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• <br /> Section 5 . Sufficiency of System Revenues . It is <br /> hereby found, determined and declared that the Issuer owns and <br /> operates the System as a revenue-producing utility and <br /> convenience; and that the net operating revenues of said <br /> System, after deducting from the gross receipts derived from <br /> charges for the service, use and availability of the System the <br /> normal , current and reasonable expenses of operation and <br /> maintenance thereof , will be sufficient , together with any <br /> other pledged funds , for the payment when due of the accreted <br /> amount of the Bonds herein authorized. <br /> Section 6 . Rate Covenant . Pursuant to Minnesota <br /> Statutes, Section 444 . 075, the Issuer hereby covenants and <br /> agrees with the holders from time to time of the Bonds herein <br /> authorized, that until the accreted amount of the Bonds is paid <br /> in full , or the Bonds are discharged as provided in Section 8, <br /> the Issuer will impose and collect reasonable charges for the <br /> service, use and availability of the System according to <br /> schedules sufficient, along with funds expected to received in <br /> settlement of the ground water litigation, to produce net <br /> revenues sufficient to pay the accreted amount of the Bonds <br /> herein authorized when due; and said net revenues and <br /> settlement proceeds, to the extent necessary, are hereby <br /> • irrevocably pledged and appropriated to the payment of such <br /> accreted amount . Nothing herein shall preclude the Issuer from <br /> hereafter making further pledges and appropriations of the net <br /> revenues of the System for payment of additional obligations of <br /> the Issuer hereafter authorized if the Council determines <br /> before the authorization of such additional obligations that <br /> the estimated net revenues of the System will be sufficient , <br /> together with any other sources pledged to the payment of the <br /> outstanding and additional obligations , for payment of the <br /> outstanding bonds and such additional obligations . Such <br /> further pledges and appropriations of said net revenues may be <br /> made superior or subordinate to or on a parity with, the pledge <br /> and appropriation herein made. <br /> Section 7 . Pledge of Taxing Powers . For the prompt <br /> and full payment of the accreted amount of said Bonds , the full <br /> faith, credit and unlimited taxing powers of the Issuer shall <br /> be and are hereby irrevocably pledged. It is , however , <br /> presently estimated that the funds appropriated pursuant to <br /> Section 6 hereof will provide sums less than 5% in excess of <br /> the accreted amount of the Bonds when due, and therefore no tax <br /> levy is presently required. <br /> Section 8 . Defeasance . When all of the Bonds have <br /> been discharged as provided in this section, all pledges , <br /> • covenants and other rights granted by this resolution to the <br /> holders of the Bonds shall cease . The Issuer may discharge its <br /> -12- <br />