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RESOLUTION NO. <br />RESOLUTION AUTHORIZING THE EXECUTION <br />AND DELIVERY OF A FIRST SUPPLEMENTAL <br />INDENTURE OF TRUST AND A FIRST AMENDMENT <br />TO LOAN AGREEMENT RELATING TO THE $7,700,000 <br />MULTIFAMILY HOUSING REVENUE BONDS, <br />SERIES 1986 (CEDARS LAKESIDE LIMITED <br />PARTNERSHIP PROJECT) AND RELATED DOCUMENTS <br />BE IT RESOLVED by the City Council of the City of Little <br />Canada, Minnesota (the "City ") as follows: <br />1. The City issued its $7,700,000 Multifamily Housing <br />Revenue Bonds, Series 1986 (Cedars Lakeside Project) dated August <br />1, 1986 (the "Bonds ") pursuant to an Indenture of Trust (the <br />"Indenture ") dated August 1, 1986 between the City and First Trust <br />Company, Inc., now know as First Trust National Association (the <br />"Trustee ") and lent the proceeds of the Bonds to Cedar Lakeside <br />Limited Partnership, a Minnesota limited partnership (the <br />"Company ") pursuant to a Loan Agreement dated as of August 1, 1986 <br />(the "Loan Agreement "). <br />2. <br />reason of <br />the Loan <br />contained <br />The Company is in default under the Loan Agreement by <br />its failure to make the basic loan repayments due under <br />Agreement and for breach of certain other covenants <br />in the Loan Agreement. <br />3. Pursuant to an Order dated April 25, 1992 In re: Cedars <br />Lakeside Limited Partnership (the "Order "), the United States <br />Bankruptcy Court, District of Minnesota confirmed the plan filed by <br />the Company under 11 U.S.C. §1129 on March 23, 1992 (the "Plan ") <br />which affects the terms of repayment of the Bonds and the <br />obligations of the Company under the Loan Agreement and Mortgage <br />relating to the Bonds. <br />4. Section 10 -1(7) of the Indenture authorizes the Trustee <br />to modify, eliminate and /or add to the provisions of this Indenture <br />to such extent as shall be necessary to prevent any interest on the <br />Bonds from becoming taxable under the federal income tax laws <br />without formal Bondholder consent. <br />5. In order to comply with the terms of the Plan and to <br />assure that interest on the Bonds does not become taxable, it is <br />necessary to amend the Indenture pursuant to the proposed First <br />Supplemental Indenture of Trust dated as of May 26, 1992 between <br />the City and Trustee (the "Supplement ") and consented to by the <br />Company, a form of which has been submitted to the City Attorney <br />and City staff for their review. It is also necessary to amend the <br />Loan Agreement pursuant to the First Amendment to Loan Agreement <br />631019 <br />Page 6 <br />