12-19-2007 Council Agenda - Laserfiche WebLink

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(e) Pursuant to a Loan Agreement, the Borrower has agreed to make repayments of the Loan in specified amounts and at specified times sufficient to pay in fittl when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City and the Borrower deem necessary or desirable for the financing of the Project. A draft of the Loan Agreement has been submitted to the City Council. (f) Pursuant to a Pledge Agreement (the "Pledge Agreement ") to be entered into between the City and the Lender, the City has pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). A draft of the Pledge Agreement has been submitted to the City Council. (g) Pursuant to a Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents, to be dated as of the date of the Note, by and between the Borrower, as mortgagor, and the Lender, as mortgagee, (the "Mortgage ") and a Security Agreement (the "Security Agreement ") to be dated as of the date of the Note, and to be executed by the Borrower in favor of the Lender, the Borrower has secured payment of amounts due under the Note by granting to the Lender a mortgage lien and security interests in the property described therein. (h) The Note will be a special limited obligation of the City. The Note shall not be payable from or charged upon any funds other than the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of the Note shall ever have the right to compel any 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 debt of the City within the meaning of any constitutional or statutory limitation. (i) It is desirable, feasible and consistent with the objects and purposes of the Act to issue the Note, for the purpose of refinancing the Project Indebtedness. 1.2 Authorization of the Loan. The City hereby authorizes and approves the making of the Loan to the Borrower pursuant to the terms of, and consistent with the provisions of, this Resolution, the Loan Agreement and the Pledge Agreement. 1.3 Authorization of the Forms of Documents. The forms of the Loan Agreement and the Pledge Agreement presented to the City Council at this meeting are hereby approved in all respects, and the Loan Agreement and the Pledge Agreement are authorized, together with other documents listed in Section 3.3 of this Resolution, to be executed on behalf of the City as set forth in Section 3.3 of this Resolution. All documents before this meeting and to be prepared subsequent to this meeting are subject to completion prior to issuance of the Note in a manner not inconsistent with this Resolution. 2110606v2 2