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pursuant to a First Amendment to Loan Agreement dated as of January 1, 2007 (the "First Amendment to Loan Agreement"), between the City and the Borrower, amending the Senior Bonds Loan Agreement. Under the Senior Bonds Loan Agreement, as so amended, the Borrower will be obligated to make payments at the times and in the amounts sufficient to provide for the prompt payment of principal of, premium, if any, and interest on the Series 2004 Bonds and the Refunding Bonds (together, the "Bonds") and all costs and expenses of the City incident to the issuance and sale of the Refunding Bonds. The Borrower has requested the refunding for the purposes described in Minnesota Statutes, Section 475.67, Subd. 3(b)(2)(iv). 1.04. The City desires to encourage the development of housing facilities designed for occupancy primarily by persons of low and moderate income, and the Project will assist the City in achieving these obi ectives. 1.05. The Lender has agreed, subject to the satisfaction of certain conditions, to facilitate the financing of the Project by providing credit enhancement and liquidity support for the Bonds pursuant to a credit facility. 1.06. Draft forms of the following documents relating to the Bonds have been prepared and submitted to this Council and are hereby directed to be filed with the City Clerk: (a) the First Supplemental Indenture; (b) the First Amendment to Loan Agreement; (c) a Bond Purchase Agreement (the "Refunding Bond Purchase Agreement"), proposed to be entered into with respect to the Refunding Bonds by the City, the Borrower and Dougherty & Company LLC (the "Underwriter"); (d) a Tax Compliance Agreement (the "Tax Compliance Agreement") proposed to be entered into by the City, the Borrower and the Trustee; (e) an Official Statement or other offering document (the "Official Statement") to be used in connection with the offer and sale of the Refunding Bonds by the Underwriter. In addition, in connection with the issuance of the Refunding Bonds, it is expected that the Mortgage, the Mortgage Assignment and the Subordination Agreement may be amended or supplemented, that the Subordinate Bonds Trust Indenture, the Subordinate Bonds Loan Agreement and certain other documents entered into in connection with the Subordinate Bonds may be discharged and that certain other orders, certificates and other documents may be required to be entered into by the City. All of the agreements, certifications and other documents described in this Section shall be referred to as the "Documents." Section 2. Findings. -3- 49