Resolution - #04-12-373 - 12/14/2004

Home

the cxlent that such investment would cause the Certificates to be "federally guaranteed" within [he meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). l ~. Tax Levv; Coverage Test. To provide moneys for payment of the principal and intcrcsl on the Certificates there is hereby levied upon all of the taxable property in the City a d irc{zl annual ad valorem tax which shall be spread upon the tax rolls and collected with and as I~'~ o I' other general property taxes in the City for the years and in the amounts as follows: Year o f Tax Levy Year of Tax Collection Amount 2O04 2005 2005 2006 2006 20O7 2007 2008 2008 2009 The tax levies are such that if collected in full they, together with other revenues herein pledged for the payment of the Certificates, will produce at least five percent (5%) in excess of ibc m~ottnt needed to meet when due the principal and interest payments on the Certificates. Thc tax levies shall be irrepealable so long as any of the Certificates are outstanding and unpaid, prt>vidcd that thc City reserves the right and power to reduce the levies in the manner and to the c~xtcnt pcrmilted by Minnesota Statutes, Section 475.61, Subdivision 3. 17. Defeasance. When all Certificates have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holder's ot'the Certificates shall cease. The City may discharge its obligations with respect to any ('ertl [icatcs which are due on any date by irrevocably depositing with the Registrar on or before that dale at sun] sufficient for the payment thereof in full; or if any Certificate should not be paid xvhcl] duc, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also ~t am y lime discharge its obligations with respect to any Certificates, subject to the provisions of I~tw mm~ or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, wilh at suitable banking institution qualified by law as an escrow agent for this purpose, cash or s¢cm'itics described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, subject ~o s~lc m~(l/or reinvestment, to pay all amounts to become due thereon to maturity. 18. General Obligation Pledge. For the prompt and full payment of the principal and imco'cst on the Certificates, as the same respectively become due, the full faith, credit and taxing powers o 1' lhe City shall be and are hereby irrevocably pledged. If the balance in the Debt 5t;rvicc Account is ever insufficient to pay all principal and interest then due on the Certificates ;md any other certificates payable there fi'om, the deficiency shall be promptly paid out of any other-ftmds of the City which are available for such purpose, and such other funds may be rcimbm'scd with or without interest from the Debt Service Account when a sufficient balance is available therein.