CC PACKET 08251992 - Laserfiche WebLink

Home Browse Search

securities sufficient to discharge the outstanding bonds pursuant to.Section 6 hereof prior to the issuance of such additional obligations or unless the Net Revenues of the Store in the last complete fiscal year immediately preceding the issuance of such additional obligations shall have been at least equal to 125% of the maximum amount of principal and interest to come due in any future fiscal year, during the remaining term of the outstanding bonds, on all of the outstanding bonds and on the additional obligations then proposed to be issued. Notwithstanding the above provisions, nothing in this resolution shall be construed to preclude the City from issuing additional bonds, whether constituting a general obligation of the City or payable solely from liquor store revenues, for construction, reconstruction or improvement of the Store, provided such additional bonds are expressly made a lien and charge on the Net Revenues of the Store subordinate and junior to that of the bonds payable form the Revenue Bond Account. Section 4. Covenants. The City of St. Anthony hereby certifies and represents to and covenants and agrees with the purchaser and holder from time to time of-each bond payable from the Revenue Bond Account as follows: 4.01. Ownership and Operating As long as any bonds payable from the Revenue Bond Account are outstanding, the City will continue its ownership and operation of the Store as a revenue-producing utility and convenience, in the manner authorized and subject to the restrictions imposed by the statutes and laws of the State of Minnesota. The City will maintain the buildings, furnishings, equipment and merchandise constituting the Store in good condition, and free from all liens, provided that purchase money liens may be created on merchandise acquired for resale, or such merchandise may be acquired subject to liens existing at the time of acquisition. The City will not authorize the establishment or operation of any other facility within the City for the off-sale of intoxicating liquors at retail, except as may be required by law. The City reserves the right to issue licenses for the establishment and operation of one or more facilities within the City for the on-sale of intoxicating liquors at retail. 4.02. Disposition of Property. If any properties constituting capital assets of the Store shall be sold and disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition shall be used either to procure other equivalent capital assets or deposited in the Revenue Bond Account and applied to pay principal of and interest on bonds payable therefrom. No such sales. or sales shall be made at times or prices such as the imperil the prompt and full payment of bonds payable from the Revenue Bond Account and the interest thereon. 4.03. Insurance. The City will procure and keep in force insurance on all buildings constituting the Store and the equipment and furnishings thereof and all stocks of merchandise, protecting against loss or damage by fire, tornado, II-3