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and to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used. (e) The issuance and sale ofthe $1,847,407 Commercial Development Revenue Note, Series 1999 (St. Annis Residential Services Project) (the "Note") by the City, pursuant to the Act, is in the best interest of the City, and the City hereby determines to issue the Note and to sell the Note to Liberty State Bank (the "Lender"), as provided herein. The City will loan the proceeds of the Note (the "Loan") to the Borrower in order to finance the Project. (t) Pursuant to a Loan Agreement (the "Loan Agreement") to be entered into between the City and the Borrower, the Borrower has agreed to repay the Note in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the construction, the maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City and the Borrower deem necessary or desirable for the financing of the Project. A draft of the Loan Agreement has been submitted to the City Council. (g) Pursuant to a Pledge Agreement (the "Pledge Agreement") to be entered into between the City and the Lender, the City has pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). A draft of the Pledge Agreement has been submitted to the City Council. (h) Pursuant to a Mortgage, Security Agreement and Fixture Financing Statement (the "Mortgage") to be executed by the Borrower in favor of the City, the Borrower has secured payment of amounts due under the Loan Agreement and Note by granting to the City a mortgage and security interest in the property described therein. Pursuant to an Assignment of Mortgage executed by the City (the "Assignment"), the City has assigned the Mortgage to the Lender. A draft of the Mortgage and Assignment have been submitted to the City. (i) Pursuant to a Joint Powers Agreement (the "Joint Powers Agreement") to be entered into among the City and the Cities of Maplewood, Minneapolis, Saint Paul and Richfield, Minnesota, (the "Host Cities"), the Host Cities have authorized the City to issue the Note on their behalf for the portion ofthe proceeds ofthe Note which will be expended within their boundaries. U) The Note will be a special limited obligation ofthe City. The Note shall not be payable from or charged upon any funds other than the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of the Note shall ever have the right to compel any exercise of the taxing power of the City to pay the Note or the 2 1096247. )