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<br />the extent that such investment would cause the Certificates to be "federally guaranteed" within <br />the meaning of Section 149(b) of the Internal 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 Certificates there is hereby levied upon all of the taxable property in the City a <br />direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as <br />. part of other general property taxes. in the C-ity-fer the years. and -in the amounts as follows: <br /> <br />Year of Tax Levy <br /> <br />Year of Tax Collection <br /> <br />Amount <br /> <br />2007 <br />2008 <br />2009 <br />2010 <br />2011 <br /> <br />2008 <br />2009 <br />2010 <br />2011 <br />2012 <br /> <br />$175,230.12 <br />188,181.00 <br />187,490.63 <br />186,440.63 <br />185,193.75 <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 Certificates, will produce at least five percent (5%) in excess of <br />the amount needed to meet when due the principal and interest payments on the Certificates. <br />The tax levies shall be irrepealable so long as any of the Certificates are outstanding and unpaid, <br />provided that the City reserves the right and power to reduce the levies in the manner and to the <br />extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. <br /> <br />17. Defeasance. When all Certificates have been discharged as provided in this <br />paragraph, all pledges, covenants and other rights granted by this resolution to the registered <br />holders of the Certificates shall cease. The City may discharge its obligations with respect to any <br />Certificates which are due on any date by irrevocably depositing with the Registrar on or before <br />that date a sum sufficient for the payment thereof in full; or if any Certificate should not be paid <br />when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for <br />the payment thereof in full with interest accrued to the date of such deposit. The City may also <br />at any time discharge its obligations with respect to any Certificates, subject to the provisions of <br />law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, <br />with a 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, subject <br />to sale and/or reinvestment, to pay all amounts to become due thereon to maturity. <br /> <br />18. General Obligation Pledge. For the prompt and full payment of the principal and <br />interest on the Certificates, 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 Certificates <br />and any other certificates payable there from, the deficiency shall be promptly paid out of any <br />other funds of the City which are available for such purpose, and such other funds may be <br />reimbursed with or without interest from the Debt Service Account when a sufficient balance is <br />available therein. <br /> <br />1987047vl <br /> <br />13 <br />