93-7976R24
RESOLUTION NO. 7976
CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING THE EXECUTION ~ OF A
SUPPLEMENTAL INDENTURE OF TRUST IN CONNECTION
WITH MULTIFAMILY HOUSING REVENUE BONDS, SERIES
1985 (MARKET PLAZA HOUSING PROJECT) .
WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota
Statutes, Chapter 462C, the City of Richfield, Minnesota (the "City") has issued its
$8, 250, 000 Multifamily Housing Revenue Bonds, Series 1985 (Market Plaza Housing
Project) (the "Series 1985 Bonds") for the purpose of financing the acquisition,
construction and equipping of a 166-unit multifamily residential rental facility (the
"Project") ; and
WHEREAS, the Series 1985 Bonds were issued under an Indenture of Trust,
dated as of September 1, 1985 (the "Original Indenture") , between the City and
First Trust Company, Inc., as trustee; and
WHEREAS, the Series 1985 Bonds are secured by a letter of credit (the "Letter
of Credit")issued by Midwest Federal Savings and Loan Association of Minneapolis;
and
WHEREAS, First Trust National Association (the "Trustee") is the successor
of First Trust Company, Inc . and Midwest Savings. Association ("Midwest") is the
successor of Midwest Federal Savings and Loan Association, and Resolution Trust
Corporation ("RTC") is the receiver for Midwest; and
WHEREAS, RTC is or will become the owner of the Series 1985 Bonds in
accordance with the terms of the Series 1985 Bonds as a result of certain defaults in
connection with the reimbursement agreement relating to the Letter of Credit; and
WHEREAS, RTC has agreed to sell the Series 1985 Bonds after cancellation of
the Letter of Credit, and upon modification of certain terms of the Series 1985
Bonds; and
WHEREAS, the Series 1985 Bonds will remain payable solely from the revenue
pledged therefor and the Series 1985 Bonds shall not. constitute a debt of the City
within the meaning of any constitutional or statutory limitation nor give rise to a
pecuniary liability of the City or a charge against its general credit or assets and
shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any
property of the City; and
WHEREAS, there has been submitted to the City a form of a Supplement No.
1 to Indenture of Trust to be made and entered into between the City and the
Trustee (the "Supplemental Indenture") ;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHFIELD, MINNESOTA:
1. The Supplemental Indenture in substantially the form submitted to tY~e
City at this meeting, is hereby approved. The Supplemental Indenture is hereby
authorized and directed to be executed and delivered in the name and on behalf of
the City by its Mayor and City Mana er; provided that delivery of the Supplemental
Indenture shall be conditioned upon receipt of the written consent of the holders of
the Series 1985 Bonds . Copies of all the documents necessary for the consummation
of the transactions described herein and in the Supplemental Indenture shall be
delivered, filed and recorded as provided herein and in the Supplemental Indenture.
2. The form and terms of tie Supplemental Indenture may be varied prior
to execution and delivery by the parties thereto, provided that any such variance
shall not be, in the opinion of the ity's legal counsel and the Mayor, materially
adverse to the interests of the City. The execution and delivery of'the Supplemental
Indenture as provided above shall b conclusive evidence of the determination that
any such variance was not materiall adverse to the interests of the City.
3. The Mayor and City M Hager are further authorized to execute and
deliver new Series 1985 Bonds in a change for the outstanding Series 1985 Bonds
which new Series 1985 Bonds shall contain such terms as are authorized by the
Supplemental Indenture .
4. No covenant, stipulatic
contained in the Supplemental ~In
stipulation, obligation or agreement
or employee of the City in that person
of the City Council nor any officer
the Supplemental Indenture shall be
Supplemental Indenture or be subje
reason of the issuance thereof .
5. No provision, covenax
Indenture, the Series 1985 Bonds or
Bonds, and no obligation therein c
thereof, shall constitute or give ri
charge upon its general credit or
provisions, covenants and represen
not obligated itself to pay or remit
revenues derived from the Project
are to be applied to the payment of
in the Indenture .
6. This Resolution shall
Adopted this 8th day of Fe
Attest
~1.~'7~r~c,n
Thomas P. Ferber, City Clerk
i, obligation or agreement herein contained or
.enture shall be deemed to be a covenant,
~f any member of the City, or any officer, agent
's individual capacity, and neither the Members
r employee executing the Series 1985 Bonds or
fable personally on the Series 1985 Bonds or the
.t to any personal liability or accountability by
t or agreement contained in the Supplemental
in any other document related to the Series 1985
r herein imposed upon the City or the breach
.e to any pecuniary liability of the City or any
taxing powers. In making the agreements,
rations set forth in such documents, the City has
any funds or revenues, other than funds and
~r the proceeds of the Series 1985. Bonds which
:he Series 1985 Bonds, as provided therein and
effect immediately.
1993.
G~ -- -
.Martin J. Kirs Mayor
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