|
•
<br />•
<br />•
<br />WHEREAS, the Borrower has requested that the Issuer issue revenue obligations to be
<br />designated the Revenue Note (YMCA Project), Series 2006A (the "Series 2006A Note "), in the
<br />original aggregate principal amount of $3,500,000 and the Revenue Note (YMCA Project),
<br />Series 2006B (the "Series 2006B Note," and together with the Series 2006A Note, the "Notes "),
<br />in the original aggregate principal amount of $500,000 and apply the proceeds of the Notes to
<br />finance the construction and equipping of the Project and to pay certain financing and issuance
<br />costs related to the Notes; and
<br />WHEREAS, the Notes are to be issued under the terms of this resolution and sold to
<br />Patriot Bank, a state banking association (the "Lender") and the proceeds derived from the sale
<br />of the Notes are to be loaned to the Borrower pursuant to the terms of a Loan Agreement, to be
<br />dated on or after April 1, 2006 (the "Loan Agreement "), between the Issuer and the Borrower;
<br />and
<br />WHEREAS, from and after the date of issuance of the Notes, the proceeds of the Notes
<br />in the amount of $4,000,000 are to be disbursed to the Borrower in accordance with the terms of
<br />a Disbursing Agreement, to be dated on or after April 1, 2006 (the "Disbursing Agreement "),
<br />between the Issuer, Borrower, and the Lender, and a title insurance company selected by the
<br />Borrower and acceptable to the Lender, and applied to the payment of a portion of the costs of
<br />the construction and equipping of the Project, the payment of the costs of issuing the Notes, and
<br />the payment of financing costs with respect to the Notes; and
<br />WHEREAS, in consideration of the loan by the Issuer of the proceeds of the Notes to the
<br />Borrower and to secure the payment of the principal of, premium, if any, and interest on the
<br />Notes when due, the Borrower will provide certain security for the Notes in accordance with the
<br />terms and conditions of the Loan Agreement, including a Combination Mortgage, Security
<br />Agreement, Fixture Financing Statement and Assignment of Leases and Rents, to be dated on
<br />or after April 1, 2006 (the "Mortgage ") between the Borrower, as mortgagor, and the Lender, as
<br />mortgagee; and
<br />WHEREAS, the loan repayments required to be made by the Borrower under the terms
<br />of the Loan Agreement will be assigned by the Issuer to the Lender under the terms of an
<br />Assignment of Loan Agreement, to be dated on or after April 1, 2006 (the "Assignment "),
<br />between the Issuer, the Lender, and the Borrower; and
<br />WHEREAS, the principal of, premium, if any, and interest on the Notes: (i) shall be
<br />payable solely from the revenues pledged therefor; (ii) shall not constitute a debt of the Issuer
<br />within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give
<br />rise to a pecuniary liability of the Issuer or a charge against the general credit or taxing powers
<br />of the Issuer; and (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable,
<br />upon any property of the Issuer other than the Issuer's interest in the Loan Agreement;
<br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE ISSUER AS
<br />FOLLOWS:
<br />1. The Issuer acknowledges, finds, determines, and declares that the issuance of
<br />the Notes is authorized by the Act and is consistent with the purposes of the Act and that the
<br />issuance of the Notes and the other actions of the Issuer under the Loan Agreement and this
<br />resolution constitute a public purpose and are in the best interests of the City.
<br />LinoLakesvC -
<br />2
<br />
|