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CITY OF LITTLE CANADA, <br />RAMSEY COUNTY, MINNESOTA <br /> <br />RESOLUTION NO. 2017-10-187 <br /> <br />APPROVING THE TERMS OF AN INTERNAL LOAN IN CONNECTION WITH THE <br />CANABURY SQUARE CONDOMINIUM ASSOCATION <br />HOUSING IMPROVEMENT AREA TO PAYOFF THE OUTSTANDING DEBT FOR THE <br />TAXABLE G.O. HIA BONDS, SERIES 2009A <br /> <br /> <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LITTLE <br />CANADA, MINNESOTA ("CITY") AS FOLLOWS: <br /> <br />Section 1. Background. <br /> <br />1.1. The City has outstanding debt associated with Taxable General Obligation <br />Housing Improvement Area Bonds, Series 2009A totaling $1,200,000 for the years 2019 through <br />2024. <br /> <br />1.2. The City has determined to use an internal loan to pay off the outstanding debt <br />to generate interest savings associated with debt service and to generate interest earnings through <br />an interfund loan that will finance the payoff. The Water & Sewer Capital Replacement Fund <br />#604 (the “Fund”), which fund is administered by the City and has a balance that is legally <br />available for such purposes. <br /> <br />1.3. The City intends to reimburse the Fund for the payoff proceeds from future <br />housing improvement area fees or other available City funds in accordance with the terms of <br />this resolution (which terms are referred to collectively as the (“Internal Loan”). <br /> <br />Section 2. Terms of Internal Loan. <br /> <br />2.1. The City shall transfer $1,200.000 from the Water & Sewer Capital Replacement <br />Fund #604 to the Canabury Square HIA Fund #362 to pay off the outstanding principal amount <br />of Taxable HIA Bonds of 2009 due for the period of 2/1/2019 through 2/1/2024. Interest on <br />this Internal Loan shall be at four percent per annum (4%). <br /> <br />2.2. Principal and interest ("Payments") shall be paid semi-annually on each <br />February 1 and August 1 (“Payment Dates”), commencing on February 1, 2019 (the first <br />Payment Date) after receipt of the first housing improvement area fee proceeds after <br />disbursements from the Fund and continuing through the date the principal and accrued interest <br />of the Internal Loan is paid in full. <br /> <br />2.3. The principal sum and all accrued interest payable under this Internal Loan are <br />pre-payable in whole or in part at any time by the City without premium or penalty. <br />