2005-03-23 CC Packet - Laserfiche WebLink

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4. General Obligation Pledge. For the prompt and full payment of the principal and interest on the City Bond, as the same respectively become due, the full faith, credit and taxing powers ofthe City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the City Bond and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 5. Redemption. The Bond is subject to redemption and prepayment without penalty at the option of the City (a) on February 1, 2013 and any date thereafter at a price of par plus accrued interest; and (b) on any date prior to February I, 2013 at a price of par plus accrued interest together with any additional amount necessary to defease the portion of the Issuer Bonds equal to the outstanding principal amount of the City Bond, all in accordance with the Issuer Bond Resolution. Redemption may be in whole or in I1IHIltiples of $1,OOO,nart. upon 30 days' prior written notice to the Owner. If redemption is in part, the City may select the specific principal installments hereof, or applicable portions thereof, to be prepaid. 6. Defeasance. When the City Bond has been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered owner of the City Bond shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to the City Bond which is due on any date by irrevocably depositing with the City Finance Director on or before that date a sum sufficient for the payment thereof in full; or if the City Bond should not be paid when due, it may nevertheless be discharged by depositing with the City Finance Director a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to the City Bond called for redemption on any date when it is prepayable according to its terms, by depositing with the City Finance Director on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to the City Bond, subject to the provisions oflaw now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Miunesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 7. Refunding of Issuer Bond. The City ackoowledges that the Issuer Bonds are subject to redemption in connection with refunding in accordance with the Issuer Bond Resolution. Upon any refunding of the Issuer Bonds, the City will issue a replacement City Bond with a payment schedule adjusted to reflect the City's proportionate share of debt service due and payable on the Issuer's refunding bond. 8. Certificate of Registration and Levv of Ad Valorem Taxes. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Anoka County, together with such other information as the County Auditor shall require, and to I I L 1738630v2 3