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(c) Coverage Test. The Tax Increments are such that if collected in full they, together <br /> with estimated collections of other revenues herein pledged for the payment of the Bonds, will <br /> produce at least five percent in excess of the amount needed to meet when due the principal and <br /> interest payments on the Tax Increment Portion of the Bonds. <br /> (d) 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 Tax Increment Debt Service <br /> Subaccount and the estimated collections of Tax Increments to be received in the next succeeding <br /> year will not be sufficient to pay the principal and interest on the Tax Increment Portion of the <br /> Bonds to become due in the first calendar year thereafter and the first six months of the succeeding <br /> calendar year, the City Council shall pass a resolution requesting the County Auditor of Anoka <br /> County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned <br /> funds then held in the Tax Increment Debt Service Account and said estimated collections of Tax <br /> Increments to pay the principal and interest on the Tax Increment Portion of the Bonds to become <br /> due during said period. <br /> 17. Covenants Relating to the Equipment Portion of the Bonds. To provide moneys for <br /> payment of the principal and interest on the Equipment Portion of the Bonds there is hereby levied <br /> upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread <br /> upon the tax rolls and collected with and as part of other general property taxes in the City for the <br /> years and in the amounts as follows: <br /> Year of Tax Levy Year of Tax Collection Amount <br /> See attached schedule in Exhibit B <br /> The tax levies are such that if collected in full they, together with other revenues herein <br /> pledged for the payment of the Equipment Portion of the Bonds, will produce at least five percent <br /> in excess of the amount needed to meet when due the principal and interest payments on the <br /> Equipment Portion of the Bonds. The tax levies shall be irrepealable so long as any of the <br /> Equipment Portion of the Bonds are outstanding and unpaid, provided that the City reserves the <br /> right and power to reduce the levies in the manner and to the extent permitted by Minnesota <br /> Statutes, Section 475.61, Subdivision 3. <br /> 18. 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 powers <br /> of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account <br /> is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds <br /> payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which <br /> are available for such purpose, and such other funds may be reimbursed with or without interest <br /> from the Debt Service Account when a sufficient balance is available therein. <br /> 19. 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 Registrar <br /> on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not <br /> 17 <br /> 129376828v1 <br />