Resolution - #93-10-242 - 10/12/1993

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I I I I I I I I I I I I I 5.0 diseharg~ granted pledge of prineipa!( may disch! on or bef~ should no1 the Regi~t to the dat~ ~. ~)efeasance. When all Bonds and all interest thereon, have been t a~ provided in this paragraph, all pledges, covenants and other rights g t~s resolution to the holders of the Bonds shall cease, except that the '.he,lfull faith and credit of the City for the prompt and full payment of the !f aBd interest on the Bonds shah remain in full force and effect. The City trg~ all Bonds which are due on any date by depositing with the Registrar re ~hat date a sum sufficient for the payment thereof in full; if any Bond beipaid when due, it may nevertheless be discharged by depositing with :ar~a sum sufficient for the payment thereof in full with interest accrued of Such deposit. The City may also at any time discharge and defease the Bonds in' ~he~r entirety by complying with the provisions of Section 475.67 of Minnesota Statutes, except that the funds deposited in escrow in accordance with said prov]~'.io~ may (to the extent permitted by law) but need not be, in whole or in part, pro,eels of bonds as therein provided without the consent of any Bondholde ~s.. Sect. on6. Authentication of Transcript. transcripts by the boo] validity heretofore stated ther 6.0~I. The officers of the City are authorized and directed to prepare and furnish to (he~urchaser and to the attorneys approving the Bonds, certified copies of proceed{ng.~ and records of the City relating to the Bonds and to the financial condition ~ ' '~ ' .and.~affa~rs of the City, and such other certificates, affidavits and as!may be required to show the facts within their knowledge or as shown ¢s ~.nd records in their custody and under their control, relating to the id ~narketability of the Bonds and such instruments, including any fm~dshed, shall be deemed representations of the City as to the facts The Mayor and City Administrator are hereby authorized and directed to certify l*at ~hey have examined the Official Statement prepared and circulated in connection ~rith the issuance and sale of the Bonds and that to the best of their knowledge~ ~nd !belief the Official Statement is a complete and accurate representation of the facts ~n~:representations made therein as of the date of the Official Statement, Secti(m 7. Tax Covenant. 7.01~.:: T~e City covenants and agrees with the holders from time to time of the Bonds that it W~l not take or permit to be taken by any of its officers, employees or agents any ~_ctt~n which would cause the interest on the Bonds to become subject to · taxation u~er~he Internal Revenue Code of 1986, as amended (the Code), and the Treasury ~gu~ations promulgated thereunder, in effect at the time of such actions, and that it ~il] ~ake o1' cause its officers, employees or agents to take, all affirmative action within' i.t~ power that may be necessary to ensure that such interest will not become sut{j ;ct~o taxation under the Code and applicable Treasury Regulations, as presently 8: isting or as hereafter amended and made applicable to the Bonds. 7.02, ~ (a) The City will comply with requirements necessary under the Code to est ibltsh and maintain the exclusion from gross income of the interest on the B( nd$ under Section 103 of the Code, including without limitation require- ment~I relating to temporary periods for investments, limitations on amounts inve~ ed .~t a yield greater than the yield on the Bonds, and the rebate of exce$ i investment earnings to the United States if the Bonds (together with othe~ Iob~gations reasonably expected to be issued in calendar year 1993) excee~ t~e small-issuer exception amount of $5,000,000. SN059540