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If the balance in the Bond Fund is at any time insufficient to pay all interest and principal <br />then due on all Bonds payable therefrom, the payment shall be made from any fund of the City <br />which is available for that purpose, subject to reimbursement from the Surplus Account when the <br />balance therein is sufficient, and the City covenants and agrees that it will each year levy a <br />sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, <br />which levy is not subject to any constitutional or statutory limitation. <br />SECTION 5. SPECIAL ASSESSMENTS. The City hereby covenants and agrees that, for the <br />payment of the costs of the Project, the City has done or will do and perform all acts and things <br />necessary for the final and valid levy of special assessments in a principal amount of $491,330, <br />which amount is not less than 20% of the cost of the Project. The principal of and interest on such <br />special assessments are estimated to be levied and collected in the years and amounts shown on <br />EXHIBIT C attached hereto. The principal of the assessments shall be made payable in annual <br />installments, with interest as established by this Council in accordance with law on unpaid <br />installments thereof from time to time remaining unpaid. In the event any special assessment shall <br />at any time be held invalid with respect to any lot or tract of land, due to any error, defect or <br />irregularity in any action or proceeding taken or to be taken by the City or by this Council or by <br />any of the officers or employees of the City, either in the making of such special assessment or in <br />the performance of any condition precedent thereto, the City hereby covenants and agrees that it <br />will forthwith do all such further things and take all such further proceedings as shall be required <br />by law to make such 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 principal <br />of and 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 which, together with the collections of other amounts as set forth in <br />Section 4, will produce amounts not less than 5% in excess of the amounts needed to meet when <br />due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all <br />taxable property in the City, the taxes to be levied and collected in the years and amounts as shown <br />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 S. 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 are <br />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 />