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<br />follows: <br /> <br />The tax levies are such that if collected in full (together with taxes levied in 2004 as <br />described above) will produce the 105% of the amount needed to meet when due the principal <br />and interest payments on the City Bond. The tax levies shall be irrepealable so long as the City <br />Bond is outstanding and unpaid, provided that the City reserves the right and power to reduce the <br />levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, <br />Subdivision 3. <br /> <br />4. General Obligation Pledge. For the prompt and full payment of the <br />principal and interest on the City Bond, as the same respectively become due, the full faith, <br />credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance <br />in the Debt Service Account is ever insufficient to pay all principal and interest then due on the <br />City Bond and any other bonds payable therefrom, the deficiency shall be promptly paid out of <br />any 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 />5. Redemption. The Bond is subject to redemption and prepayment without <br />penalty at the option of the City ( a) on February 1, 2013 and on any date thereafter at a price of <br />par plus accrued interest; and (b) on any date prior to February 1, 2013 at a price of par plus <br />accrued interest together with any additional amount necessary to defease the portion of Issuer <br />Bonds equal to the outstanding principal amount of the City Bond, all in accordance with the <br />Issuer Bond Resolution. Redemption may be in whole or in part, upon 30 days' prior written <br />notice to the Owner. If redemption is in part, the City may select the specific principal <br />installments hereof, or applicable portions thereof, to be prepaid. <br /> <br />6. Defeasance. When the City Bond has been discharged as provided in this <br />paragraph, all pledges, covenants and other rights granted by this resolution to the registered <br />owner of the City Bond shall, to the extent permitted by law, cease. The City may discharge its <br />obligations with respect to the City Bond which is due on any date by irrevocably depositing <br />with the City Finance Director on or before that date a sum sufficient for the payment thereof in <br />full; or if the City Bond should not be paid when due, it may nevertheless be discharged by <br />depositing with the City Finance Director a sum sufficient for the payment thereof in full with <br />interest accrued to the date of such deposit. The City may also discharge its obligations with <br />respect to the City Bond called for redemption on any date when it is prepayable according to its <br />terms, by depositing with the City Finance Director on or before that date a sum sufficient for the <br />payment thereof in full, provided that notice of redemption thereof has been duly given. The <br />City may also at any time discharge its obligations with respect to the City Bond, subject to the <br />provisions of law now or hereafter authorizing and regulating such action, by depositing <br />irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for <br />this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, <br />bearing interest payable at such times and at such rates and maturing on such dates as shall be <br />required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to <br />maturity or, if notice of redemption as herein required has been duly provided for, to such earlier <br />redemption date. <br /> <br />7. Refunding of Issuer Bond. The City acknowledges that the Issuer Bonds <br />are subject to redemption in connection with refunding in accordance with the Issuer Bond <br /> <br />1738630v2 3 <br />