|
such loans (the "Additional Loans ") to (i) the financing of the Project and (ii) the payment of a portion of
<br />the costs of issuing the Additional Notes; and
<br />WHEREAS, the Series 201113 Note will constitute a revenue obligation of the City secured solely
<br />by (i) the revenues derived from the Series 201113 Loan Agreement and (ii) certain security provided by
<br />the Borrower to the purchaser of the Series 201.113 Note including a mortgage lien on the Project and a
<br />guaranty from one or more guarantors related to the Borrower; and
<br />WHEREAS, the Series 201213 Note will constitute a revenue obligation of the City secured solely
<br />by (i) the revenues derived from the Series 2012B Loan Agreement and (ii) certain security provided by
<br />the Borrower to the purchaser of the Series 20128 Note including a mortgage lien on the Project and a
<br />guaranty from one or more guarantors related to the Borrower; and
<br />WHEREAS, Bremer Bank, National Association, a national banking association (the "Lender "),
<br />has agreed to purchase the Series 2011B Note and the Series 2012B Note in a manner consistent with the
<br />policies of the City relating to the issuance and sale of non -rated conduit revenue bonds; and
<br />WHEREAS, the loan repayments required to be made by the Borrower under the terms of the
<br />Series 2011B Loan Agreement will be assigned to the Lender under the terms of an Assignment of 1.,oan
<br />Agreement, dated on or after September 1, 2011 (the "Series 20118 Assignment "), between the City, the
<br />Borrower, and the Lender; and
<br />WHEREAS, the loan repayments required to be made by the Borrower under the terms of the
<br />Series 2012B Loan Agreement will be assigned to the Lender under the terms of an Assignment of Loan
<br />Agreement, dated on or after January 1, 2012 (the "Series 20128 Assignment "), between the City, the
<br />Borrower, and the Lender; and
<br />WHEREAS, the obligations of the Borrower under the terms of the Series 2011E Loan
<br />Agreement, the Series 20118 Assignment, the Series 201213 Loan Agreement, and the Series 2012B
<br />Assignment will be secured by a Mortgage, Security Agreement, Fixture Financing Statement, and
<br />Assignment of Leases and Rents, dated on or after September 1, 2011 (the "Mortgage "), from the
<br />Borrower in favor of the City and the Second Issuer, and an Assignment of Mortgage, Security
<br />Agreement, Fixture Financing Statement, and Assignment of Leases and Rents, dated on or after
<br />September 1, 2011 (the "Assignment of Mortgage "), from the City and the Second Issuer in favor of the
<br />Lender; and
<br />WHEREAS, the Series 201113 Note and the Series 201213 Note, and the interest on the
<br />Series 2011B Note and the Series 2012B Note: (i) shall not constitute general or moral obligations of the
<br />City and shall be payable solely from the revenues pledged therefor; (ii) shall not constitute a debt of the
<br />City within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise
<br />to a pecuniary liability of the City or a charge against its general credit or taxing powers; and (iv) shall not
<br />constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the
<br />City's interest in the Series 20118 Loan Agreement and the Series 2012B Loan Agreement.
<br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
<br />I.,ITTLE CANADA, MINNESOTA, AS FOLLOWS:
<br />4243192v2
<br />The Housing Program is hereby approved.
<br />3
<br />7
<br />
|