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ESOLUTION NO. <br />PAGE FIVE <br />'44 <br />*14. Rent for the project shall be paid not less than <br />monthly into a special City account with the trustee <br />and the trustee shall be ro-luired to invest cumulated <br />rent until needed to pay principal and interest on <br />the bonds or loan. In addition, the bond proceeds <br />including any reserves or capitalized interest for <br />the project shall be invested. Investment earnings <br />shall accrue to the benefit of the City and any <br />excess not needed for debt service shall be paid over <br />to the City not less than annually, and such amounts <br />may be used for any lawful City purpose. <br />-18 <br />15. In consideration of the City's acting as a financing <br />conduit, lending its tax exempt status to the <br />project, the applicant shall pay to the City from the <br />loan proceeds the sum of 1% of the first $1 million <br />principal amount of the loan and 1/2 of 1% of any <br />principal in excess of $1 million, which shall be <br />used by the City for general commercial and <br />industrial development purposes or for any other <br />applicant to enter this cost into the project cost <br />for financing purposes. <br />-}9; <br />16. The City reserves the right to deny any application <br />for any reason and to revoke approval of an <br />application at any time before actual issuance of <br />bonds or a loan without liability of the City, its <br />councilmembers, officers, or agents to the applicant, <br />the underwriter, attorneys or other counsel <br />associated with the project. The City's position is <br />that no applicant has a right to have the City <br />finance any such project and in submitting such an <br />application, the application recognizes and accepts <br />that policy decision whether or not these guidelines <br />are followed in other respects. <br />-20 <br />17. The City reserves the right to discontinue the <br />financing at any time prior to actual issuance of the <br />bonds or note(s) without any stated reason or <br />justification to the applicant, in which event the <br />applicant shall have no right to recover any allegod <br />or actual damages from the City and no right to <br />require the City to complete the financing. <br />1J <br />