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<br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />RESOLUTION NO. 92-~ <br /> <br />RESOLUTION AUTHORIZING <br />THE ISSUANCE AND SALE OF <br />$1,500,000 VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT <br />REVENUE BONDS, SERIES 1992 (TESCOM CORPORATION PROJECT) <br />TO FINANCE A PROJECT <br /> <br /> <br />BE IT RESOLVED by the Council of the City of Elk River, <br />Minnesota, as follows: <br /> <br />1. The Council has received a proposal from the Tescom <br />Corporation, a Minnesota corporation (the "Company") that the City <br />undertake to finance a certain Project as herein described, and <br />pursuant to Minnesota Statutes, Sections 469.152 through 469.165 <br />(the "Act"), through issuance by the City of its $1,500,000 <br />Variable Rate Demand Industrial Development Revenue Bonds, Series <br />1992 (Tescom Corporation Project) (the "Bonds"). <br /> <br />2. It is proposed that, pursuant to a Loan Agreement <br />dated as of June 1, 1992, between the City and the Company (the <br />"Loan Agreement"), the City loan the proceeds of the Bonds to the <br />Company to finance certain capital costs incurred by the Company in <br />connection with the construction and equipping of an approximately <br />30,000 sq. ft. manufacturing facility at 12616 Industrial Boulevard <br />in the City (The "Project"). The basic payments to be made by the <br />Company under the Loan Agreement are fixed so-as to produce revenue <br />sufficient to pay the principal of, premium, if any, and interest <br />on the Bonds when due. It is further proposed that the City assign <br />its rights to the basic payments and certain other rights under the <br />Loan Agreement to First Trust National Association in st. Paul, <br />Minnesota (the "Trustee") as security for payment of the Bonds <br />under an Indenture of Trust dated as of June 1, 1992 (the <br />"Indenture") . Payment of the Bonds is initially secured by an <br />irrevocable Letter of Credit to be issued by Norwest Bank <br />Minnesota, National Association in favor of the Trustee in an <br />amount equal to the principal amount of the Bonds plus certain <br />addi tional interest thereon. The Bonds are intended to be <br />privately placed with accredited investors by Norwest Bank <br />Minnesota, National Association (the "Placement Agent"). <br /> <br />3. Pursuant to the preliminary approval of the Council, <br />forms of the following documents have been submitted to the Council <br />for approval: <br /> <br />(a) The Loan Agreement <br /> <br />(b) The Indenture <br /> <br />633447 <br /> <br />2 <br />