Laserfiche WebLink
relating to the legality and marketability' of the Bonds as the <br /> same appear from the books and records under their custody and <br /> control or as otherwise known to them, and all such certified <br /> copies, certificates and affidavits, including any heretofore <br /> furnished, shall be deemed representations of the City as to the <br /> facts recited therein. <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 /> 22 . Negative Covenant as to Use of Proceeds and <br /> Improvements. The City hereby covenants not to use the proceeds <br /> of the Bonds or to use the Improvements, or to cause or permit <br /> them to be used, or to enter into any deferred payment <br /> arrangements for the cost of the Improvements, in such a manner <br /> as to cause the Bonds to be "private activity bonds" within the <br /> meaning of Sections 103 and 141 through 150 of the Code. <br /> 23 . Tax-Exempt Status of the Bonds: Rebate. The City <br /> shall comply with requirements necessary under the Code to <br /> establish and maintain the exclusion from gross income under <br /> Section 103 of the Code of the interest on the Bonds, including <br /> without limitation (1) requirements relating to temporary periods <br /> for investments, (2) limitations on amounts invested at a yield <br /> greater than the yield on the Bonds, and (3) the rebate of excess <br /> investment earnings to the United States if the Bonds (together <br /> 1194249.1 25 <br />