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5.06. Lew of Special Assessments. The City hereby covenants and agrees that for <br /> payment of the cost of each of the Improvements it will do and perform all acts and things <br /> necessary for the full and valid levy of special assessments against all assessable lots, tracts and <br /> parcels of land benefited thereby and located within the area proposed to be assessed therefor, <br /> based upon the benefits received by each such lot, tract or parcel, in an aggregate principal <br /> amount not less than twenty percent(20%) of the cost of the Improvements. In the event that <br /> any such assessment shall be at any time held invalid with respect to any lot,piece or parcel of <br /> land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by <br /> the City or this Council or any of the City's officers or employees, either in the making of such <br /> assessment or in the performance of any condition precedent thereto, the City and this Council <br /> hereby covenant and agree that they will forthwith do all such further acts and take all such <br /> further proceedings as may be required by law to make such assessments a valid and binding lien <br /> upon such property. The Council presently estimates that the special assessments shall be in the <br /> aggregate principal amount of$531,000 payable in not more than 15 installments, the first <br /> installment to be collectible with taxes during the year 2009, and that deferred installments shall <br /> bear interest at the rate of not less than 5.25%per annum from the date of the resolution levying <br /> said assessment until December 31 of the year in which the installment is payable. <br /> 5.07. Pledge of Taxing Powers. For the prompt and full payment of the principal of and <br /> interest on the Bonds as such payments respectively become due, the full faith, credit and <br /> unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to <br /> produce aggregate amounts not less than 5% in excess of the amounts needed to meet when due <br /> the principal and interest payments on the Improvement Bonds, ad valorem taxes are hereby <br /> levied on all taxable property in the City, the taxes to be levied and collected in the following <br /> years and amounts: <br /> Lever Collection Years Amount <br /> See attached levy calculation <br /> The taxes shall be irrepealable as long as any of the hnprovement Bonds are outstanding <br /> and unpaid, provided that the City reserves the right and power to reduce the tax levies from <br /> other legally available funds, in accordance with the provisions of Minnesota Statutes, <br /> Section 475.61. <br /> Section 6. Defeasance. When all of the Bonds have been discharged as provided in <br /> this section, all pledges, covenants and other rights granted by this resolution to the holders of <br /> the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which <br /> are due on any date by depositing with the Registrar on or before that date a sum sufficient for <br /> the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be <br /> discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with <br /> interest accrued from the due date to the date of such deposit. The City may also discharge its <br /> obligations with respect to any prepayable Bonds called for redemption on any date when they <br /> • are prepayable according to their terms, by depositing with the Registrar on or before that date an <br /> amount equal to the principal, interest and redemption premium, if any, which are then due, <br /> -16- <br />