R95-132 AUTHORIZING THE EXECUTION AND DELIVERY OF A MEMORANDUM OF INTENT FOR THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS

Home Browse Search

AIJG - 1 0 - Q � THIJ 1 � : 28 E V ANS � FROEHL I CH P _ 0T . 3 . The Borrower intends durirzg the term of any such financing agreements tv cause the Project to be constructed, acquired and installed as above described and in compliance with the Act and the Code. C. It is further recognized and intended between the Municipality and the Borrower, as follows: 1. Such revenue bonds to be iesued by Che Municipality shall never constitute an indebtedness of the Municipality or a loan of the credit thezeof within the meaning o£ any constitutiona� or statutory provisioa, and such fact shall be piainly stated oa the face of each of such revenue bonds. No holder or owner of any o£ such bonds shall ever have the ziqht to compel. aay exercise of the taxing power of the Municipality ta pay the bonds or the i.nteres� thereon. The principal of, premium, if any, and interest on such revenus bonda ta be issued to finance costs of the Prvject may be aecured, including, fer example, by a pledge to a trustee or assignee actinq under an indenture of trust or assiqnment agreement for the benefit of the holders of the bonds, or by a pledge directly to Buch hol.ders, of the revenues and receipts derived by the Municfpality from the Project pursuant to the above mentioned financinq agreements and may be £urther secured by a mortgage on and security interest in the Project. 2. A primary �nducement to the Horrower in acquirzng, constructinq ar_d installinq the Project is the intent of the Municipality to finance the Proj�ct through the issuance of its revenue bonds pursuant to the proviaion� of the Act. 3. It is desirable that the Borrower rather thar. the Municipality arrange for the acquisition construction and instaliation of the Project and to arranqe the financinq tkiere£or. 4. This Agreement shall inure Lo the benefit of the Municipality and the Borrower and their respective successors and assiqns. 5. In the event that the revenue bonda are not issued, sold or delivered as contemplated herein, there shali be nv liability on the par� of the Municipaitty or the Bvrrower or any o£ theiz officera, directore, agents or empioyee�, as appropriate, for auch non-iasuance or non-delivery, except that the Borrower shall reimburse the Municipality for all expenses incurred by the Municipality in anticipation of such issuance, sale and delivery, including the Municipality' s reasonable attorney' s fees, in any event on or be£ore December 31, 1996, unless extended, and the Borrower shali not be entitled to any reimbursement of any advance deposits made or other costs gaid by the Borrower. -3-