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thereof, is $9,000,000, and therefore the principal amount of the Bonds does not exceed the <br />maximum projected amount of the Tax Abatements. The Council hereby confirms the <br />Abatement Resolution, which is hereby incorporated as though set forth herein. <br />17. Tax Levy, Coverage Test. To provide moneys for payment of the interest on the <br />Bonds, there is hereby levied upon all of the taxable property in the City a direct annual ad <br />valorem tax which shall be spread upon the tax rolls and collected with and as part of other <br />general property taxes in the City for the years and in the amounts as follows: <br />Year of Tax Levi Year of Tax Collection Amount <br />See Attached Tax Levy Schedule <br />The tax levies are such that if collected in full they, together with estimated collections of <br />Tax Abatements, will produce at least five percent in excess of the amount needed to meet when <br />due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so <br />long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right <br />and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, <br />Section 475.61, Subdivision 3. <br />18. General Obligation Pledge. For the prompt and full payment of the principal of <br />and 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 <br />payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City <br />which are available for such purpose, and such other funds may be reimbursed without interest <br />from the Debt Service Account when a sufficient balance is available therein. <br />19. 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 />notice of redemption as herein required has been duly provided for, to such earlier redemption <br />date. <br />15 <br />53590415v1 <br />