4H, Resolution 2010-061 Giving Final Approval to the Proposed Issuance of Revenue Notes for Northwestern

Home Browse Search

required by Section 147(0 of the Code and applicable regulations) in a newspaper of general circulation at least fourteen (14) days prior to the Public Hearing date. 1.04. Pursuant to the requirements of Section 469.154 of the Act, the City prepared and submitted an Application (the "Application to the Minnesota Department of Employment and Economic Development "DEED for approval of the Project. On April 13, 2010, following the submission of the Application, the Commissioner of DEED approved the Project. 1.05. The Borrower has proposed that the Bonds be issued and sold to M &I Marshall Ilsley Bank, a state banking corporation organized under the laws of the State of Wisconsin (the "Purchaser 1.06. The Bonds will be issued under a Trust Indenture, dated on or after November 1, 2010 (the "Indenture between the City and U.S. Bank National Association (the "Trustee and the Bonds will be designated as the Adjustable Rate Revenue Bonds (Northwestern College Project), Series 2010, or such other name as may be designated by appropriate officers of the City. 1.7. The proceeds derived from the sale of the Bonds to the Purchaser are proposed to be loaned to the Borrower under the terms of a Loan Agreement, dated on or after November 1, 2010 (the "Loan Agreement between the City and the Borrower, and will be applied by the Borrower, together with other funds of the Borrower, to finance the acquisition, construction and equipping of the Project and the payment of certain expenses incurred in connection with the issuance of the Bonds. 1.8. The loan repayments to be made by the Borrower under the Loan Agreement will be assigned to the Trustee under the terms of the Indenture. 1.9. The Bonds and the interest and any premium on the Bonds: (i) shall be payable solely from the revenues pledged therefor; (ii) shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers; and (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City's interest in the Loan Agreement. 1.10. Forms of the following documents have been submitted to the City and are now on file with the City: (i) the Bonds; (ii) the Indenture; and (iii) the Loan Agreement (collectively, the "Bond Documents Section 2. The Bonds. 2.01. The City hereby approves the issuance and sale of the Bonds for the benefit of the Borrower in the maximum aggregate principal amount of $9,000,000 as contemplated by the Bond Documents now on file with the City. The City hereby approves the execution and delivery of the Bonds by the Mayor and the City Administrator of the City. As provided in the Loan Agreement, the Bonds shall not be payable from nor charged upon any funds other than the revenues pledged to their payment, nor shall the City be subject to any liability thereon, except as otherwise provided in this paragraph. No holder of the Bonds shall ever have the right to compel any exercise by the City of its taxing powers to pay any of the Bonds or the interest or premium thereon, or to enforce payment thereof against any property of the City except the interests of the City in the Loan Agreement and the revenues and assets thereunder, which will be assigned to the Trustee under the Indenture. The Bonds shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City, except the interests of the City in the Loan Agreement, and the revenues and assets thereunder, which will be assigned to the Trustee under the Indenture. The Bonds shall recite that the Bonds are issued pursuant to the Act, and that the Bonds, including interest and premium, if any, thereon, is payable solely from the revenues and assets pledged to the payment thereof, and the Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitations. 2