81-2438 - Laserfiche WebLink

Home Browse Search

1. .. , ' ~I interest on the Note. (f) The Loan Agreement provides for payments by the Company to the Lender for the account of the City of such amounts as will be sufficient to pay when due the principal of, premium, if any, and interest on the Note. No reserve funds are deemed necessary for this purpose. The Loan Agreement obligates the Company to provide for the operation and maintenance of the Project, including the funds necessary to pay insurance premiums, taxes and special assessments. (g) Under the provisions of Section 474.10, Minnesota Statutes, and as provided in the Loan Agreement, the Note is not to be payable from nor charged upon any funds other than amounts payable by the Company pursuant to the Loan Agreement which are pledged to the payment thereof, or moneys received upon disposition of the Mortgaged Property under the Mortgage or under the Assignment1 the City is not subject to any liability thereon1 no holder of the Note shall ever have the right to compel the exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City; the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City other than its interest in the Loan Agreement; the Note shall recite that the Note, including interest thereon, shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers and that the Note does not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. 4.) Approval and Execution of Documents. The forms of the Loan Agreement, Loan Assignment~ Mortgage, Assignment, Disbursing Agreement and DiSbursing Agent's Agreement, described in paragraph 2, above, are hereby approved. The Loan Agreement and Loan Assignment shall be executed in the name and on behalf of the City by its Mayor and City Manager, or by other appropriate officers of the City authorized to execute documents on their behalf, in substantially the form on file, but with all such changes therein, not inconsistent with the Act or other law, as may be approved by officers executing the same, which approval shall be conclusively evidenced by the execution thereof. Copies of all documents shall be d'elivered and filed as provided therein. The Mortgage, Assignment, Disbursing Agreement~ and Disbursing Agent's Agreement may contain such revisions as may be approved by the Lender and the parties executing the same. 5.) Approval, Execution and Delivery of Note. At such time as the Company and the Lender desire to close the transactions authorized by this resolution, the City shall proceed to issue the Note, to be dated the date of delivery, in the principal amount of $450,000, in substantially the form and containing substantially the terms set forth in the form of Note attached hereto as Exhibit A, which terms are for this purpose 3.