Resolution 4058 - Resolution of Intent - Refinance Bonds - Immanuel Lutheran Home407
RESOLUTION NO. 4-- - 058 -
A RESOLUTION APPROVING ISSUANCE BY THE CITY OF REFUNDING REVENUE
BONDS ON BEHALF OF IMMANUEL LUTHERAN CORPORATION OF KALISPELL,
MONTANA FOR SENIOR HOUSING PROJECT.
WHEREAS, the City of Kalispell (the "City") has issued its
First Mortgage Housing Revenue Bonds (Immanuel Lutheran Home
Project), Series 1987, in the original aggregate principal amount
of $6,545,000 (the "Original Bonds") to provide financing for a
senior housing facility (the "Project") located at 40 Claremont
Street, Kalispell, Montana 59901 in the City; and
WHEREAS, Immanuel Lutheran Corporation of Kalispell,
Montana, a Montana nonprofit corporation, formerly known as
Immanuel Lutheran Home (the Corporation"), has proposed that the
City issue its refunding revenue bonds in a principal amount of
not to exceed $7,000,000 (the "Refunding Bonds") on October 1,
1992 (the "Call Date"), and thereby providing refinancing with
respect to the Project; and
WHEREAS, the Refunding Bonds are not to constitute a general
obligation of the City, but are to be repaid solely from loan
repayments to be made by the Corporation and will be further
secured by such security, including one or more letters of
credit, as may be determined to be necessary or desirable by the
Corporation, or by Norwest Investment Services, Inc. as
Underwriter and Investment Banker with respect to the Refunding
Bonds ("NISI");
NOW THEREFORE, BE IT RESOLVED, AS FOLLOWS:
1. The issuance of the Refunding Bonds by the City is
hereby approved, subject only to the adoption by the City of a
definitive Bond Resolution approving the final details of the
Refunding Bonds and the forms of the documents to be entered into
in connection therewith. The Corporation, Faegre & Benson, as
bond counsel and as counsel to the Underwriter, NISI, and
officers of the City are hereby authorized to initiate the
preparation of a proposed loan agreement, pursuant to which the
Corporation shall be obligated to undertake and complete the
refunding on behalf of the City and to make loan repayments
sufficient to provide for repayment in full of the Refunding
Bonds, together with proposed forms of other appropriate
documents, including a Trust Indenture and an Official Statement
for the Bonds, in order that the refunding may be carried forward
expeditiously and the Original Bonds may be redeemed in whole on
the Call Date.
2. The Refunding Bonds are hereby designated as
"qualified tax-exempt obligations" within the meaning of Section
265(b) (3) of the Internal Revenue Code of 1986, as amended.
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The Refunding Bonds are to be issued on behalf ,of an organization
described in Section 501(c) (3) of the Code and are to be issued
as "qualified 501(c) (3) bonds" under Section 145 of the Code.
The City, together with all subordinate entities thereof, does
not reasonably expect to issue tax-exempt obligations, including
the Refunding Bonds (other than private activity bonds not
constituting "qualified 501(c) (3) bonds"), which, when added
together with all such obligations heretofore issued by the City,
or such subordinate entities, in calendar year 1992, will be in
an aggregate amount exceeding $10,000,000 in the calendar year
1992.
PASSED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, THIS 6TH DAY
OF JULY, 1992.
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ATTEST:
FINANCE DIRECTOR
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