Agenda Packets - 1984/11/26 - Laserfiche WebLink

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RESOLUTION NO. PAGE FOUR *12 *9. Depending on the facts, the City may require the applicant to establish and maintain a significant equity in the structure and to maintain a reserve balance or deposit of securities with or for the benefit of the City, or lease insurance to protect against a lease payment default, or satisfactory evidence of mortgage insurance, or a written conformation by a nationally known credit rating service that the bonds or other investment instruments carry at least an average investment grade rating. :}3r *10. The company will guarantee payment of lease installments for the life of the lease and maturity of the loan or of the bonds issued. A14- *11. The fair market rW a1 value for general purposes (not solely for the applicant's purpose) must at least equal the annu,1 principal and interest as they will become due during the life of the issue and the appraised value shall at least equal the principal amount of the loan or bonds to be issued. t}5_ *12. The applicant shall be required to complete the project as described from its own funds should the proceeds prove to be inadequate for the purpose. The applicant shall require a 100% performance bond of the building, electrical, mechanical and other contractors guaranteeing completion of the building according to specifications and within agreed contract prices. t}6_ *13. The applicant and its bond underwriter shall hold harmless the City, its officers, consultants and agents for any alleged or actual violation of any securitie laws, state or federal, in connection with the issuance of bonds or loans for the project. The City may require a surety bond to assure this "hold harmless" provision. A�sterTsked ftems apply part cularly if other than sophisticated buyer, non -recourse mortgage revenue note or bond financing is to be used.