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hereby appropriated and shall be used solely to pay the scheduled principal of and interest on the • bonds, redeem bonds prior to maturity, pay any required arbitrage rebate due the United States, pay Trustee's fees and expenses and other administrative charges and maintain the debt service reserve at its required level. Collections of the Permanent Tax shall be used first, if necessary, to pay the scheduled principal of, interest on and Trustee's fees and expenses and other administrative charges in connection with the bonds, maintain the debt service reserve at its required level and pay any required arbitrage rebate due the United States and second, for park and recreational purposes, for public safety purposes, including particularly, without limitation, police and fire, and for street purposes (collectively, the "Permanent Tax Uses"). The covenants that the Bond Tax and the Permanent Tax (collectively, the "Taxes") shall never be repealed or reduced while any of the bonds are outstanding. The City further covenants to use due diligence in collecting the Taxes. Nothing herein shall prohibit the City from increasing the Taxes from time to time, to the extent permitted by law, and no part of the revenues derived from any such increase shall become part of the revenues pledged hereunder. Section 7. (a) The City hereby designates The Citizens Bank, Batesville, Arkansas as the bank which shall receive collections of the Taxes (the "Pledged Revenues") from the State Treasurer, and the City covenants to file a written designation thereof with the State Treasurer prior to the issuance of the bonds. The Trustee shall deposit all Pledged Revenues as and when received into a special fund of the City in the Trustee which is hereby created and designated "Sales and Use Tax Revenue Fund, Series 2012" (the "Revenue Fund"). There is created in the Revenue Fund the following accounts: Bond Account; and Permanent Account. The Pledged Revenues received by the Trustee shall be deposited as follows: Pledged Revenues • derived from the Bond Tax shall be deposited into the Bond Account and Pledged Revenues derived from the Permanent Tax shall be deposited into the Permanent Account. (b) Moneys in the Bond Account in the Revenue Fund shall be applied first each month, in the following order of priority: (1) 1/6 of the interest on the bonds next due - Debt Service Account in the Bond Fund(hereinafter identified); and (2) 1/12 of the principal of the bonds next due at maturity or upon mandatory sinking fund redemption - Debt Service Account in the Bond Fund; and (3) the Trustee's fees and expenses and other administrative charges next due - Expense Account in the Bond Fund; and (4) the amount which may be necessary to increase the Debt Service Reserve Account to the required level - Debt Service Reserve Account in the Bond Fund; and (5) the amount necessary to pay any arbitrage due under Section 148(f) of the Code - Expense Account in the Bond Fund; and 12