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06-14-2021 Council Packet
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06-14-2021 Council Packet
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City Council
Council Document Type
Council Packet
Meeting Date
06/14/2021
Council Meeting Type
Regular
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APPENDIX I <br />I-1 <br />PROPOSED FORM OF LEGAL OPINION <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> $ <br />City of Lino Lakes, Minnesota <br />General Obligation Street Reconstruction Bonds <br />Series 2021A <br /> <br /> <br />We have acted as bond counsel to the City of Lino Lakes, Minnesota (the “Issuer”) in connection <br />with the issuance by the Issuer of its General Obligation Street Reconstruction Bonds, Series 2021A (the <br />“Bonds”), originally dated July 15, 2021, and issued in the original aggregate principal amount of $ ____ . <br />In such capacity and for the purpose of rendering this opinion we have examined certified copies of certain <br />proceedings, certifications and other documents, and applicable laws as we have deemed necessary. <br />Regarding questions of fact material to this opinion, we have relied on certified proceedings and other <br />certifications of public officials and other documents furnished to us without undertaking to verify the same <br />by independent investigation. Under existing laws, regulations, rulings and decisions in effect on the date <br />hereof, and based on the foregoing we are of the opinion that: <br /> <br />1. The Bonds have been duly authorized and executed, and are valid and binding general <br />obligations of the Issuer, enforceable in accordance with their terms. <br /> <br />2. The principal of and interest on the Bonds are payable from ad valorem taxes, but if <br />necessary for the payment thereof additional ad valorem taxes are required by law to be levied on all taxable <br />property of the Issuer, which taxes are not subject to any limitation as to rate or amount. <br /> <br />3. Interest on the Bonds is excludable from gross income of the recipient for federal income <br />tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and estates <br />for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the <br />federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on <br />individuals, trusts and estates. However, such interest is subject to Minnesota franchise taxes on <br />corporations (including financial institutions) measured by income. The opinion set forth in this paragraph <br />is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of <br />1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest <br />thereon be, or continue to be, excludable from gross income for federal income tax purposes and from <br />taxable net income for Minnesota income tax purposes. The Issuer has covenanted to comply with all such <br />requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be <br />included in gross income for federal income tax purposes and taxable net income for Minnesota income tax <br />purposes retroactively to the date of issuance of the Bonds. We express no opinion regarding tax <br />consequences arising with respect to the Bonds other than as expressly set forth herein. <br /> <br />4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited <br />by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors’ rights <br />generally and by equitable principles, whether considered at law or in equity. <br /> <br /> Offices in <br /> Minneapolis <br /> Saint Paul <br /> St. Cloud <br />150 South Fifth Street <br />Minneapolis, MN 55402 <br />(612) 337-9300 telephone <br />(612) 337-9310 fax <br />www.kennedy-graven.com <br />Affirmative Action, Equal Opportunity Employer
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