Increments to the Bonds is subordinate to the pledge of Available Tax Increments (or portions thereof) to: the City's General Obligation Tax Increment Bonds, Series 1997C; the City's General Obligation Taxable Tax Increment Bonds, Series 19970; and any outstanding contracts payable from Available Tax Increments. The Council may from time to time by resolution direct the Finance Director-Clerk as to the relative portion of debt service payments on the Bonds that is to be charged to each TIF District, but in the absence of such direction the determination may be made by the Finance Director-Clerk subject to the limitations described in this paragraph. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director-Clerk is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Available Tax Increments when received. There is appropriated to the Debt Service Fund (i) capitalized interest funded from Bond proceeds, if any, (ii) any amount over the minimum purchase price paid by the Purchaser, and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.02. It is hereby determined that the estimated collection of Available Tax Increments for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.03. The City Finance Director-Clerk is authorized and directed to file a certified copy of this resolution with the Director of Property Records and Revenue of Ramsey County and to obtain the certificate required by Minnesota Statutes, Section 475.63. 4.04. The City may pledge Available Tax Increments to any other general obligations or revenue obligations on a superior, parity or subordinate basis with the pledge to the Bonds under this resolution. Notwithstanding anything to the contrary herein, the City reserves the right to reduce, modify or tenninate the pledge of Available Tax Increments to the payment of the Bonds to the extent and in the manner permitted by law so long as such action does not preclude the City from paying when due the principal of and interest on the Bonds or otherwise impair the City's full faith and credit pledge, and to apply to other lawful purposes the Available Tax Increments to the extent and in the manner permitted by law. SJB-192210vl NE136-166