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

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AUG - 1 0 - 9 � THU 1 � : ��.. 5 E4' ANS � FROEHL I GH P - 06 A. The Municipality represents and intends: 1 . Pursuant to the provisions of the Act, the Municipality ie authorized to issue its industrial development revenue bonds in order to provide funds to acquire and install the Project and to pay nece�sary expen9es incidental thereto. 2. The Municipality intends, eubject in all respects to the provisions and requirements of the Act and a sale of the bonds on terms satisfactory to and as arranqed by the Borrower, to use its best efforts to authorize, issue, sell and t3eliver it� revenue bonds, to be issued ia one or more seriee in an agqregate princigal amount not exceeding $3,OOQ,OQO, the exact amount to be fixed by ordinance ar resolution of the Municipality at a later date and agreed to by the Borrower, but not to exceed the cost of th� Project, including expenses incidenta2 thereto, as estimated at the time of iaauance of such revenue bonc3s, and agply the procesda therefrom to the payment of qualifyinq costs vf the Project, provided that prior to the issuance snd delivery of such ravQnua bonds there shall have been entered into by aiid between the Borrower and the Municipality appropriate financing agreements upon terms which will comply with th� provisions of the Act and which will provide for the payment by the Borrower of amounts which will be sufficient in the agqregate to enable the Municipaiity to pay when due the principal of, premium, if any, and interest on �uch revenue bonds. 3 . The financinq of the Project by t2:e Munfcfpality ie for a proper publzc corporate puzpose and the financing thereof for the Borrower is necessary to implemez�t the public purposos enumerated in the Act. B. The Borrowez representa and intenda: 1. The Project will create or retain empl.oyment in the Municipality. In the event the revenue bonds are "tax-eaempt", the Project will at all times be a ^manufacturinq facility" und�r Sectian 144(a) (12) of the In�ernal Revenue Code of 1986, aa amended (the "Code") . 2. If the terms of , the proposed revenue bonds, including the rate of interest thereon, of the Municipalit-y are eatisfactory as ao arranged by t2:e Borrower, the Borrower will enter into financing agreements w3th the Municipality which wili comply with the provisions of the Act and which will provide for payments by the Borrower which wi12 be sufficient in the aggregate to enabl.e the Municipality to pay the principal of, premium, if any, and interest on euch revenue bonds. -2-