85-085 RES - Laserfiche WebLink

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. the Partnership to provide for the operation and maintenance of the Project Facilities, including adequate insurance, taxes and special assessments. (i) Under the provisions of Section 474.10 of the Act, and the Bond shall recite that, the principal of, premium (if any) and interest on the Bond are not to be payable from nor charged upon any funds other than amounts payable by the Partnership pursuant to the Loan Agreement which are pledged to the payment thereof, and, in event of default, moneys derived from foreclosure or other enforcement of the Mortgage, the Lease Assignment and the Guaranty Agreements; the City is not subject to any liability thereon; no Holder of the Bond shall ever have the right to compel the exercise of the 'taxing power of the City to pay the Bond, the premium (if any) or the interest thereon, nor to enforce payment thereof against any property of the City; the Bond shall not con- stitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Bond does not con- stitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. . (j) No member of the City Council (i) has a direct or indirect interest in the Project, the Loan Agreement, the Assignment or Bond, (ii) owns any capital stock of or other interest in the Project, the Partnership or the Bank, (iii) will be involved in supervising the completion of the Project on behalf of the Partnership, or (iv) will receive any commission, bonus or other remuneration for or in respect of the Project, the Loan Agreement or the Bond. 5. Approval and Execution of Documents. The forms of Mortgage, Loan Agreement, Lease Assignment, Guaranty Agreements and Assignment referred to in paragraph 3 are approved. The Loan Agreement and Assignment shall be executed in the name and on behalf of the City by the Mayor and the City Clerk-Administrator, in substantially the form on file, but with all such changes therein, not inconsistent with the Act or other law, as may be approved by the Mayor, the City Clerk-Administrator or the City Attorney, which approval shall be conclusively evidenced by the execution thereof. The Mortgage, the Lease Assignment and the Guaranty Agreements may contain such revisions as may be approved by the Bank, the Guarantors or the Partnership, as the case may be. . 6. Approval of Terms and Sale of Bond. The City shall proceed forthwith to issue its City of Elk River Industrial Development Revenue Bond (Scherer Limited Partnership Project), in the authorized principal amount of $1,400,000, substantially in the form, maturing, bearing interest, payable in the install- ments and otherwise containing the provisions set forth in the form of Bond attached hereto as Exhibit 1, which terms and provisions are hereby approved and incorporated in this Bond Resolution and made a part hereof. -4-