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(c) Modification of Tax Covenants. The covenants of this section are <br /> specified solely to assure the continued exemption from regular income taxation of the interest <br /> on the Bonds. To that end, the provisions of this section may be modified or eliminated without <br /> any requirement for formal amendment thereof upon receipt of an opinion of the City's bond <br /> counsel that such modification or elimination will not adversely affect the tax exemption of <br /> interest on any Bonds. <br /> Section 11. Bond Fund and Provision for Tax Levy Payments. The Finance Director <br /> currently maintains a fund to be used for the payment of debt service on all limited tax general <br /> obligation bonds, designated as the "Bond Redemption Fund" (the "Bond Fund"). The taxes <br /> hereafter levied for the purpose of paying principal of and interest on the Bonds and other funds <br /> to be used to pay the Bonds shall be deposited in the Bond Fund no later than the date such funds <br /> are required for the payment of principal of and interest on the Bonds. Money in the Bond Fund <br /> not needed to pay the interest or principal next coming due may temporarily be deposited in such <br /> institutions or invested in such obligations as may be lawful for the investment of City funds. <br /> The City hereby irrevocably covenants and agrees for as long as any of the Bonds are <br /> outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax <br /> upon all the property within the City subject to taxation in an amount that will be sufficient, <br /> together with all other revenues and money of the City legally available for such purposes, to pay <br /> the principal of and interest on the Bonds as the same shall become due. All of such taxes so <br /> collected and any other money to be used for such purposes shall be paid into the Bond Fund. <br /> The City hereby irrevocably pledges that the annual tax provided for herein to be levied <br /> for the payment of such principal and interest shall be within and as a part of the tax levy <br /> permitted to cities without a vote of the people, and that a sufficient portion of each annual levy <br /> -28- P.\CMW\CMW5IL 12/06/02 <br />