01-22-1997 Council Agenda - Laserfiche WebLink

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provided by the Company, shall be applied to redemption of the outstanding Prior Bonds. The Bonds shall be in such principal amounts, shall bear interest at rates, shall be numbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, and shall be in such fol. uiand have such other details and provisions as may be prescribed in the Indenture, substantially in the form now on file with the City. The Bonds shall be special obligations of the City payable solely from the revenues provided by the GNMA Security and other funds pledged pursuant to the Indenture. The Bonds are not to be payable from nor charged upon any funds of the City other than the revenues pledged to their payment, nor is the City subject to any liability thereon; no holders of the Bonds shall ever have the right to compel any exercise of the taxing power of the City to pay any of the principal of, premium, if any, or interest on the Bonds; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, and each Bond shall recite that the Bonds, including interest thereon, are payable solely from the revenues pledged to the payment thereof and that no Bond shall constitute a debt of the City within the meaning of any constitutional or statutory limitation. The Bonds shall contain a recital that they are issued pursuant to the Act and such recital shall be conclusive evidence of the validity and regularity of the issuance thereof. 2. Terms of Bonds. The Bonds will bear interest at the rates set forth in the Indenture, will be in the principal amounts and will mature and be subject to redemption, all as set forth in the Indenture. Pursuant to a Financing Agreement to be dated as of January 1, 1997 (the "Financing Agreement "), the City will loan the proceeds of the Bonds to the Company to refinance the Project. The payments to be made by the Company under the Financing Agreement are fixed so as to produce revenue sufficient to pay the principal of, premium, if any, and interest on the Bonds when due. It is further proposed that the City assign certain rights under the Financing Agreement to the Trustee as security for payment of the Bonds under the Indenture. A Regulatory Agreement dated as of January 1, 1997 (the "Regulatory Agreement ") will be entered into, by and among the City, the Trustee and the Company. A Bond Purchase Agreement (the "Bond Purchase Agreement ") will be entered into by and among the City, the Trustee, the Company and Piper Jaffray Inc. (the "Purchaser "). 3. Forms of Documents Submitted. Pursuant to the preliminary approval of this Board, forms of the following documents have been submitted to the Board for approval: 775842.1 (a) the Financing Agreement; (b) the Indenture; (c) the Bond Purchase Agreement; and Page 5