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At the time the assessments are in fact levied the City Council shall, based on the then - <br />current estimated collections of the assessments, make any adjustments in any ad valorem taxes <br />required to be levied in order to assure that the City continues to be in compliance with <br />Minnesota Statutes, Section 475.61, Subdivision 1. <br />17. Tax Lew: Coverage Test. To provide moneys for payment of the principal and <br />interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct <br />annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of <br />other general property taxes in the City for the years and in the amounts as follows: <br />Lew Years Collection Years Amount <br />2011-2025 2012-2026 See Attached Schedule <br />The tax levies are such that if collected in full they, together with estimated collections of <br />special assessments and other revenues herein pledged for the payment of the Bonds, will <br />produce at least five percent in excess of the amount needed to meet when due the principal and <br />interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds <br />are outstanding and unpaid, provided that the City reserves the right and power to reduce the <br />levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.6 1, <br />Subdivision 3. <br />18. Defeasance. When all Bonds have been discharged as provided in this paragraph, <br />all pledges, covenants and other rights granted by this resolution to the registered holders of the <br />Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with <br />respect to any Bonds which are due on any date by irrevocably depositing with the Bond <br />Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond <br />should not be paid when due, it may nevertheless be discharged by depositing with the Bond <br />Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such <br />deposit. The City may also discharge its obligations with respect to any prepayable Bonds called <br />for redemption on any date when they are prepayable according to their terms, by depositing <br />with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, <br />provided that notice of redemption thereof has been duly given. The City may also at any time <br />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 a <br />suitable banking institution qualified by law as an escrow agent for this purpose, cash or <br />securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest <br />payable at such times and at such rates and maturing on such dates as shall be required, without <br />regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity. <br />19. Compliance With Reimbursement Bond. Regulations. The provisions of this <br />paragraph are intended to establish and provide for the City's compliance with United States <br />Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the <br />"reimbursement proceeds" of the Bonds, being those portions .thereof which will be used by the <br />City to -reimburse- itself for -any expenditure- which the. City paid or will- have;.paid.prior to the <br />Closing Date (a "Reimbursement Expenditure"). <br />1'8 <br />42324301 <br />