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<br />e <br /> <br />RESOLUTION 95 - 9L <br />A RESOLUTION FOR THE CITY OF ELK RIVER <br /> <br />A RESOLUTION APPROVING EXTENSION AGREEMENT FOR <br />INDUSTRIAL DEVELOPMENT REVENUE BOND <br />(JAY MORRELL & JOHN PLAISTED PARTNERSHIP PROJECT) <br /> <br />'WHEREAS, pursuant to a Loan and Purchase Agreement dated as of <br />December 1, 1985 (the "Loan Agreement"), among the City of <br />Elk River (the "City"), Jay Morrell and John Plaisted <br />Partnership, a Minnesota general partnership (the <br />"Partnership"), and Highland Bank (formerly Security State <br />Bank of St. Michael), a Minnesota banking association (the <br />"Bank"), the City has issued its $400,000 City of Elk River <br />Industrial Development Revenue Bond (Jay Morrell and <br />John Plaisted Partnership Project) (the "Bond") to the Bank <br />and loaned the proceeds of the Bond to the Partnership; and, <br /> <br />e <br /> <br />'WHEREAS, the Loan Agreement obligates the Partnership to make Loan <br />Repayments in amounts and at times sufficient to pay <br />principal of and interest on the Bond; and, <br /> <br />\VHEREAS, John Plaisted and the Bank have represented to the City <br />that the Partnership has been dissolved, the Bank has <br />released Jay Morrell from all obligations under the Loan <br />Agreement and the Bond, and John Plaisted (the "Borrower") <br />is the successor in interest to the Partnership and has <br />assumed the obligations of the Partnership under the Loan <br />Agreement and the Bond; and, <br /> <br />'WHEREAS, the Bond bears interest at a variable rate that is adjusted <br />quarterly, on January 1, April 1, July 1, and October 1 of <br />each year, to equal the rate which is one percent per annum <br />above the bond equivalent yield on United States Treasury <br />bills having maturities of 180 days, as established on the <br />date of each such interest rate adjustment, but which rate <br />shall never be less than 7.00 percent per annum nor greater <br />than 13.00 percent per annum; and, <br /> <br />e <br /> <br />'WHEREAS, the Bond is payable in monthly installments of principal and <br />interest (the amount of which is adjusted on each interest <br />rate adjustment date), based on a twenty-year amortization <br />schedule, which payments commenced on February 1, 1986; <br />and, <br />