Resolution 2009-012 - Laserfiche WebLink

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any of the Bonds are outstanding and unpaid, provided that the Issuer reserves the right and power to reduce said levies in accordance with the provisions of Minnesota Statutes, Section 475.61. 4.03. Sufficiency of Revenues. It is hereby found, determined and declared that the Issuer owns and operates the municipal water utility system (the "System") as a revenue-producing utility and convenience and that the net operating revenues of the System, after deducting from the gross receipts derived from charges for the service, use and availability of the System the normal, current and reasonable expenses of operation and maintenance thereof, will be sufficient, together with any other funds actually appropriated by the Issuer, for the payment when due of the principal of and interest on the Bonds herein authorized, and on any other bonds to which such revenues are pledged. 4.04. Rate Covenant. Pursuant to Minnesota Statutes, Section 444.075, the Issuer hereby covenants and agrees with the registered owners from time to time of the Bonds, that until the Bonds and the interest thereon are paid in full, or are discharged as provided in Section 5, the Issuer will impose and collect reasonable charges for the service, use and availability of the System according to schedules which will produce net revenues sufficient, with any other funds appropriated by the Issuer, to pay all principal and interest when due on the Bonds and any other bonds to which said net revenues have been pledged; and said net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds. Nothing herein shall preclude the Issuer from hereafter making further pledges and appropriations of the net revenues of the System for payment of additional obligations of the Issuer hereafter authorized if the governing body of the issuing entity determines before the authorization of such additional obligations that the estimated net revenues of the System 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 said net revenues may be made superior or subordinate to, or on a parity with, the pledge and appropriation herein made. Section 5. Defeasance. When all of the Bonds have been discharged 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 discharge 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 or trust company qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity. Section 6. Tax Covenants; Arbitrage Matters and Continuing Disclosure. 15