02-28-2013 Council Agenda - Laserfiche WebLink

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2.2 No Liability of City. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Note, as amended, shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Note shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Note or the interest thereon, or to enforce payment thereof against any property of the City. The Note recites in substance that the Note, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. SECTION 3 MISCELLANEOUS 3.1 Qualified Tax Exempt Obligation. In order to qualify the Note, as amended, as a "qualified tax - exempt obligation" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations; (a) the Note, as amended, is not treated as a "private activity bond" under Section 265(b)(3) of the Code; (b) the City hereby designates the Note, as amended, as a qualified tax - exempt obligation for purposes of Section 265(6)(3) of the Code; (c) the reasonably anticipated amount of tax - exempt obligations (other than obligations described in clause (ii) of Section 265(b)(3)(C) of the Code) which will be issued by the City (and all entities whose obligations will be aggregated with those of the City) during the calendar year 2013 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during the calendar year 2013 have been designated for purposes of Section 265(b)(3) of the Code. The motion for the adoption of the foregoing resolution was duly seconded by member and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 5216515v1 4 6