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higher yielding investments, except (1) for a reasonable temporary period until such proceeds are <br />needed for the purpose for which the Bonds were:issued and (2) in addition to the above in an <br />mount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To <br />this effect, any proceeds of the Bonds and any sums from time to time held in the Construction <br />Account, the Escrow Account or DebtService Account (or any other City account which will be <br />used to pay principal or interest to become:4ue on the bonds payable therefrom) in excess of <br />amounts which under then applicable federal .arbitrage regulations may be invested without <br />regard to yield shall not be invested at a yieldin excess of the applicable yield restrictions <br />imposed by said arbitrage regulations on suet/investments after taking into account any <br />applicable "temporary periods" or "minor porfioni' made available under the federal arbitrage <br />regulations. Money in the Fund 'shall not be invested in obligations or deposits issued by, <br />guaranteed by or insured by the Ltrdted States'or any agency or instrumentality thereof if and to <br />the extent that such investment would cause the:Bonds to be "federally guaranteed" within the <br />meaning of Section 149Co) of thelnternal Revenue Code of 1986, as amended (the "Code"). <br /> <br /> 16. Tax Levy; 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 shallbe spread upon the tax rolls and coIlected with and as part of <br />other general property taxes in the City for the years and in the mounts as follows: <br /> <br />Year of Tax Levy_ Year of Tax Collection <br /> <br />Amount <br /> <br />See Attached <br /> <br /> The tax levies are such that if collected in full they, together with other revenues herein <br />pledged for the payment of the Bonds, wilt ProduCe at least five percent in excess of the amount <br />needed to meet when due the princlipal and interest payments on the Bonds. The tax levies shall <br />be irreparable so long as any of the Bonds are:outstanding and unpaid, provided that the City <br />reserves the right and power to reduce the l~vles in the manner and to the extent permitted by <br />Minnesota Statutes, Section 475.6I, Subdivision 3. <br /> <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 /> <br /> 18. Defeasance. When all Bonds have been discharged as provided in.this paragraph, <br />all pledges, covenants and other rights granted bYthis 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 /> <br />1700675vl 16 <br /> <br /> <br />