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principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the • Issuer which is available for that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the City Council of the Issuer covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to pay any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. 4.02. Tax Increment Revenue ;~gposits to i king md. The Issuer hereby covenants and agrees with the registered owners from time to time of the Bonds, that until the Bonds are paid in full, or aze discharged as provided in Section 5, the Issuer will deposit in the Bond Fund the tax increments derived from the Tax Increment Districts (less any amounts subject to a prior pledge to another use) in an amount, together with amounts then on hand therein, equal to 105% of the annual debt service on the Bonds, which funds are hereby irrevocably pledged and appropriated to the payment of the Bonds herein authorized and interest thereon when due and shall be transferred to the Bond Fund in the required amounts prior to each February 1 and August 1 payment date for the Bonds. Nothing herein shall preclude the Issuer from hereafter making further pledges and appropriations of the Tax Increments for payment of additional obligations of the Issuer hereafter authorized if the City Council determines before the authorization of such additional obligations that the estimated revenues derived from the Tax Increments and equivalent amounts provided by the Issuer will be sufficient, together with any other sources pledged to the payment of the outstanding and additional obligations, for payment of the outstanding bonds and such additional obligations. Such further pledges and appropriations of revenues may be made superior or subordinate to or on a parity with, the pledge and appropriation herein made. • 4.03. P w .For the rom t and II r r full paymcnt •f the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the Issuer shall be and aze hereby irrevocably pledged. It is, however, presently estimated that the tax increments derived from the Tax Increment Districts and other funds appropriated to the Bond Fund pursuant to Section 4.01 hereof will provide sums not less than 5% in excess of principal and interest on the Bonds when due, and therefore no tax levy is presently required. . Section 5. Defeasance. When all of the Bonds have been dischazged as provided in this section, all pledges, covenants and other rights granted by this Resolution to the registered owners of the Bonds shall cease. The Issuer may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The Issuer may also at any time dischazge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which aze authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable • 1452997 13