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

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i I I I i I I I ! I I I I I I I I I I shall return to the Issuer any amount collected in excess of the tax-exempt rate in the event and for such period that the Borrower (as hereinafter defined) on behalf of. the IssueY shall establish by final adjudication that the Deter- mination of Taxability was erroneous; provided, however, that the Holder may retain and not return a portion of such amount equal to the amount of income tax or additions to tax the Holder paid in respect that the interest received which is not (for any reason) recovered by the Holder. Without limiting in anyway the survival of other provisions of this Notice, it is hereby expressly agreed that the provisions of this paragraph shall provide payment and discharge of the Note. A "Determination of Taxability" means the issuance of a statutory notice of deficiency by the Internal Revenue Ser- vice or a ruling of the National Office or any District Office of the Internal Revenue Service or a final decision of a cou~t of competent jurisdiction or a change in any applicable federal'statute which holds or provides in effect that the interest payable on this Note is includable in the gross income of the Holder of this Note for federal income tax purposes for any reason other than that the Holder is a substantial user or related person within the meaning of Section 103(b) (9) of the Code. The "Date of Taxability" means that time, as specified in the Determination of Taxability, as of which the interest payable on this Note becomes includable in the gross income of the Holder of this Note. The term "Prime Interest Rate" means the prime rate of interest upon ninety (90) day loans to the most responsible corporate, commercial borrowers, with the highest credit rating, in effect at the First National Bank of Minneapolis, Minneapolis, Minnesota, from time to time. Any change in the interest rate of this Note due to a change in the Prime. Interest Rate shall be deemed to have occurred on the day following the day on which the Prime Interest Rate changes. This Note is issued pUrsuant to the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended (the "Act"), and in conformity with the provi- sions, restrictions and limitations thereof. This Note, premium, if any, and interest hereon does not constitute an indebtedness.of the Issuer within the meaning of any consti- tutional or statutory limitation and does not constitute or give rise to a pecuniary liability of the Issuer or charge against its general credit or taxing powers and does not constitute a charge, lien or encumbrance, legal or equit- able, upon any property of the Issuer other than its inter- est in the Project. This Note, the interest hereon and any - 3 -