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<br />. <br /> <br />4 <br /> <br /> <br />. <br /> <br />RESOLUTION NO. 91-71 <br /> <br />RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />ELK RIVER, MINNESOTA, APPROVING THE ISSUANCE <br />AND SALE OF THE CITY'S $1,000,000 VARIABLE RATE <br />DEMAND INDUSTRIAL DEVELOPMENT REVENUE BONDS <br />(TESCOM CORPORATION PROJECT) SERIES 1991 AND <br />AUTHORIZING THE APPROVAL AND EXECUTION OF <br />RELATED DOCUMENTS AND THE APPROVAL OF RELATED <br />MATTERS <br /> <br />WHEREAS, pursuant to and in accordance with the provisions of <br />Minnesota Statutes, Chapter 474 (as amended and restated in <br />Minnesota Statutes, Chapter 469, the "Act") and Resolution of the <br />City Council of the City of Elk River (the "City") adopted on <br />October 21, 1991, by appropriate action duly taken by the City, and <br />in furtherance of the purposes of the Act, the City previously <br />declared its preliminary intention to issue up to $1,000,000 of <br />Industrial Development Bonds and loan the proceeds thereof to <br />Tescom corporation, a Minnesota corporation (the "Company") in <br />order to provide financing for an expansion of industrial <br />facilities owned and operated by the Company in Elk River, <br />Minnesota (the "Project") (as defined in more detail in the Loan <br />Agreement); and <br /> <br />. <br /> <br />WHEREAS, the City is willing to issue its Variable Rate Demand <br />Industrial Development Revenue Bonds (Tescom Corporation Project), <br />Series 1991 in the principal amount of $1,000,000 (the "Series 1991 <br />Bonds"), pursuant to an Indenture of Trust dated as of December 1, <br />1991 between the City and The First National Bank in sioux Falls, <br />as Trustee (the "Indenture"), and to apply the proceeds of the <br />Series 1991 Bonds to pay the costs of the Project; and <br /> <br />WHEREAS, the issuance and sale of the Series 1991 Bonds (the <br />"Series 1991 Bonds") and deposit of the proceeds thereof in the <br />Construction Fund as provided in the Indenture for the purpose of <br />paying the Costs of the proj ect shall constitute a loan of <br />$1,000,000 to the Company as provided in the Loan Agreement dated <br />as of December 1, 1991 between the City and the Company (the "Loan <br />Agreement"); and <br /> <br />WHEREAS, to secure the Series 1991 Bonds and paYments under <br />the Loan Agreement and the performance of other obligations of the <br />Company, the Company will cause to be issued to the Trustee an <br />irrevocable letter of credit (the "original Letter of Credit") by <br />Norwest Bank Minnesota, National Association (the "Bank") in an <br />amount equal to the principal amount outstanding on the Bonds <br />together with interest thereon for a period of 50 days at a maximum <br />rate of 12% per annum; and <br />