12-02-1997 Council Agenda - Laserfiche WebLink

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FROM B&M FAX 612-334 -8650 VOICE 334 -8520 (TUE) 11.25' 97 15:22/ST. 15: 19/NO. 3560292541 P 4/8 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 Series 1997A Bonds will bear interest at the rates set forth in the Indenture, not to exceed k per annum, and will be in the principal amounts and will mature and be subject to redemption, all as set forth is the Indenture. The Series 1997B Bonds will bear interest at the rate set forth in the Indenture, not to exceed k per annum, and will mature and be subject to redemption, all as set forth in the Indenture. Pursuant to a Loan Agreement to be dated as of December 1, 1997 (the "Loan Agreement "), the City will loan the proceeds of the Bonds to the Company to finance the acquisition, rehabilitation of and improvement to, the Project. The payments to be made by the Company under the Loan 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 for payments of under he Bonds under ether the Indenture. as Regulatory Agreement dated as of December 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 Jaffrey 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 akrroval: (a) the Loan Agreement; Co) the Indenture; (c) the Bond Purchase Agreement; (d) the Regulatory Agreement; and (e) the Mortgage and the Subordinate Mortgage. 4. Findings. It is hereby found, determined and declared that: 609726.1 Page 13