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 15:23/ST.15:19/N0.3560292541 P 5/8 (a) the Project furthers the policies of the Act; (b) the Project promotes the public welfare by providing necessary housing facilities, so that adequate housing facilities are available to residents of the State of Minnesota at a reasonable cost; (c) the Act authorizes the acquisition, construction and installation of the facilities and equipment to be financed by the Bonds, the issuance and sale of the Bonds, the execution and delivery by the City of the Loan Agreement, Regulatory Agreement, Indenture, the Mortgage, the Subordinate Mortgage and Bond Purchase Agreement (collectively the "Bond Documents "), the performance of all covenants and agreements of the City contained in the Band Documents, and the performance of all other acts and things required eerier the constitution and laws of the State of Minnesota to make the Bond Documents and Bonds valid and binding obligations of the City in accordance with their terms; (d) it is desirable that the Bonds be issued by the City upon the terms set forth in the Indenture; (e) the payments under the Loan Agreement are fixed to produce revenue sufficient to provide for the prompt payment of principal of, premium, if any, and interest on the Bonds issued under the Indenture when due, and the Loan Agreement and Indenture also provide that the Company is required to pay all expenses of the operation and maintenance of the facilities to be financed by the Bonds, including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and any taxes and special assessments levied upon or with respect to the premises of said facilities and payable during the term of the Loan Agreement and Indenture; (f) as provided in the Loan Agreement and Indenture, the Bonds are not to be payable from or charged upon any funds other than the revenue pledged to the payment thereof; the City is not subject to any liability thereon; no holder of any Bond shall ever have the right to compel any exercise by the City of its taxing powers to pay any of the Bonds or the interest or premium thereon, or to enforce payment thereof against any property of the city except the interests of the City in the Loan Agreement which have been assigned to the Bond Trustee under the Indenture; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the interests of the City in the Loan Agreement which have been assigned to the Trustee under the Indenture; the Bonds shall recite that the Bonds do not constitute or give rise to a pecuniary liability or f ial obligation of the City, the State of Minnesota or any o political subdivisions, and that the Bonds, including interest thereon, are payable solely from the revenues pledged to the payment thereof; and the Bonds shall nut constitute a debt of the 8077211.1 Page 14