HomeMy WebLinkAboutResolution - 82-202 - MIDB's for Lucille and Haakon Nyhammer - $350,000 - 08/17/1982 RESOLUTION NO. 82-202
Member Dean Edstrom introduced the
following resolution and moved its adoption:
RESOLUTION RELATING TO A $ 350 , 000
COMMERCIAL DEVELOPMENT REVENUE BOND
( HAAKON J . AND LUCILLE C . NYHAMMER
PROJECT ) ; AUTHORIZING THE ISSUANCE
THEREOF PURSUANT TO MINNESOTA STATUTES ,
CHAPTER 474
BE IT RESOLVED by the City Council of the City of
Eden Prairie, Minnesota, as follows :
Section 1 . Definitions .
1 . 01. In this Resolution the following terms
have the following respective meanings unless the context
hereof or use herein clearly requires otherwise:
Act : the Minnesota Municipal Industrial
Development Act, Minnesota Statutes , Chapter 474 , as
amended;
Assignment : the Assignment of Rents and Leases
to be given by the Borrowers to the Lender ;
Bond: the $350 , 000 Commercial Development
Revenue Bond (Haakon J. and Lucille C . Nyhammer
Project) to be issued by the City pursuant to this
Resolution;
Borrowers : Haakon J . and Lucille C . Nyhammer ,
individuals residing in the State of Minnesota, and
their heirs , legal representatives and assigns;
City: the City of Eden Prairie, Minnesota, its
successors and assigns;
Disbursing Agreement: the Escrow and Disbursing
Agreement to be entered into among the City , the
Lender , Title and the Borrowers;
Holder: the Lender or any person to whom the
Bond has been assigned pursuant to Section 5 .04 of
this Resolution;
Improvements: the retail grocery store and
related facilities and improvements to be acquired and
constructed on the Land;
Land: the real estate located in the County of
Hennepin, State of Minnesota, and legally described in
Exhibit A to the Mortgage;
Lender : Suburban National Bank , Eden Prairie ,
Minnesota , a national banking association , its
successors and assigns;
Loan Agreement: the Loan Agreement to be entered
into between the City and the Borrowers;
Mortgage: the Mortgage and Security Agreement to
be entered into between the Borrowers , as mortgagors ,
and the Lender , as mortgagee;
Pledge Agreement: the Pledge Agreement to be
given by the City to the Lender ;
Project: the Improvements to be acquired and
cons'%'---ructed by the Borrowers in accordance with the
terms of the Loan Agreement and Disbursing Agreement;
Project Costs: those costs defined as Project
Costs in Section 1 .01 of the Loan Agreement;
Resolution: this resolution of the City; and
Title: Title Insurance Company of Minnesota, its
successors and assigns .
Section 2e Findings. It is hereby found and
declared that:
(a) based upon representations made to the City
by the Borrowers as to the nature of the Project , the
real property and improvements described in the Loan
Agreement and the Mortgage comprising the Project
constitute a project authorized by the Act;
( b) the purpose of the Project is, and the
effect thereof will be, to promote the public welfare
by the attraction, encouragement and development of
economically sound industry and commerce so as to
prevent the emergence of or to rehabilitate, so far as
possible , blighted and marginal lands and areas of
chronic unemployment; the retention of industry to use
the available resources of the community in order to
retain the benefit of its existing investment in
educational and public service facilities; halting the
movement of talented, educated personnel of mature age
i
l -2-
to other areas and thus preserving the economic and
human resources needed as a base for providing
governmental services and facilities; and more
intensive development of land available in the
community to provide an adequate and better balanced
tax base to finance the increase in the amount and
cost of governmental services;
(c ) the Project when completed will add to the
tax base of the City, and will accordingly be of
direct benefit to the taxpayers of the City as well as
those of the County of Hennepin and the school
district in which the City is located;
(d ) the Project has been approved by the
Commissioner of Energy, Planning and Development of
the State of Minnesota;
(e) the financing of the acquisition and
construction of the Project, the issuance and sale of
the Bond, the execution and delivery of the Loan
Agreement, the Disbursing Agreement and the Pledge
Agreement, and the performance of all covenants and
agreements of the City contained in the Bond , the Loan
Agreement , the Disbursing Agreement and the Pledge
Agreement and of all other acts and things required
under the Constitution and laws of the State of
Minnesota to make the Bond, the Loan Agreement, the
Disbursing Agreement and the Pledge Agreement valid
and binding obligations of the City in accordance with
their terms , are authorized by the Act ;
(f ) it is desirable that the Bond in the amount
of $350 ,00 0 be issued by the City upon the terms set
forth herein, and that the City pledge its interest in
the Loan Agreement and grant a security interest
therein to the Lender as security for the payment of
the principal of , premium, taxes and late charges , if
any, and interest on the Bond; and the City has not
heretofore pledged, assigned or otherwise encumbered
its interest in the Loan Agreement;
(g ) the loan payments contained in the Loan
Agreement are fixed, and required to be revised from
time to time as necessary, so as to produce income and
revenue sufficient to provide for prompt payment of
principal of , premium, taxes and late charges , if any,
and interest on the Bond when due, and the Loan
Agreement also provides that the Borrowers are
