08-14-2002 Council Agenda - Laserfiche WebLink

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AUG OS 300E 4:38 PM FR BRIGGS & MORGAN Y3 RIG GS AND MORGAN August 6, 2002 Page 2 TO 33514844538 P.03 thereon, or to enforce payment of the Note against any property of the City except the interests of the City in payments to be made by the Borrower under the Loan Agreement, The Note will not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the interests of the City in payments to be made by the Borrower under the Loan Agreement. The Note is not a moral obligation on the part of the State or its political subdivisions, including the Oily, wid the Nete will uol nwliluty a lebt of the City within the uieuiiing of tiny constitutional or statutory limitation. The Note will be designated as Bank Qualified. Consequently, the City will have to factor the Note into its $10,000,000 limit leaving a cap of $8,600,000 available for other obligations that may be issued by the City this year for governmental purposes or other nonprofit borrowers. Issuing the Note will not affect the credit rating of the City on bonds it issues for municipal purposes. Under Federal and State law in order for the Note to be a tax exempt obligation, it must be issued by a political subdivision, This requires that the City hold a public hearing and approve issuance of the Note and the execution related documents. If you have any questions please don't hesitate to contact me. Very truly yours, enny VGrdifi I431603v,