2. Street Improvement District #2007-1

time available by issuing new refunding improvement bonds payable from said fund, which refunding improvement bonds shall be on a parity with those theretofore issued as to interest charges thereon, but the maturity thereof shall be subsequent to the maturity of all Bonds payable from said fund and then outstanding, provided that no holder of Bonds herein authorized to be issued shall be obligated to accept any such refunding improvement bond in exchange for any of such matured Bond. Section 9. Covenants of Issuer. 9.01. The Issuer will use due diligence to collect said improvement warrants and to levy and collect the special assessments appropriated for their payment. 9.02. The Issuer will preserve and enforce for the benefit of the holders from time to time of the Bonds all of the rights, powers and privileges reserved to the holders of each improvement warrant. 9.03. At the time and in the manner prescribed by Section 40-26-08, North Dakota Century Code, as amended, this governing body will levy general taxes on all taxable property in the corporate limits of the Issuer for the payment of any deficiency in any of said improvement district funds and will cause the proceeds thereof to be applied in payment of the principal of and interest on the then unpaid improvement warrants drawn on said funds; provided that the Issuer reserves the right to levy taxes in the manner and to the extent permitted by law for payment and discharge of any deficiency in said improvement district funds prior to the date upon which it may become obligatory to levy such deficiency taxes, and the amounts thereof shall be credited against the levies which the Issuer might otherwise have been obligated to make. Section 10. Arbitraae. 10.01. The Issuer covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents, any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986 (the "Code"), and Regulations, Amended Regulations and Proposed Regulations issued thereunder, as now existing or as hereinafter amended or proposed and in effect at the time of such action. Section 11. Parity Warrants and Bonds. 11.01. The Issuer hereby reserves the right to issue additional improvement warrants and refunding improvement bonds, payable on a pari ty with the Bonds issued hereunder and the warrants to be exchanged for the Bonds issued hereunder, to the extent required to -5-