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Service Account, which appropriation shall continue until all of the Bonds and any additional <br />bonds payable from the Debt Service Account, are paid or discharged. <br /> <br /> 17. Reservation of Rights. Notwithstanding any provisions herein to the contrary, the <br />City reserves the right to terminate, reduce, or apply to other lawful proposes the Tax Increments <br />herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner <br />penultted by law. <br /> <br /> 18. 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 Fund and the <br />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 months of the succeeding calendar year, the City <br />Council shall pass a resolution requesting the Director of Property Tax and Public Records of <br />Anoka County to levy an ad valorem tax in an mount as is necessary, together with the <br />aforementioned funds then held in the Debt Service Fund and said estimated collections of Tax <br />Increments, to pay the principal and interest on the Bonds to become due during said period. <br /> <br /> 19. Coverage 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 ftve percent in excess of the amount needed to meet <br />when due the principal and interest payments on the Bonds. <br /> <br /> 20. 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 stun 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 /> <br /> 21. 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 /> <br /> 14 <br />1849055vl <br /> <br /> <br />