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17. Future Tax Levies. In the event that it is anticipated that the aggregate of Tax <br />Increments and any other funds appropriated to and then held in the Debt Service Account and <br />the estimated collections of Tax Increments to be received in the next succeeding year will not be <br />sufficient to pay the principal and interest on the Bonds to become due in the first calendar year <br />after such determination and the first six (6) months of the succeeding calendar year, the City <br />Council shall pass a resolution requesting the County Auditor of Anoka County to levy an ad <br />valorem tax in an amount as is necessary, together with the aforementioned funds then held in <br />the Debt Service Account and said estimated collections of Tax Increments, to pay the principal <br />and interest on the Bonds to become due during said period. <br />18. Coverage Test. The estimated collections of Tax Increments are such that if <br />collected in full they, together with estimated collections of other revenues and such taxes herein <br />pledged for the payment of the Bonds, will produce at least five percent (5 %) in excess of the <br />amount needed to meet when due the principal and interest payments on the Bonds. <br />19. Authorization to Execute Pledge Agreement. The Pledge Agreement is hereby <br />approved in substantially the form now on file in the office of the City; and the Mayor and City <br />Administrator of the City are authorized to execute the Pledge Agreement in the name of and on <br />behalf of the City. In the event of the disability or the resignation or other absence of the Mayor <br />or City Administrator of the City, such other officers of the City who may act in their behalf <br />shall without further act or authorization of the City do all things and execute all instruments and <br />documents required to be done or to be executed by such absent or disabled officials. The <br />approval hereby given to the Pledge Agreement includes approval of such additional details <br />therein as may be necessary and appropriate and such modifications thereof, deletions therefrom <br />and additions thereto as may be necessary and appropriate and approved by the City Attorney <br />and by the City officials authorized herein to execute the Pledge Agreement prior to its <br />execution; and said City officials are hereby authorized to approve said changes on behalf of the <br />City. <br />20. Reservation of Rights. Notwithstanding any provisions herein to the contrary, the <br />City reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments <br />herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner <br />permitted by law. <br />21. Resolution of the Authority. The Authority will adopt a resolution authorizing <br />execution of the Pledge Agreement. The City shall take such action as it determines is necessary <br />to assure that the covenants of the Authority in the Pledge Agreement are fully and promptly <br />performed; provided that in the exercise of any rights with respect thereto, the City shall be <br />subject to the same standards and to the same rights applicable to the Authority under the <br />covenants as if the City were the Authority. <br />22. 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 />4590579v1 <br />17 <br />