No. 1965 authorizing the issuance of tax increment revenue bonds, series 2003, of the SB redevelopment district

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shall be set forth in the Issuer's Certificate. The Debt Service Reserve Requirement shall be deemed to be satisfied if there is on deposit in the Debt Service Reserve Account any surety bond, insurance policy, guaranty, letter of credit or other credit facility in any amount equal to such portion , the issuer of which credit facility is rated at least "AAA" by Standard & Poor's Ratings Group or "Aaa" by Moody's Investor Service. No deposit need be made in the Reserve Account so long as there shall be on deposit there a sum equal to the least of (i) the maximum annual debt service on the bonds, or (ii) one and one - quarter (1'/4) times the average annual debt service on the Bonds, or (iii) ten percent (10 %) of the proceeds of the Bonds within the meaning of Section 148(d) of the Internal Revenue Code of 1986, as amended (the "Code ") (the "Debt Service Reserve Requirement "). All money in the Reserve Account shall be used and withdrawn by the City solely for the purpose of making deposits into the Bond Principal and Interest Account, in the event of any deficiency at any time in such account, or for the purpose of paying the interest on or principal of or redemption premiums, if any, on the Bonds in the event that no other money is lawfully available therefor, except that so long as there is no default hereunder, any amount in the Reserve Account in excess of the Debt Service Reserve Requirement shall be withdrawn from the Reserve Account and deposited in the General Account. Money in the Reserve Account shall also be available to the final payments of interest and principal on the Bonds. (c) General Account. The remaining amounts in the Tax Increment Revenue Account shall be deposited into the General Account of the Allocation Fund and available only to do one (1) or more of the following: (1) pay the principal of and interest on any obligations (including the Bonds) payable solely from allocated tax proceeds which are incurred by the Redevelopment District for the purpose of financing or refinancing the redevelopment or economic development of the Area; (2) establish, augment, or restore the debt service reserve for bonds (including the Bonds) payable solely or in part from allocated tax proceeds in the Area; (3) pay the principal of and interest on bonds payable from allocated tax proceeds in the Area; (4) pay the principal of and interest on bonds issued by the City to pay for local public improvements in or serving the Area; (5) pay premiums on the redemption before maturity of bonds payable solely or in part from allocated tax proceeds in the Area; (6) make payments on leases payable from allocated tax proceeds in the Area under Section 25.2 of the Act; SBIMANI 145795v2 -16-