RES 05-022 - Laserfiche WebLink

Home Browse Search

. . . for the financing of the Project. A draft of the Loan Agreement has been submitted to the City Council. (f) 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. (g) Pursuant to a Disbursing Agreement dated as of March 1, 2005, (the "Disbursing Agreement") by and between the Borrower, the City, the Lender and a disbursing agent, if other than the Lender, selected by the Lender, the parties thereto have provided certain terms for the disbursement ofthe proceeds of the Note. (h) The Note will be a special limited obligation of the 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 interest thereon, nor to enforce payment thereof against any property of the City. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. (i) It is desirable, feasible and consistent with the objects and purposes of the Act to issue the Note, for the purpose of financing the costs of the Project. 1.2 Authorization and Ratification of Proiect. The City has heretofore and does hereby authorize the Borrower, in accordance with the provisions of the Act and subject to the terms and conditions imposed by the Lender, to provide for the construction and equipping of the Project by such means as shall be available to the Borrower and in the manner determined by the Borrower, and without advertisement for bids as may be required for the construction and acquisition of other municipal facilities; and the City hereby ratifies, affirms, and approves all actions heretofore taken by the Borrower consistent with and in anticipation of such authority. SECTION 2. THE NOTE. 2.1 Authorized Amount and Form of Note. The Note issued pursuant to this Resolution shall be in substantially the form submitted to the City Council on the date hereof, and shall bear interest at the rates, mature in the years and amounts and be subject to redemption as therein specified, as such may be modified by agreement of the Lender, the Borrower and the City. The total aggregate principal amount of the Note that may be outstanding hereunder is expressly limited to $2,500,000, unless a duplicate Note is issued pursuant to Section 2.7; provided, however, the Note may be initially issued in a lesser maximum principal amount by agreement of the Borrower and the Lender. The offer of the Lender to purchase the Note at an aggregate purchase price of such amount as is actually disbursed thereunder is hereby accepted. 2.2 The Note The Note shall be dated for convenience of reference as of March 1, 2005, shall be payable at the times and in the manner, shall bear interest at the rate, and shall be subject to such other terms and conditions as are set forth therein. 1743229v4 2