required to pay all expenses of the operation and
-3-
maintenance of the Project, including, but without
limitation , adequate insurance thereon and all taxes
and special assessments levied upon or with respect to
the Land and the Project and payable during the term
of the Loan Agreement ;
(h ) under the provisions of Minnesota Statutes ,
Section 474 . 10 , the Bond is not to be payable from nor
charged upon any funds of the City other than the
revenue pledged to the payment thereof; the City is
not subject to any liability thereon; no Holder of the
Bond shall ever have the right to compel any exercise
of the taxing power of the City to pay the Bond or the
interest thereon, nor to enforce payment thereof
against any property of the City other than those
rights and interests of the City under the Loan
Agreement which have been pledged to the Lender by the
Pledge Agreement; the Bond shall not constitute a
charge, lien or encumbrance, legal or equitable , upon
any property of the City other than those rights and
interests of the City under the Loan Agreement which
have been pledged to the Lender by the Pledge
Agreement; and the Bond shall recite that the Bond,
including interest thereon, is payable solely from the
revenue pledged to the payment thereof and shall not
constitute a debt of the City within the meaning of
t, any constitutional or statutory limitation;
( i ) the execution and delivery of the Loan
Agreement , the Disbursing Agreement , the Pledge
Agreement and the Bond will not conflict with , or
constitute on the part of the City a breach of or a
default under, any existing agreement, indenture,
mortgage , lease or other instrument to which the City
is subject or is a party or by which it is bound ,
provided that this finding is made solely for the
purpose of estopping the City from denying the
validity of the Loan Agreement , the Disbursing
Agreement, the Pledge Agreement or the Bond by reason
of the existence of any facts contrary to this finding;
(j ) no litigation is pending or, to the best
knowledge of the members of this Council , threatened
against the City questioning the organization or
boundaries of the City or the right of any officer of
the City to hold his or her office, or in any manner
questioning the right and power of the City to execute
and deliver the Bond, or otherwise questioning the
validity of the Bond or the execution, delivery or
validity of the Loan Agreement, the Disbursing
J
-4-
Agreement or the Pledge Agreement, or questioning the
appropriation of revenues to payment of the Bond or
the right of the City to loan the proceeds of the Bond
to the Borrowers;
( ki all acts and things required under the
Constitution and the laws of the State of Minnesota to
make the Loan Agreement , the Disbursing Agreement, the
Pledge Agreement and the Bond the valid and binding
obligations of the City in accordance with their terms
will have been done upon adoption of this Resolution
and execution of the Loan Agreement , the Disbursing
Agreement, the Pledge Agreement and the Bond, provided
that this finding is made solely for the purpose of
estopping the City from denying the validity of the
Loan Agreement , the Disbursing Agreement , the Pledge
Agreement or the Bond by reason of the existence of
any facts contrary to this finding ; and
( 1) the City is duly organized and existing
under the Constitution and the laws of the State of
Minnesota and is authorized to issue the Bond in
accordance with the Act .
Section 3 . Authorization and Sale .
3 .01. Authorization. The City is authorized by
the Act to issue revenue bonds and loan the proceeds
thereof to business enterprises to finance the acquisition
of "projects", as defined in the Act , and to make all
contracts , execute all instruments and do a11, things
necessary or convenient in the exercise of such authority.
3 .02. Preliminary City Approval . By preliminary
resolution duly adopted by the Council on October 31 ,
1981 , after a public hearing held on that date, this
Council approved the sale of a revenue obligation pursuant
to the Act and the loan of the proceeds to the Borrowers
for the acquisition and construction of the Project
suitable and designed for use as a retail grocery store
and authorized the preparation of such documents as may be
appropriate to the Project .
3 .03. Approval of Documents. Pursuant to the
foregoing, there have been prepared and presented to the
Council copies of the following documents , all of which
-5-
I
are now, or shall be , placed on file in the office of the
City Clerk :
(a ) Assignment;
(b) Disbursing Agreement ;
( c ) Loan Agreement ;
(d ) Mortgage; and
( e ) pledge Agreement .
The forms of the documents listed in (a ) through (e) above
are approved , with such variations , insertions and
additions as are deemed appropriate by the parties and
approved by the City Attorney.
Section 4 . Authorizations. Upon the completion
of the Loan Agreement , the Disbursing Agreement and the
Pledge Agreement approved in Section 3 . 03 hereof and the
execution thereof by the Borrowers and the Lender , as the
case may be, the Mayor and the City Manager shall execute
the same on behalf of the City and, together with the City
Clerk, shall execute the Bond in substantially the .form
approved in Section 5 . 01 hereof on behalf of the City, and
shall execute such other certifications , documents or
instruments as bond counsel or counsel for the Lender
shall require, subject to the approval of the City
Attorney, and all certifications , recitals and
representations therein shall constitute the
certifications , recitals and representations of the City.
