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principal of the assessments shall be made payable in annual installments, with interest as <br />established by this Council in accordance with law on unpaid installments thereof from time to <br />time remaining unpaid. In the event any special assessment shall at any time be held invalid with <br />respect to any lot or tract of land, due to any error, defect or irregularity in any action or <br />proceeding taken or to be taken by the City or by this Council or by any of the officers or <br />employees of the City, either in the making of such special assessment or in the performance of <br />any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do all <br />such further things and take all such further proceedings as shall be required by law to make such <br />special assessment a valid and binding lien upon said property. <br />SECTION 6. RESERVED. <br />SECTION 7. PLEDGE OF TAXING POWERS. For the prompt and full payment of the <br />principal of and interest on the Bonds as such payments respectively become due, the full faith, <br />credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In <br />order to produce aggregate amounts which, together with the collections of other amounts as set <br />forth in Section 4, will produce amounts not less than 5% in excess of the amounts needed to <br />meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby <br />levied on all taxable property in the City, the taxes to be levied and collected in the years and <br />amounts as shown on EXHIBIT C. <br />The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, <br />provided that the City reserves the right and power to reduce the tax levies from other legally <br />available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. <br />SECTION 8. DEFEASANCE. When all of the Bonds have been discharged as provided in this <br />Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the <br />Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are <br />due on any date by depositing with the Registrar on or before that date a sum sufficient for the <br />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, redemption premium, if any, and interest then due, provided that <br />notice of such redemption has been duly given as provided herein. The City may also at any <br />time discharge its obligations with respect to any Bonds, subject to the provisions of law now or <br />hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with the <br />Registrar or with a bank or trust company qualified by law to act as an escrow agent for this <br />purpose, cash or securities which are authorized by law to be so deposited for such purpose, <br />bearing interest payable at such times and at such rates and maturing or callable at the holder's <br />option on such dates as shall be required to pay all principal and interest to become due thereon <br />to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an <br />earlier designated redemption date. If such deposit is made more than ninety days before the <br />maturity date or specified redemption date of the Bonds to be discharged, the City must have <br />received a written opinion of Bond Counsel to the effect that such deposit does not adversely <br />affect the exemption of interest on any Bonds from federal income taxation and a written report <br />4876-8449-2315\4 9 <br />