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Section 4. Recitals Regarding the Borrower and the Financing Purposes. The Governing Body <br />makes the following recitals of fact: <br />a. Bond Counsel has represented to the Issuer that under the Acts, the Issuer is <br />authorized and empowered to issue revenue obligations for the Financing <br />Purposes; <br />b. The Borrower has represented to the Issuer that it is exempt from federal income <br />taxation under Section 501(a) of the Code, as a result of the application of <br />Section 501(c)(3) of the Code. The Borrower has further represented to the Issuer <br />that: (i) it is a Minnesota religious nonprofit corporation and organization described <br />in Section 501(c)(3) of the Code, the corporate offices of which are located at 3495 <br />Victoria Street North; (ii) it is engaged in Qualified Services and Activities; (iii) <br />conventional financing to refinance the Project is available only on a limited basis <br />and at such high costs of borrowing that the economic feasibility of its operations <br />would be significantly reduced; (iv) on the basis of information submitted to the <br />Borrower and their discussions with representatives of area financial institutions <br />and potential buyers of tax-exempt bonds, the Obligations could be issued and <br />sold upon favorable rates and terms to refinance the Project; (v) the Project would <br />not have been undertaken as described but for the availability of financing under <br />the Acts; and (vi) no public official of the Issuer has either a direct or indirect <br />financial interest in the Project nor will any public official either directly or indirectly <br />benefit financially from the Project. <br />C. The Borrower has agreed to pay the administrative fees of the Issuer and pay, or, <br />upon demand, reimburse the Issuer for payment of, any and all costs incurred by <br />the Issuer in connection with the issuance of the Obligations, whether or not the <br />Obligations are issued. <br />d. The Governing Body has relied without independent investigation on written <br />representations and opinions of the Borrower, its consultants, and Bond Counsel <br />that the Project to be refinanced by the Obligations qualifies as a "project" defined <br />in Sections 469.153, subdivision 2(b) and 469.155, subdivision 4, of the Acts. <br />Section 5. Findin s. The Governing Body finds, determines and declares as follows: <br />a. The welfare of the State requires the provision of necessary Qualified Services and <br />Activities so that adequate Qualified Services and Activities are available to <br />residents of the State at reasonable cost. <br />b. On the basis of information made available to the Issuer by the Borrower it <br />appears, and the Issuer finds, that: (i) the Project constitutes properties, used or <br />useful in connection with a revenue producing enterprise; (ii) the Project furthers <br />the purposes stated in the Acts; (iii) the Project would not have been undertaken <br />but for the availability of financing under the Acts and the willingness of the Issuer <br />to furnish financing; (iv) the Borrower is a "qualifying organization" under Section <br />469.155, subdivision 4 of the Acts; and (v) due, in part, to the ability to finance <br />and refinance the Project under the Acts, the Borrower has been able to and will <br />continue to provide adequate Qualified Services and Activities to residents at a <br />reasonable cost. <br />Page 4 <br />