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It is hereby found, determined and declared that: (a) It is desirable that the Refunding Bonds be issued by the City upon the terms set forth in this resolution and the Senior Bonds Indenture, as amended by the First Supplemental Indenture (as so amended, the "Indenture'), under the provisions of which the City grants to the Trustee a security interest in certain revenues and payments to be received by the City under the Senior Bonds Loan Agreement, as amended by the First Amendment to Loan Agreement (as so amended, the "Loan Agreement") as security for the payment of the principal of, premium, if any, and interest on the Refunding Bonds. . I (b) The payments required to be made to the Trustee pursuant to the Loan Agreement are determined, and are required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of principal of and interest on all Bonds issued under the Indentures when due; and the Loan Agreement also provides that the Borrower is required to continue to pay all expenses of the operation and maintenance of the Project, including but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the site of the Project and payable during the term of the Loan Agreement. (c) The execution and delivery of the Documents and all other acts and things required under the Constitution and laws of the State of Minnesota to make the Documents and the Refunding Bonds valid and binding special, limited obligations in accordance with their terms, are authorized by the Act. Section 3. Authorization and Approval of Documents. The City is hereby authorized to issue the Refunding Bonds to provide funds, to be used, with other available funds, to refinance the Project and pay costs of issuance of the Refunding Bonds, and to pledge and assign the Loan Agreement and the loan repayments due thereunder, all as provided in the Loan Agreement and the Indenture. It is acknowledged that the purchase price of the Refunding Bonds, the principal amount of the Refunding Bonds, the initial reoffering prices of the Refunding Bonds, the maturity schedule of the Refunding Bonds, the provisions for redemption of the Refunding Bonds and the initial interest rate on the Refunding Bonds have not been determined as of the date of adoption of this resolution and are not reflected in the Indenture, the Loan Agreement or the Bond Purchase Agreement. The Mayor and the City Manager are hereby authorized to approve: (1) the purchase price of the Refunding Bonds; (2) the initial reoffering prices of the Refunding Bonds; (3) the maturity schedule of the Refunding Bonds, provided that the weighted average maturity of the Refunding Bonds shall not exceed the remaining weighted average maturity of the Subordinate Bonds; (4) the provisions for redemption of the Refunding Bonds; and (5) the initial interest rate on the Refunding Bonds. The approval of such officers of the terms of the Bonds shall be conclusively presumed by the execution of the Documents by said officers. In 50