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RESOLUTION NO. 1847 <br />PAGE THREE <br />5. The City will favor mortgage revenue, note or bond, <br />tax exempt financing to be assumed by a sophisticated <br />investor or investors without recourse to the City <br />and which imposes no collection or enforcement <br />obligations on the City and which eliminates any <br />possibility of the City or its officers being named <br />as a party in any litigation in the event of default <br />by the primary borrower or tenant of the premises. <br />The City will not be obligated to find another tenant <br />or buyer of the financed premises in the event of <br />default. <br />6. If, other than sophisticated buyer, non -recourse <br />mortgage revenue note or bond financing is to be <br />used, the City will not consider favorably, projects <br />the financing for which will be less than $750,000. <br />7. The applicant shall deposit not less than $500 with <br />the application to cover City adinistrative expenses <br />which deposit is non-refundable. <br />8. The City reserves the right to employ legal, <br />accounting, appraisal, financial, engineering, <br />architectural, and other consultants to review the <br />proposed project and its financing, and the cost, <br />together with administrative expense, shall be paid <br />by the applicant, whether or not the City agrees to <br />finance the project or whether or not it is built. <br />The City reserves the right to require a cash deposit <br />sufficient to cover such consulting costs. Any <br />unexpended balance of such deposit shall be returned <br />to the applicant if the project is approved, the City <br />will allow said expenses to become part of the <br />project cost financed. <br />*4. Depending on the facts, the City may require the <br />applicant to establish and maintain a significant <br />equity in the structure and to maintain a reserve <br />balance or deposit• of securities with or for the <br />benefit of the City, or lease insurance to protect <br />against a lease payment default, or satisfactory <br />evidence of mortgage insurance, or a written <br />conformance by a nationally known credit rating <br />service that the bonds or other investment <br />instruments carry at least an average investment <br />grade rating. <br />*10. The company will guarantee payment of lease <br />installments for the life of the lease and maturity <br />of the loan or of the bonds issued. 0 <br />