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17. <br /> <br />18. <br /> <br />19. <br /> <br />20. <br /> <br />least five percent (5%) in excess of the amount needed to meet, when due, the <br />principal and interest payments on the Bonds. <br /> <br />General Obligation Pledge. For the prompt and full payment of the principal and <br />interest on the Bonds, as the same respectively become due, the full faith and credit <br />and taxing powers of the City shall be and are hereby irrevocably pledged. If the <br />balance in the Debt Service Account is ever insufficient to pay all principal and <br />interest then due on the Bonds, the deficiency shall be promptly paid out of any other <br />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 <br />balance is available therein. To the extent that it shall ever be necessary to provide <br />full and timely payment of the debt service on the Bonds, the City shall, pursuant to <br />the authority therefor described in this paragraph, levy an ad valorem tax upon all <br />taxable property within the City of Elk River, Minnesota, suff~cient for such <br />purposes. <br /> <br />Certificate of Registration. The City Clerk is hereby directed to file a certified copy <br />of this Resolution with the office of the Sherburne County Auditor to obtain the <br />certificate of said official required by Minnesota Statutes, Section 475.63. <br /> <br />Records and Certificates. The officers of the City are hereby authorized and directed <br />to prepare and furnish to the Purchaser, and to the attorneys approving the legality <br />of the issuance of the Bonds, certified copies of all proceedings and records of the <br />City relating to the Bonds and to the financial condition and affairs of the City, and <br />such other affidavits, certificates and information as are required to show the facts <br />relating to the legality and marketability of the Bonds as the same appear from the <br />books and records under their custody and control or as otherwise known to them, <br />and all such certified copies, certificates and affidavits, including any heretofore <br />furnished, shall be deemed representations of the City as to the facts recited therein. <br /> <br />Negative Covenant as to Use of Proceeds and Improvements. The City hereby <br />covenants not to cause or permit the Improvements to be used, or to enter into any <br />deferred payment arrangements for the cost of the Improvements, in such a manner <br />as (or to take any action or permit any other circumstance to exist or any action to be <br />taken, the effect to which would be) to cause the Bonds to be "private activity bonds" <br />within the meaning of Sections 103 and 141 through 150 of the Code. In particular, <br />but without limitation, the City covenants to forebear the implementation, <br />effectuation or enforcement of any and all contracts or other agreements respecting <br />the Improvements or any property benefitted thereby or ass essed with respect thereto, <br />which it may now or in the future have with developers, contractors, owners, lessees, <br />managers, or any other person or parties to the extent that such implementation, <br />effectuation or enforcement would (individually or in the aggregate) cause the Bonds <br />to become such "private activity bonds," and to said limited extent the City would <br /> <br />1217682.1 20 <br /> <br /> <br />