Agenda - Council - 11/10/1981 - Laserfiche WebLink

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I i I I I i i I I I I '1 ,I I I I I I I (f) the loan payments contained in the Agreement are fixed and required to be revised from time to time as necessary, so as to produce income and revenue suf- ficient to provide for prompt payment of the principal of, premium, if any, and interest on the Note when due, and the Agreement also provides that the Borrower is required to pay all expenses of the operation and main- tenance of the Project, including, but not limited to, adequate insurance thereon and all taxes and special assessments levied upon or with respect to the Land and payable during the term of the Agreement; (g) under the provisions of Minnesota Statutes, Section 474.10, the Note is not to be payable from nor charged upon any funds of the Issuer other than the revenue pledged to the payment thereof; the Issuer is not subject to any liability thereon; no Holder of the Note shall ever have the right to compel any exercise of the taxing power of the Issuer to pay the Note or the interest thereon~ nor to enforce payment thereof against any property of the Issuer; the Note, premium, if any, and interest thereon shall not constitute an indebted- ness of the Issuer within the meaning of any constitu- tional or statutory limitation and shall not constitute or give rise to a pecuniary liability of the Issuer or charge against its general credit or taxing powers and shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Issuer other than its interest in the Project; (h) the execution and delivery of the Note, the Agreement and the Pledge Agreement shall not conflict with or constitute, on the part of the Issuer, a breach of or a default under any existing agreement, indenture, mortgage, lease or other instrument to which the Issuer is subject or is a party or by which it is bound; pro- vided that this finding is made solely for the purpose of estopping the Issuer from denying the validity of the Note, the Agreement or the Pledge Agreement by reason of the existence of any facts contrary to this finding; (i) no litigation is pending or, to the best know- ledge of the members of this City Council, threatened against the Issuer questioning the organization or boun- daries of the Issuer or the right of any officer of the Issuer to hold his or her office or in any manner ques- tioning the right and power of the Issuer to execute and deliver the Note or otherwise questioning the validity of the Note or the execution, delivery or validity of the Agreement or the Pledge Agreement or questioning the direction of revenues to payment of the Note or the right of the Issuer to loan the proceeds of the Note to the Borrower; - 5 -