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EXHIBIT B <br />TO ORDINANCE <br /> <br />ARBITRAGE INSTRUCTIONS <br /> <br /> $4,475,000 <br />City of University City, Missouri <br />General Obligeion Bonds <br /> Series 1994 <br /> <br /> These Arbitrage Instructions provide procedures for complying with § 148 of the Internal Revenue <br />Code of 1986, as amended (the "Code"), in order to preserve the exclusion from federal gross income <br />of the interest on the above-referenced Bonds (the "Bonds ") authorized by this Ordinance. <br /> <br /> Section 1. Temporary Periods/Yield Restriction. The sale proceeds of the Bonds and other <br />amounts deposited in the funds and accounts established under the Ordinance must be invested as follows: <br /> <br /> (a) Construction Fund. Proceeds of the Bonds deposited in the Construction Fund <br />may be invested without yield restriction for a period of 3 years after the date of issue of the <br />Bonds (the "Issue Date"). Earnings on such amounts may be invested without yield restriction <br />for a period not exceeding the later of 3 years after the Issue Date or 1 year after the date of <br />receipt of such eamings. <br /> <br /> (b) Debt Service Fund. Money deposited in the Debt Service Fund may be invested <br />without yield restriction for a period of 13 months after the date of deposit. Earnings on such <br />amounts may be invested without yield restriction for a period not exceeding 1 year after the date <br />of receipt of such earnings. <br /> <br />Any such amounts not invested as described above shall be invested at a yield not greater than the yield <br />on the Bonds. <br /> <br /> Section 2. Opinion of Bond Counsel. These Arbitrage Instructions may be modified or amended <br />in whole or in part upon receipt of an opinion of Bond Counsel to the effect that such modifications and <br />amendments will not adversely affect the exclusion from gross income of the interest on the Bonds. <br /> <br />B-1 <br /> <br /> <br />