Laserfiche WebLink
regulations on such investments after taking into account any applicable "temporary periods" or <br />"minor portion" made available under the federal arbitrage regulations. Money in the Fund shall <br />not be invested in obligations or deposits issued by, guaranteed by or insured by the United <br />States or any agency or instrumentality thereof if and to the extent that such investment would <br />cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the <br />Internal Revenue Code of 1986, as amended (the "Code"). <br />16. 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 />Year of Tax Lew Year of Tax Collection Amount <br />2004-2018 2005-2019 See Attached <br />The tax levies are such that if collected in full they will produce at least five percent in <br />excess of the amount needed to meet when due the principal and interest payments on the Bonds. <br />The tax levies shall be irreparable so long as any of the Bonds are outstanding and unpaid, <br />provided that the City reserves the right and power to reduce the levies in the manner and to the <br />extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. <br />17. General Obligation Pledge. For the prompt and full payment of the principal and <br />interest on the Bonds, as the same respectively become due, the full faith, credit and taxing <br />powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt <br />Service Account is ever insufficient to pay all principal and interest then due on the Bonds and <br />any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds <br />of the City which are available for such purpose, and such other funds may be reimbursed with <br />or without interest from the Debt Service Account when a sufficient balance is available therein. <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 or, if <br />1651960x1 16 <br />