6.3.B. SR 06-16-2008 - Laserfiche WebLink

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3. Purpose; Cost. The proceeds of the Note shall provide funds to finance construction of the Project. The total cost of the construction of the Project, including legal and other professional charges, publication and printing costs, interest accruing on money borrowed for the Project before the collection of future Municipal State-Aid Street funds appropriated therefor, and all other costs necessarily incurred and to be incurred from the inception to the completion of the Project, is estimated to be at least equal to the aggregate principal amount of the Note. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. The average annual amount of principal and interest due in all subsequent calendar years on the Note payable from the City's account of the Municipal State-Aid Street Fund ($ )does not exceed ninety percent of the amount of the last annual allotment preceding the issuance of the Note received by the City from the Construction Account of the Municipal State-Aid Street Fund ($ ). 4. Redemption. The Note shall be subject to redemption and prepayment in whole or in part at the option of the City or mandatorily as provided in the Project Loan Agreement. If redemption is in part, installments of principal payable last under the Note shall be prepaid first, unless the City and the holder of the Note agree to a different result. 5. Registration of Note. At the time of issuance and delivery of the Note, the officer of the City performing the functions of the treasurer (the "Finance Director") shall register the Note in the name of the payee in a note register which he and his successors in office shall maintain for the purpose of registering the ownership of the Note. The Note shall be prepared for execution with an appropriate text and spaces for notation of registration. The force and effect of such registration shall be as stated in the form of Note hereinafter set forth. Payment of principal installments and interest, whether upon redemption or otherwise, made with respect to the Note, may be made to the registered holder thereof or to the holder's legal representative, without presentation or surrender of the Note. 6. Form of Note. The Note, together with the Certificate of Registration attached thereto, shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA SHERBURNE COUNTY CITY OF ELK RIVER $2,431,500 GENERAL OBLIGATION STATE-AID LOAN NOTE OF 2008 The City of Elk River, Sherburne County, Minnesota (the "City"), certifies that it is indebted and for value received promises to pay to the Minnesota Public Facilities Authority or the registered assign, the principal sum of TWO MII.LION FOUR HUNDRED THIRTY ONE THOUSAND FNE HUNDRED DOLLARS, or so much thereof as shall have been disbursed, on August 20 in the years and installments as follows: 2170696v1