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the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with <br /> respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all <br /> such payments shall be valid and effective to fully satisfy and discharge the City's obligations <br /> with respect to the principal of and interest on the Bonds to the extent of the sum or sums so <br /> paid. No person other than DTC shall receive an authenticated Bond for each separate stated <br /> maturity evidencing the obligation of the City to make payments of principal and interest. Upon <br /> delivery by DTC to the Registrar of written notice to the effect that DTC has determined to <br /> substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new <br /> nominee in accordance with paragraph (d) hereof. <br /> (c) In the event the City determines that it is in the best interest of the Beneficial <br /> Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify <br /> DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through <br /> DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in <br /> accordance with paragraph (d) hereof. DTC may determine to discontinue providing its services <br /> with respect to the Bonds at any time by giving notice to the City and the Registrar and <br /> discharging its responsibilities with respect thereto under applicable law. In such event the <br /> Bonds will be transferable in accordance with paragraph (d) hereof. <br /> (d) In the event that any transfer or exchange of Bonds is permitted under <br /> paragraph (b) or(c) hereof, such transfer or exchange shall be accomplished upon receipt by the <br /> Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to <br /> the permitted transferee in accordance with the provisions of this resolution. In the event Bonds <br /> in the form of certificates are issued to owners other than Cede &Co., its successor as nominee <br /> for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, <br /> the provisions of this resolution shall also apply to all matters relating thereto, including, without <br /> limitation, the printing of such Bonds in the form of bond certificates and the method of payment <br /> of principal of and interest on such Bonds in the form of bond certificates. <br /> Section 4. Redemption of Prior Bonds. Proceeds of the Bonds are irrevocably <br /> appropriated to pay and redeem the Prior Bonds on the Redemption Date. The City Manager is <br /> hereby authorized and directed to take all actions necessary to redeem the Prior Bonds on the <br /> Redemption Date. <br /> Section 5. Security Provisions. <br /> 5.01. 2011B Improvement Bond Fund. So long as any of the Bonds are outstanding <br /> and any principal of or interest thereon unpaid, the Finance Director shall maintain a separate <br /> and special bookkeeping fund designated "2011B Improvement Bond Fund" (the "Bond Fund") <br /> to be used for no purpose other than the payment of the principal of and interest on the Bonds <br /> and on such other improvement bonds of the City as have been or may be directed to be paid <br /> therefrom. If the balance in the Bond Fund is at any time insufficient to pay all interest and <br /> principal then due on all bonds payable therefrom, the payment shall be made from any fund of <br /> the City which is available for that purpose, subject to reimbursement from the Bond Fund when <br /> the balance therein is sufficient, and the Council covenants and agrees that it will each year levy <br /> a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not <br /> subject to any constitutional or statutory tax limitation. <br /> -11- <br />