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. 4.04. Full Faith and Credit Pledged. The full faith and credit and taxing <br />power of the City shall be and are hereby irrevocably pledged for the prompt and full <br />payment of the principal of and interest on the Bonds. It is estimated that the tax <br />increment from the Districts and other funds herein pledged for the payment of the <br />Bonds will be collected in amounts not less than five percent in excess of the <br />amounts needed to meet when due the principal of and interest on the Bonds and <br />all other obligations of the City payable from tax increments from the Districts as <br />required by Minnesota Statutes, Section 475.61. Consequently, no ad valorem taxes <br />are now levied to pay the Bonds or the interest to come due thereon, pursuant to <br />Minnesota Statutes, Section 469.178, subdivision 2. <br />4.05. Additional Bonds. The City reserves the right to issue additional <br />bonds payable from the Sinking Fund and tax increments to be derived from the <br />Districts may be used to finance costs of other projects to be undertaken in <br />accordance with the Development Program for the development programs for the <br />City's Development District No. 1 or Development District No. 2. <br />Section 5. Defeasance. When all of the Bonds have been discharged as <br />provided in this section, all pledges, covenants and other rights granted by this <br />resolution to the holders of the Bonds shall cease. The City may discharge its <br />obligations with respect to any Bonds which are due on any date by depositing with <br />• the paying agent on or before that date a sum sufficient for .the payment thereof in <br />full; or, if any Bond should not be paid when due, it may nevertheless be discharged <br />by depositing with the paying agent a sum sufficient for the payment thereof in full <br />with interest accrued to the date of such deposit. The City may also discharge its <br />obligations with respect to any prepayable Bond called for redemption on any date <br />when it is prepayable according to their terms, by depositing with the Registrar on or <br />before that date a sum sufficient for the payment thereof in full; provided that <br />notice of the redemption thereof has been duly given as provided in Section 3.05. <br />The City may also at any time discharge its obligations with respect to any Bonds, <br />subject to the provisions of law now or hereafter authorizing and regulating such <br />action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow <br />agent for this purpose, cash or securities which are general obligations of the United <br />States or securities of United States agencies which are authorized by law to be so <br />deposited, bearing interest payable at such time and at such rates and maturing on <br />such dates as shall be required, without reinvestment, to pay all principal and <br />interest to become due thereon to maturity or, if notice of redemption as herein <br />required has been duly provided for, to such .earlier redemption date. <br />Section 6. Registration, Certification of Proceedings, Investment of <br />Moneys, Arbitrage, Interest Disallowance and Official Statement. <br />6.01. Registration. The City Clerk is hereby .authorized and directed to <br />• file a certified copy of this resolution with the County Auditor of Ramsey County, <br />-16- <br />