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herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner <br />permitted by law. <br /> <br /> 18. Future Tax Levies. In the event it is anticipated the ag~egate of Tax Increments <br />and any other funds appropriated to and then held in the Debt Service Account and the estimated <br />collections of Tax Increments to be received in the next succeeding year will not be sufficient to <br />pay the principal and interest on the Bonds to become due in the first calendar year after such <br />determination and the first six (6) months of the succeeding calendar year, the City Council shall <br />pass a resolution requesting the County Auditor of Anoka County to levy an ad valorem tax in an <br />amount as is necessary, together with the aforementioned funds then held in the Debt Service <br />Account' and the estimated collections of Tax Increments, to pay the principal and interest on the <br />Bonds to become due during said period. <br /> <br /> 19. Coveraze Test. The estimated collections of Tax InCrements are such that if <br />collected in full they, together with estimated collections of other revenues herein pledged for the <br />payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to <br />meet when due the principal and interest payments on the Bonds. <br /> <br /> 20. Defeasance.' When all Bonds have been discharged as provided in this paragaph, <br />all pledges, covenants and other rights granted by this resolution to the registered hoIders 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 t~e 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 .r__e. gulating such action, by depositing irrevocably in escrow, with a <br />suitable banking institutlo]i'qualified by law as an escrow agent for this purpose, cash or <br />securities described in Minnesota Statutes, Section 475.67, Subdivision 8, beating 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 /> <br /> 21. Compliance With Reimbursement Bond Reaulations. 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 /> <br /> 19 <br />1237483.1 <br /> <br />~107- <br /> <br /> <br />