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16. Deposit of Funds. Money in the funds and accounts created by this Resolution <br />will be kept separate from other municipal funds and deposited only in a bank or banks which <br />are members of the Federal Deposit Insurance Corporation ("FDIC"). Deposits which cause the <br />aggregate deposits of the City in any one bank to be in excess of the amount insured by FDIC <br />must be continuously secured in the manner provided by law for the investment of municipal <br />funds. In the event excess moneys are held in any of the funds created pursuant to Section 15 of <br />this Resolution, such excess moneys shall be applied and disbursed in accordance with the <br />Development Agreement. <br />17. Covenants Regarding Housing Improvements. The City hereby covenants with <br />the holders from time to time of the Bonds. as follows: <br />(a) The City has caused or will cause the Housing Fees for the Housing <br />Improvements in the Housing Improvement Area to be promptly levied against housing units in <br />such Area so that the first installment will be collectible not later than 2010 and will take all <br />steps necessary to assure prompt collection. The City Council will cause to be taken with due <br />diligence all further actions that are required under the Development Agreement for the <br />construction of the Housing Improvements financed wholly or partly from the proceeds of the <br />Bonds, and will take all further actions necessary for the final and valid levy of the Housing Fees <br />and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. <br />(b) In the event of any current or anticipated deficiency in Housing Fees (after taking <br />into account any revenues collected or anticipated to be collected under the Development <br />Agreement), the City Council will levy ad valorem taxes in the amount of the current or <br />anticipated deficiency. <br />(c) The City will keep complete and accurate books and records showing receipts and <br />disbursements in connection with the Housing Improvements, Housing Fees levied therefor and <br />other funds appropriated for their payment, collections thereof and disbursements therefrom, and <br />monies on hand. <br />18. Coverage Test. The estimated collections of Housing Fees are such that if <br />collected in full they, together with estimated collections of other revenues herein pledged for the <br />payment of the Bonds, will produce at least five percent in excess of the amount needed to meet <br />when due the principal and interest payments on the Bonds. Consequently, no taxes are levied at <br />the present time. <br />19. Defeasance. When all Bonds have been discharged as provided in this paragraph, <br />all pledges, covenants and other rights granted by this resolution to the registered holders of the <br />Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with <br />respect to any Bonds which are due on any date by irrevocably depositing with the Bond <br />Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond <br />should not be paid when due, it may nevertheless be discharged by depositing with the Bond <br />Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such <br />deposit. The City may also discharge its obligations with respect to any prepayable Bonds called <br />for redemption on any date when they are prepayable according to their terms, by depositing <br />with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, <br />17 <br />2377798v1 <br />