80-2315 - Laserfiche WebLink

Home Browse Search

.' (g) 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 the prin- cipal of, premium, if any, and interest on the Note when due. 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 facilities, including provision for adequate insurance, taxes and special assessments. (h) Under the provisions of section 474.10 of the Act, the Note shall recite that 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 amounts are pledged to the payment thereof, or amounts payable under the Guaranty, and moneys derived from enforcement of the Lease Assignment and foreclosure or other enforcement of the Mortgage; the City is not subject to any liability thereon; 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 the general funds or property of .the City; the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Note does not constitute an indebted- ness of the City within the meaning of any constitu- tional or statutory limitation. (i) No member of the City Council (i) has a direct or indirect interest in the Project, the Loan Agreement, the Construction Loan Agreement, the I.oan Agreement Assignment or the Note, (ii) is related to either of the Borrowers, (iii) will be involved in supervising the completion of the Project, or (iv) will receive any commission, bonus or other remuneration for or in respect of the Project, .the Loan Agreement, the Construction Loan Agreement, the Loan Agreement Assign- ment or the Note, 5. Approval and Execution of Documents. The forms of Loan Agreement, the Construction Loan Agreement, Loan Agreement Assignment, Mortgage, Lease, Lease Assignment, Buy and Sell Agreement and Guaranty referred to in paragraph 3 hereof are approved. The Loan Agreement, the Construction Loan Agreement, and Loan Agreement Assignment shall be executed in the name and on behalf of the City by the Mayor, the City Manager and the City Clerk-Treasurer, or other appropriate officers of the City autho- rized to execute documents on the behalf of such officers, 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 the officers executing the same, which approval shall be conclu- sively evidenced by the execution thereof. The Mortgage, Lease, Lease Assignment, Buy and Sell Agreement and the Guaran.ty may -4-