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the Bonds matures or becomes due and payable, the City shall transmit sufficient funds, from the <br /> Debt Service Account or from other legally available sources to the Bond Registrar for the <br /> payment of such principal and/or interest. Money in the Debt Service Account not needed to pay <br /> the interest or principal next coming due may temporarily be deposited in legal investments for <br /> 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. <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 /> to be levied and collected by the City prior to the full payment of the principal of and interest on <br /> the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment <br /> of the principal of and interest on the Bonds. The full faith, credit and resources of the City are <br /> hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt <br /> payment of the principal of and interest on the Bonds as the same shall become due. <br /> Section 10. Defeasance. In the event that the City, in order to effect the payment, <br /> retirement or redemption of any Bond, sets aside in the Debt Service Account or in another <br /> special account, cash or noncallable Government Obligations, or any combination of cash and/or <br /> noncallable Government Obligations, in amounts and maturities which, together with the known <br /> earned income therefrom, are sufficient to redeem or pay and retire such Bond in accordance <br /> -1 8- P:\20287 CMW120287 8RS 02/08/10 <br />