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<br />20. Coveraqe Test. The City hereby finds, declares <br />and determines that the Tax Increments, together with other funds <br />herein pledged for the payment of the Bonds, will, if collected <br />when due, produce at least five percent (5%) in excess of the <br />amount needed to meet when due the principal and interest <br />paYments on the Bonds. <br /> <br />21. Defeasance. When all Bonds have been discharged <br />as provided in this paragraph, all pledges, covenants and other <br />rights granted by this resolution to the registered holders of <br />the Bonds shall, to the extent permitted by law, cease. The City <br />may discharge its obligations with respect to any Bonds which are <br />due on any date by irrevocably depositing with the Bond Registrar <br />on or before that date a sum sufficient for the paYment thereof <br />in full; or if any Bond should not be paid when due, it may <br />nevertheless be discharged by depositing with the Bond Registrar <br />a sum sufficient for the payment thereof in full with interest <br />accrued to the date of such deposit. The City may also discharge <br />its obligations with respect to any prepayable Bonds called for <br />redemption on any date when they are prepayable according to <br />their terms, by depositing with the Bond Registrar on or before <br />that date a sum sufficient for the paYment thereof in full, <br />provided that notice of redemption thereof has been duly given. <br />The City may also at any time discharge its obligations with <br />respect to any Bonds, subject to the provisions of law now or <br />hereafter authorizing and regulating such action, by depositing <br />irrevocably in escrow, with a suitable banking institution <br />qualified by law as an escrow agent for this purpose, cash or <br />securities described in Minnesota statutes, section 475.67, <br />Subdivision 8, bearing interest payable at such times and at such <br />rates and maturing on such dates as shall be required, subject to <br />sale and/or reinvestment, to pay all amounts to become due <br />thereon to maturity or, if notice of redemption as herein <br />required has been duly provided for, to such earlier redemption <br />date. <br /> <br />22. General Obligation Pledqe. For the prompt and <br />full paYment of the principal of and interest on the Bonds as the <br />same respectively become due, the full faith, credit and taxing <br />powers of the City shall be and are hereby irrevocably pledged. <br />If the balance in the Escrow Account or Debt Service Account is <br />ever insufficient to pay all principal and interest then due on <br />the Bonds payable therefrom, the deficiency shall be promptly <br />paid out of any other accounts of the City which are available <br />for such purpose, and such other funds may be reimbursed without <br />interest from the Escrow Account or Debt Service Account when a <br />sufficient balance is available therein. <br /> <br />26957 <br /> <br />39 <br />