04-14-2021 Council Packet - Laserfiche WebLink

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29 Additional Bonds The Indenture allows the issuance of Additional Bonds on a parity with the Series 2021D Bonds if certain financial conditions are met. See Appendix D: “TRUST INDENTURE – Authorization of Additional Bonds.” Defeasance Upon certain terms and conditions specified in the Indenture, the Series 2021D Bonds or portions thereof will be deemed to be paid and the security provided in the Indenture, the Loan Agreement and the Subordinate Mortgage may be discharged prior to maturity or redemption of the Series 2021D Bonds upon the provision for the payment of such Series 2021D Bonds. In that case, the Series 2021D Bonds will be secured solely by the cash and securities deposited with the Trustee for such purpose. SECURITY FOR THE SERIES 2021D BONDS All quotations from, and summaries and explanations of, documents providing security for the Series 2021D Bonds referred to herein do not purport to be complete, and reference is made to said documents for full and complete statements of their provisions. All references herein to the Series 2021D Bonds and the security therefor are qualified by the definitive forms of the documents granting such security. See Appendix D: “CERTAIN DEFINITIONS AND SUMMARY OF DOCUMENTS” for a more complete summary of certain security documents. This Official Statement shall not be construed as constituting an agreement with purchasers of the Series 2021D Bonds. Limited Obligations THE SERIES 2021D BONDS WILL BE LIMITED OBLIGATIONS OF THE ISSUER AND WILL NOT CONSTITUTE A DEBT, LIABILITY, GENERAL OBLIGATION OR PLEDGE OF THE FULL FAITH AND CREDIT OF THE ISSUER, THE STATE OF MINNESOTA OR ANY POLITICAL SUBDIVISION THEREOF. THE ISSUANCE OF THE SERIES 2021D BONDS DOES NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE ISSUER, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF TO PAY THE SERIES 2021D BONDS FROM TAXES OR TO MAKE ANY APPROPRIATION THEREFOR. NO BONDHOLDER WILL HAVE THE RIGHT TO DEMAND PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2021D BONDS OUT OF ANY FUNDS OR FROM ANY SOURCES OF REVENUE OTHER THAN THOSE EXPRESSLY PLEDGED TO THE PAYMENT OF THE SERIES 2021D BONDS PURSUANT TO THE INDENTURE. Assignment of Loan Agreement; Loan Repayments Under the Indenture, the Issuer has pledged its interest in the Loan Agreement (including Loan Repayments by the Corporation, but excluding certain rights of the Issuer to payment of fees, expenses and indemnification) to the Trustee to secure the Series 2021D Bonds. Monthly Loan Repayments under the Loan Agreement will be paid directly to the Trustee and will be sufficient, if paid promptly and in full, to pay when due all principal of and interest on the Series 2021D Bonds. The Trustee is authorized to exercise the rights of the Issuer and enforce the obligations of the Corporation under the Loan Agreement. Subordinate Mortgage The Series 2021D Bonds and the obligations of the Corporation under the Loan Agreement will be secured by a Subordinate Construction Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents (the “Subordinate Mortgage”) from the Corporation to the Trustee. The Subordinate Mortgage provides a second mortgage lien on and security interest in the Project, and as described more particularly in the Subordinate Mortgage, subject to Permitted Encumbrances. Portions of the Mortgaged Property are subject to release from the Subordinate Mortgage prior to payment in full of the Series 2021D Bonds, pursuant to the applicable provisions of the Subordinate Mortgage and the Loan Agreement. Reserve Fund There is established with the Trustee under the Indenture, so long as any of the Series 2021D Bonds are outstanding, a Reserve Fund (the “Reserve Fund”) in amount equal to $[___________] (the “Reserve Requirement”).