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HomeMy WebLinkAbout27394 ° 4 /.:5qV SATISFACTION AND DISCHARGE SECTION 16. All rights and obligations of the Issuer and the Company under the Agreement, the Assignment, the Bond and this Resolution shall terminate and such instruments shall cease to be of further effect, and the Bank shall cancel the Bond, deliver it to the Issuer, and deliver a copy of the cancelled Bond to the Company, and the Bank shall execute and deliver all appropriate instruments evidencing and acknowledging the satisfaction of this Resolution , and shall assign and deliver to the Company any moneys in the Bond Fund required to be paid to the Company under Section 6 hereof (except moneys or investments held by the Bank for the payment of principal of, interest on or premium, if any, on the Bond) when: (a) all expenses of the Issuer and the Bank shall have been paid ; (b) the Issuer and the Company shall have performed all of their covenants and promises in the Agreement, the Assignment, the Bond, and in this Resolution; and (c) all principal installments and interest on the Bond have been paid or there shall have been deposited with the Bank either cash in an amount which shall be sufficient, or investments (but only to the extent that the full faith and credit of the United States of America are pledged to the timely payment thereof) the principal of and interest on which when due will provide moneys which, together with the moneys , if any, deposited with the Bank, shall be sufficient, to pay when due the principal or redemption price , if applicable, and interest due and to become due on the Bond and prior to the prepayment date or the maturity date thereof, as the case may be. Provided, however, none of the principal of the Bond may be advanced refunded if under apy circumstances the interest on the principal to be refunded would be subject to Federal income taxation. In determining the foregoing, the Bank may rely upon an opinion of a firm of municipal bond attorneys ac- ceptable to it to the effect that interest on the Bond will not be subject to Federal income taxation , notwithstanding the satisfaction and discharge of this Resolution. SEVERABILITY SECTION 17. If any section , paragraph, clause or provision of this Resolution shall be ruled by any court or competent jurisdiction to be invalid , the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions hereof. CAPTIONS SECTION 18. The captions or headings of this Resolution are for con- venience only and in no way define, limit or describe the scope or intent of any provision of this Resolution. iI 1)1' ,• )1' eaitl) (d) Representatives of the City have indicated the willingness of the City to proceed with and effect such financing as an inducement to the Company to locate the Project in the City and the City has advised the Company that, subject to due compli- ance with all requirements of law and the obtaining of all neces- sary consents and approvals and to the happening of all acts, conditions and things required to exist, happen and be performed precedent to and in connection with such financing in due time, form and manner as required by law, the City, by virtue of such statutory authority as may now exist or may hereafter be conferred, will issue and sell the Bonds in an aggregate principal amount not to exceed $3, 350, 000 to finance all or a portion of the cost of the Project; and (e) The City considers that the undertaking of the Project will promote industrial development of the City, provide employment opportunities for the inhabitants of the City, enhance the tax base of the City and overlapping taxing jurisdictions, increase the City' s commerce and add to the welfare and prosperity of the City and that of its inhabitants. 2 . Undertakings on the Part of the City. The City agrees as follows : (a) That it will authorize, or cause to be authorized, the issuance and sale of an issue of the Bonds, pursuant to the terms of the Act as then in force, in an aggregate principal amount not to exceed $3, 350, 000 to finance all or a portion of the cost of the Project, which cost, including the expenses related to the issuance of the Bonds, is presently estimated not to exceed $3, 350, 000 . (b) That it will cooperate with Company to sell the Bonds upon mutually agreeable terms, and it will adopt, or cause to be adopted, such proceedings and authorize the execution of such documents as may be necessary or advisable for the authoriza- tion, issuance and sale of the Bonds and the financing of the Project as aforesaid, and the entering into a Lease (the "Lease") with the Company with respect to the Project, all as shall be authorized by law and mutually satisfactory to the City and the Company. (c) That the aggregate rentals due and payable under the Lease shall be in such sums as shall be sufficient to pay the principal of and interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. (d) That it will take or cause to be taken such other acts and adopt such further proceedings as may be required to implement the aforesaid undertakings or as it may deem appropri- ate in pursuance thereof. -2-