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on the same basis as interest on the bond. The payment of the Servicing Fee is expressly made <br /> subordinate to the payment of the principal of and interest on the bond. <br /> Section 8. Any balance in the Revenue Fund, after making the transfers required <br /> by Sections 6 and 7 hereof, may be used to make prepayments of principal of the bond. <br /> Section 9. The City hereby expressly pledges and appropriates all of the Pledged <br /> Revenues to the payment of the principal of and interest on and Servicing Fee in connection with <br /> the bond when due. This pledge in favor of the bond is hereby irrevocably made according to the <br /> terms of this Ordinance, and the City and its officers and employees shall execute, perform and <br /> carry out the terms thereof in strict conformity with the provisions of this Ordinance. The City <br /> covenants that the Tax shall never be repealed or reduced while the bond is outstanding. The City <br /> further covenants to use due diligence in collecting the Tax. <br /> Section 10. The City shall assure that (i) not in excess of 10% of the proceeds of <br /> the bond is used for Private Business Use if, in addition, the payment of more than 10% of the <br /> principal or 10% of the interest due on the bond during the term thereof is, under the terms of the <br /> bond or any underlying arrangement,directly or indirectly secured by any interest in property used <br /> or to be used for a Private Business Use or in payments in respect of property used or to be used <br /> for a Private Business Use or is to be derived from payments,whether or not to the City, in respect <br /> of property or borrowed moneys used or to be used for a Private Business Use; and(ii)that, in the <br /> event that both (A) in excess of 5% of the proceeds of the bond are used for a Private Business <br /> Use, and (B) an amount in excess of 5% of the principal or 5% of the interest due on the bond <br /> during the term thereof is, under the terms of the bond or any underlying arrangement, directly or <br /> indirectly, secured by any interest in property used or to be used for a Private Business Use or in <br /> payments in respect of property used or to be used for a Private Business Use or is to be derived <br /> from payments, whether or not to the City, in respect of property or borrowed money used or to <br /> be used for a Private Business Use,then the excess over said 5% of proceeds of the bond used for <br /> a Private Business Use shall be used for a Private Business Use related to the governmental use of <br /> the Improvements. <br /> The City shall assure that not in excess of 5%of the proceeds of the bond are used, <br /> directly or indirectly, to make or finance a loan to persons other than state or local governmental <br /> units. <br /> As used in this Section, "Private Business Use" means use directly or indirectly in <br /> a trade or business carried on by a natural person or in any activity carried on by a person other <br /> than a natural person, excluding, however, use by a state or local governmental unit and use as a <br /> member of the general public. <br /> The City covenants that it will not enter into any wholesale water contracts with <br /> non-governmental entities or modify existing wholesale water contracts with non-governmental <br /> entities for the sale of water by the City if such contracts or modifications of existing contracts <br /> will cause a violation of this Section. <br /> 6 <br />