1998-05-01-R - Laserfiche WebLink

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then expended by the Company for the Project or portion thereof to be financed by the Bonds then issued (including, at the Company's option, any costs of interim financing), the Project or portion thereof theretofore acquired, constructed and equipped. There shall also be conveyed to the City any easements and rights-of-way necessary to permit the construction, equipping, operation and maintenance of the Project. 3. Lease. The City and the Company shall enter into a lease agreement under which the Company will lease the Project, with an option to purchase for a nominal price, from the City and will agree to make rental payments sufficient to pay the principal of and premium, if any, and interest on the Bonds, together with all charges of any trustee and/or any paying agent for the Bonds. 4. Sale of Bonds; Security. The City will take such steps as are necessary to issue, sell and deliver the Bonds, pursuant to the terms of the Act, for the purpose of financing the costs of the Project in the aggregate amount necessary to furnish the permanent financing of all or any part of the costs of accomplishing the Project, in each case only upon receipt of a written designation by the Company of the purchaser(s) or underwriter(s) thereof. It is presently estimated by the Company that Bonds in the aggregate principal amount of not to exceed $7,000,000 will be issued. However, the City's commitment is to issue the Bonds, pursuant to the terms of the Act, in such amounts as shall be requested by the Company for accomplishing all or any part of the Project, whether or not such amounts are more or less than the above estimate and whether or not the facilities and improvements finally acquired, constructed and equipped are identical to or different from the facilities presently expected to constitute the Project. The Bonds shall mature in such amounts and times and shall bear interest at such rate or rates, to be payable on such date or dates, and to have such optional and mandatory redemption features and prices as are mutually agreed upon in writing by the City and the Company. The City further agrees that it will enter into a lease agreement with the Company and into an indenture of trust with a bank or trust company qualified to exercise trust powers where necessary, for the purpose of providing rental payments sufficient, together with other amounts available from the Company or directly or indirectly from the proceeds of the Bonds, to pay the principal of and premium, if any, and interest on the Bonds as they become due, together with the charges of any trustee and/or any paying agent for the Bonds, and pledging and/or otherwise securing the payment of such rental payments for the benefit of the owner(s) of the Bonds. The lease agreement, the indenture, other related documents and the Bonds shall contain such terms and conditions as are agreed upon by the City and the Company. The City will cooperate in consummating the transactions so contemplated and in attempting to realize the desire of the parties hereto that the interest on all Bonds be excluded from gross income for purposes of Federal income taxation. 5. Bonds to be Special Obligations. The City shall have no financial responsibility with respect to the Project, the Bonds or the costs associated with either, and the Bonds shall be special obligations of the City and shall never constitute a general obligation, indebtedness or pledge of the credit of the City within the meaning of any constitutional or statutory provision, and the Bonds shall never be paid in whole or in part out of any funds raised or to MndResol.001 052698 -3-