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ORDINANCE NO. 2006-32 PAGE 13 the amount of lawfully available municipal income taxes appropriated and to be applied to the payment of the debt charges on the Bonds in compliance with the following covenant. To the extent necessary, the debt charges on the Bonds shall be paid from municipal income taxes lawfully available therefor under the Constitution and laws of the State of Ohio; and the Village hereby covenants, subject and pursuant to such authority, including particularly Sections 133.05(B)(7) and 5705.51(A)(5) and (D), Revised Code, to appropriate annually from such municipal income taxes such amounts, and to continue to levy and collect such municipal income taxes in such amounts, as are necessary to meet such annual debt charges. Nothing in this section in any way diminishes the irrevocable pledge of the full faith and credit and general property taxing power of the Village to the prompt payment of the debt charges on the Bonds. Section 9. Redemption of the Refunded Bonds• Establishment and Investment of Escrow Fund. This Council determines that it is necessary and in the best interest of the Village to refund all of the Refunded Bonds and to redeem those Refunded Bonds by optional redemption on December 1, 2006 at a redemption price of 102% of the principal amount thereof. The Director of Finance is authorized and directed to give to the entity presently serving as the bond registrar and paying agent for the Refunded Bonds, on or promptly after the Closing Date, written notice of that call for redemption, and the Refunded Bonds shall be redeemed in accordance with the provisions of the Original Bond Legislation on that date. The Village covenants for the benefit of the holders of the Refunded Bonds and of the Bonds, that it will at no time on or after the Closing Date take actions to modify or rescind that call for prior redemption, and that it will take, and will cause the bond registrar and paying agent for the Refunded Bonds to take, all steps required by the terms of the Refunded Bonds to make and perfect that call for prior redemption. Pursuant to and in accordance with, and as provided by Section 133.34(D) of the Revised Code, there is hereby created within the Bond Retirement Fund an escrow fund (the Escrow Fund) which sha11 be held and maintained by the Director of Finance in trust for the registered owners of the Refunded Bonds and which Escrow Fund and all amounts therein are pledged for the payment of principal of, and redemption premium and interest on, the Refunded Bonds. The proceeds received by the Village from the sale of the Bonds (except any premium and accrued interest) shall be placed into, and credited to, the Escrow Fund. Those funds are appropriated and shall be applied, together with other funds heretofore appropriated by this Council for the purpose of paying interest on the Refunded Bonds, to pay prmcipal of, and redemption premium and interest on, the Refunded Bonds on December 1, 2006. Pending that use, the moneys in the Escrow Fund sha11 be invested in direct obligations of, or obligations guaranteed as to payment by, the United States of America (within the meaning of Section 133.34(D) of the Revised Code) that mature or are subject to redemption by and at the option of the holder, not later than the date when those moneys, together with interest or other investment income accrued on those moneys, will be required for that use. After the redemption of, and payment in full of the principal of, and redemption premium and interest on, the Refunded Bonds, any moneys remaining in the Escrow Fund shall be transferred to the Bond Retirement Fund. Section 10. Federal Tax Considerations. The Village covenants that it will use, and will restrict the use and investment of, the proceeds of the Bonds in such manner and to such extent as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Sections 141, 148 or 149 of the Code or (ii) be treated other than as bonds to which Section 103 of the Code applies, and (b) the interest thereon will not be an item of tax preference under Section 57 of the Code.