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19. Issuance of Definitive Obligations: Coverage Test. To further provide <br />moneys for the prompt and full payment of principal and interest on the Bonds, the City shall <br />issue and sell definitive bonds or additional temporary bonds, at or prior to the maturity date of <br />the Bonds issued hereunder, in such amounts as are needed to pay the principal and interest when <br />due on the Bonds after the application of the special assessments theretofore collected, and the <br />appropriation of such other municipal funds as are properly available for such purpose. The <br />Council hereby finds, determines and declares that the estimated collections of special <br />assessments to be received before the maturity date of the Bonds, together with the proceeds of <br />any definitive bonds or additional temporary bonds, to be issued at or before the maturity date, <br />and other revenues pledged for the payment of the Bonds and the interest thereon will equal at <br />least five percent (5%) in excess of the principal and interest requirements of the Bonds as the <br />same become due. <br />20. Bondholder Covenant. The provisions of this resolution constitute a . <br />covenant with the holders of the Bonds issued by the City and the definitive bond to be issued to <br />refund such Bonds and, with respect to the payment of funds to the Debt Service Account, a <br />pledge of those funds for the benefit of the holders of the Bonds payable therefrom. <br />21. Defeasance. When all Bonds have been discharged as provided in this <br />paragraph, all pledges, covenants and other rights granted by this resolution to the registered <br />holders of the Bonds shall, to the extent permitted by law, cease. The City may .discharge its <br />obligations with respect to any Bonds which are due on any date by irrevocably depositing with <br />the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if <br />any Bond should not be paid when due, it may nevertheless be discharged by depositing with the <br />Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date <br />of such deposit. The City may also discharge its obligations with respect to any prepayable <br />Bonds called for redemption on any date when they are prepayable according to their terms, by <br />depositing with the Bond Registrar on or before that date a sum sufficient for the payment <br />thereof in fiill, provided that notice of redemption thereof has been duly given.. The City may <br />also at any time discharge its obligations with respect to any Bonds; subject to the provisions of <br />law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, <br />with a 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 $, bearing interest - <br />payable at such times and at such rates and maturing on such dates as shall berequired, without <br />regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if <br />notice of redemption as -herein required has been duly.provided for, tosuch earlier redemption <br />-date-. <br />.22..: Compliance With R6WhUrsement Bond Reuulations; The }provisions of <br />this paragraph arelntended to establish'and provide fbr 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 />1222136.1 19 <br />