Laserfiche WebLink
jec~ to any liability thereon; no Holder of the Note shall <br />ever have the right to compel any exercise of the taxing <br />power of the City to pay the Note or the interest thereon, <br />nor to enforce .payment thereof against any property of the <br />City except the Project, or portions thereof, mortgaged or <br />.otherwise encumbered by the Mortgage; the Note issued <br />hereunder shall recite that the Note, including interest <br />thereon, is payable solely from the revenue under the Loan <br />Agreement pledged to the payment thereof; and the Note <br />shall not constitute a debt of the City within the meaning <br />of any constitutional, statutory or charter 'limitation; <br />provided, however, that nothing contained in this para- <br />graph (h) shall impair the rights of the Holder or Holders <br />of the Note to enforce covenants made for the security <br />thereof as provided in Minnesota Statutes 474.11. <br /> <br />Section 3. Auth0rization and Sale. <br /> <br />3.1. Authorization. The City is authorized' by the Act to <br />issue revenue bonds and loan the proceeds thereof to busi- <br />ness enterprises to finance the acquisition and construc- <br />tion of "projects" as defined in the Act, and to make all <br />contracts, execute all instruments and do all things <br />necessary or convenient in the exercise of such authority. <br /> <br />3.2. Preliminary City.Apprqv~l. By preliminary resolu- <br />tion duly adopted by the Council on February 12, 1979, <br />this Council approved the sale of industrial development <br />revenue bonds pursuant to the Act and the loan of the pro- <br />ceeds to the Borrower for the construction of the Project <br />and authorized the preparation of such documents as may be <br />appropriate to the Project. The Note constitutes an <br />industrial development revenue bond in contemplation of <br />the Act and said preliminary resolution. <br /> <br />3.3. Approval of Documents. PurSuant to the above, there <br />have been prepared and presented to this Council copies of <br />the following documents, all of which are now, or shall <br />be, placed on file in the office of the City Clerk: <br /> <br />(a) the Loan Agreement; <br /> <br />(b) the Pledge/Disbursement Agreement; <br /> <br />(c) the Mortgage; <br /> <br />(d) the Guaranty Agreement. <br /> <br />The forms of the documents listed in (a) through (d) above <br />are approved, with such variations, insertions and addi- <br /> <br /> <br />