5.1. & 5.2. SR 11-10-2003 - Laserfiche WebLink

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16. Coverage Test; Certificate of Registration. It is hereby found and determined that the Net Revenues pledged herein for the payment of the Bonds will be available in amounts sufficient to produce at least five percent (5%) in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds. The City shall file a certified copy of this Resolution with the office of the County Auditor of Sherbume County and obtain the certificate of said office required by Minnesota Statutes, Section 475.63. 17. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith and credit and taxing powers of the 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 Bonds, 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 avaiable therein. To the extent that it shall ever be necessary to provide full and timely payment of the debt service on the Bonds, the City shall levy an ad valorem tax upon all taxable property within the City sufficient for such purposes. 18. Prior Bonds; Security. Until retirement and full payment of the Prior Bonds, all provisions heretofore made for the security thereof shall be observed by the City. 19. Redemption of Refunded Bonds. The outstanding Prior Bonds maturing in 2005 and thereafter shall be redeemed and prepaid on the Refunding Date (as described in paragraph 3 of this Resolution), and prior to said date, the paying agent/registrars for the Prior Bonds are hereby authorized and directed to cause notice of said redemption to be published and to be given to the owners of the Prior Bonds in such manner as may be required by law and by the terms of the Prior Bonds. 20. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 21. Negative Covenant as to Use of Proceeds and Improvements. The City hereby represents that it has not used, and hereby covenants that it will not use, and that it has not permitted and will not permit any such uses, the proceeds of the Bonds, or the Improvements, or the projects (the "Projects") financed by (or the proceeds of) the Prior Bonds in such a manner as to cause the Bonds or the Prior Bonds to be "private activity bonds" under Sections 103 and 141 through 150 of the Code. In particular, but without limitation, the City covenants to forebear the implementation, effectuation or enforcement of any and all contracts or other agreements respecting the Improvements, the Projects or any property benefitted thereby or assessed with respect thereto, S:\ADMIN\Resolutions\2003 Resolutions\ Unapproved\Bond2.DOC