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e e (2) obligations of any of thc following federal agencies which obligations represent full faith and crcdit of the Unitcd States of America, including: Export - Import Bank Farmcrs Homc Administration U.S. Maritime Administration Small Business Administration Government National Mortgage Association (GNMA) U.S. Department of Housing and Urban Development (PHA's) Fcderal Hou:;ing Administration; (3) bonds, notes or other evidences of indebtedness rated "AAA" by Standard & Poor's Corporation and "Aaa" by Moody's Investor Services issued by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation with remaining maturities not exceeding three years; or [(4) other forms of investments permitted by law and approved in writing by the .] (h) The term "Year" or "fiscal year" shall mean the regular fiscal year used by the City which may be any 12 consecutive months period established by the City. Section 7. PLEDGE AND LEVY OF TAXES. While the Bonds are any part of the principal thereof or the interest thereon remain outstanding and unpaid, there is hereby levied and there shall be annually assessed and collected in due time, form, and manner and at the same time other City taxes are asscssed, levied, and collected, in each year beginning with the current year, a continuing direct annual ad valorem tax upon all taxable property in the City sufficient to pay the current interest thereon and to create a sinking fund of not less than two percent of the principal amount of the Bonds then outstanding or of not less than the amount required to pay the principal payable out of said tax, whichever is greater, full allowance being made for delinquencies and costs of collection, and said taxes, when collected shall be applied to the principal of and interest on the Bonds and for no other purpose. Section 8. INIEREST AND SINKING FUND. For the purpose of paying the principal of and interest on the Bonds, as the same come due, there is hereby created and established on the books of the City a separate fund entitled the "City of La Porte, Texas, General Obligation Bonds, Series 1990 Interest and Sinking Fund" (the "Interest and Sinking Fund"), and all taxes levied and collected pursuant to Section 7 hereof shall be deposited as collected into the Interest and Sinking Fund. Section 9. INVF.STMENTS AND SECURITY FOR FUNDS. The City Council may place money in any fund created by this Ordinance in Permitted Investments; provided, however, that the City hereby covenants that the proceeds of the sale of the Bonds will be used as soon as practicable for the purposes for which the Bonds are issued. Obligations purchased as an investment of money in a fund shall be deemed to be a part of such fund. Except as otherwise provided by law and Section 16 hereof, amounts received from the investment of any money in any fund created by this Ordinance may be placed into any fund of the City as determined by the City 12