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<br />ARTICLE VI <br /> <br />DEFEASANCE <br /> <br />This Loan Agreement shall continue to be obligatory and binding upon the Borrower in the <br />performance ofthe obligations imposed by this Loan Agreement and the repayment of all sums due <br />by the Borrower under this Loan Agreement shall continue to be secured by this Loan Agreement as <br />provided herein until all of the indebtedness and all of the payments required to be made by the <br />Borrower shall be fully paid to the Councilor the Trustee. Provided, however, if, at any time, the <br />Borrower shall have paid, or shall have made provision for payment of, the principal amount ofthe <br />Loan, interest thereon and redemption premiums, if any, with respect to the Bonds and shall have <br />paid all amounts due pursuant to Section 5.03 hereof, then, and in that event, the covenant regarding <br />the Non-Ad Valorem Revenues and the lien on the revem,J.es pledged, if any, to the Council for the <br />benefit of the holders of the Bonds shall be no longer in effect and all future obligations of the <br />Borrower under this Loan Agreement shall cease. For purposes of the preceding sentence, deposit of <br />sufficient cash and/or Governmental Obligations in irrevocable trust with a banking institution or <br />trust company, for the sole benefit of the Council in respect to which such Governmental <br />Obligations, the principal and interest received will be sufficient (as reflected in an accountants <br />verification report provided to the Trustee by the Borrower) to make timely payment of the principal, <br />interest and redemption premiums, if any, on the Outstanding Bonds, shall be considered "provision <br />for payment." <br /> <br />Nothing herein shall be deemed to require the Council to call any ofthe outstanding Bonds <br />for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to <br />impair the discretion of the Council in determining whether to exercise any such option for early <br />redemption. <br /> <br />Ifthe Borrower shall make advance payments to the Council in an amount sufficient to retire <br />the Loan ofthe Borrower, including redemption premium and accrued interest to the next succeeding <br />redemption date of the Bonds, all future obligations of the Borrower under this Loan Agreement <br />shall cease, including the obligations under Section 5.03 hereof, except as provided in Section 4.02 <br />hereof. However, prior to making such payments, the Borrower shall give at least 35 days= notice by <br />certified or registered mail to the Council. <br /> <br />23 <br />