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Fund as long as any of the Bonds are outstanding and unpaid; provided that the City <br />• reserves the right and power to reduce the levies in the manner and to the extent <br />permitted by Minnesota Statutes, Section 475.61. <br />4.06. Full Faith and Credit Pledged. The full faith and credit of the City <br />are irrevocably pledged for the prompt and full payment of the principal of and the <br />interest on the Bonds, and the Bonds shall be payable from the Bond Fund in <br />accordance with the provisions and covenants rnntained in this resolution. It is <br />estimated that the special assessments and ad valorem taxes levied and to be levied <br />for the payment of the Improvement will be collected in amounts not less than five <br />percent (5%) in excess of the annual principal and interest requirements of the <br />Bonds. If the money on hand in the Bond Fund should at any time be insufficient <br />for the payment of principal and interest then due, this City shall pay the <br />principal and interest out of any fund of the City, and such other fund or funds shall <br />be reimbursed therefor when sufficient money is available to the Bond Fund. If on <br />October 1 in any year the sum of the balance in the Bond Fund plus the amount of <br />taxes and special assessments theretofore levied for the Improvements and <br />collectible through the end of the following calendar year is not sufficient to pay <br />when due all principal and interest become due on all Bonds payable therefrom in <br />said following calendar year, or the Bond Fund has incurred a deficiency in the <br />manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be <br />levied on all taxable property within the corporate limits of the City for the purpose <br />of restoring such accumulated or anticipated deficiency in accordance with the <br />• provisions of this resolution. <br />Section 5. Defeasance. When any Bond has been discharged as <br />provided in this Section 5, all pledges, covenants and other rights granted by this <br />resolution to the holders of such Bonds shall cease, and such Bonds shall no longer <br />be deemed outstanding under this Resolution. The City may discharge its <br />obligations with respect to any Bond which is due on any date by irrevocably <br />depositing with the Registrar on or before that date a sum sufficient for the payment <br />thereof in full; or, if any Bond should not be paid when due, the City may <br />nevertheless discharge its obligations with respect thereto by depositing with the <br />Registrar a sum sufficient for the payment thereof in full with interest accrued to <br />the date of such deposit. The City may also discharge its obligations with respect to <br />any prepayable Bond called for redemption on any date when it is prepayable <br />according to their terms, by depositing with the Registrar on or before that date a <br />sum sufficient for the payment thereof in full; provided that notice of the <br />redemption thereof has been duly given as provided in Section 3.05. The City may <br />also at any time discharge its obligations with respect to any Bonds, subject to the <br />provisions of law now or hereafter authorizing and regulating such action, by <br />depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for <br />this purpose, cash or securities which are authorized by law to be so deposited, <br />beazing interest payable at such times and at such rates and maturing on such dates <br />. -16- <br />