Execution of any instrument or document by one or more
appropriate officers of the City shall constitute , and
shall be deemed the conclusive evidence of , the approval
and authorization by the City and the Council of the
instrument or document so executed-.
Section 5 . The Bond.
5 .01 . Form and Authorized Amount. The Bond
shall be issued substantially in the form presented to the
Council and set forth as Exhibit A to this Resolution with
such appropriate variations , omissions and insertions as
are permitted or required by this Resolution, in the total
principal amount of $350 ,000 . The terms of the Bond are
set forth therein, and such terms, including but not
limited to provisions as to interest rate, dates and
amount of payment of principal and interest and prepayment
privileges , are incorporated by reference herein.
l
-6-
5. 0 2. Execution. The Bond shall be executed on
behalf of the City by the signatures of the Mayor and the
City Manager and shall be sealed with its corporate seal
and attested by the City Clerk . In case any officer whose
signature shall appear on the Bond shall cease to be such
officer before the delivery thereof, such signature shall
nevertheless be valid anO sufficient for all purposes.
5.03. Mutilated , Lost and Destroyed Bond . In
case the Bond shall become mutilated or be destroyed or
lost, the City shall cause to be executed and delivered a
new Bond of like outstanding principal amount and tenor in
exchange and substitution for and upon cancellation of the
mutilated Bond , or in lieu of and in substitution for such
Bond destroyed or lost , upon the Holder ' s paying the
expenses and charges of the City in connection therewith ,
and , in case the Bond is destroyed or lost , its filing
with thie City evidence satisfactory to it of such loss or
destruction.
5. 04. Assignment. The Bond may be assigned by
the Holder , from time to time , by endorsement thereon or
by separate written instrument; provided that notice of
any such assignment shall be given in writing to the City
and the Borrowers. At the request of the Holder. , the Bond
f shall be registered on the books of the City, subject to
the conditions set forth in the form of the Bond attached
hereto as Exhibit A.
5. 05. Delivery and Use of Proceeds. Prior to
delivery of the Bond, the documents referred to in Section
3. 03 hereof shall be completed and executed in form and
substance as approved by the City Attorney and an
original , executed counterpart of each such document shall
be delivered to the Lender . The City shall thereupon
deliver to the Lender the Bond in the total principal
amount of $350 ,000, together with a copy , duly certified
by the City Clerk , of this Resolution and such closing
certificates as are required by bond counsel and are
approved by the City Attorney.
Upon delivery of the Bond and the above items to
the Lender, the Lender shall pay the purchase price of the
Bond of $350,000 to Title for deposit , on behalf of the
City, in the Escrow Fund created under the Disbursing
Agreement , to be thereafter disbursed to the Borrowers in
reimbursement of, or to their order for payment of,
Project Costs pursuant to the provisions of the Loan
Agreement and the Disbursing Agreement.
-7-
Section 6 . Limitations of the City ' s
Obligations. Notwithstanding anything contained in the
Bond, the Loan Agreement, the Disbursing Agreement or the
Pledge Agreement or any other documents referred to in
Section 3 .03 hereof , the Bond shall not constitute a debt
of the City within the meaning of any constitutional or
statutory limitation , and shall not be payable from nor
charged upon any funds other than the revenue pledged to
the payment thereof , and the City shall not be subject to
any liability thereon, and no Holder of the Bond shall
ever have the right to compel any exercise of the taxing
power of the City to pay the Bond or the interest thereon,
or to enforce payment thereof against any property of the
City other - than those rights and interests of the City
under the Loan Agreement which have been pledged to the
Lender by the Pledge Agreement, and the Bond shall not
constitute a charge, lien or encumbrance , - legal or
equitable, upon any property of the City other than those
rights and interests of the City under the Loan Agreement
which have been pledged to the Lender by the Pledge
Agreement . The agreement of the City to perform the
covenants and other provisions contained in this
Resolution or the Bond, the Loan Agreement , the Disbursing
Agreement or the Pledge Agreement and the other documents
listed in Section 3.03 hereof shall be subject at all
times to the availability of revenues furnished by the
Borrowers sufficient to pay all costs of such performance
or the enforcement thereof, and the City shall not be
subject to any personal or pecuniary liability thereon
other than as stated above.
Adopted: August 17, 1982.
�! r
� r
Attest :
/ `i Clerk iV ranager
l I/
-8-
The motion for the adoption of the foregoing
resolution was duly seconded by Member George Tangen ,
and, upon vote being taken thereon, the following voted in
favor thereof :
George Bentley, Dean Edstrom, Paul Redpath, George Tangen, and
Mayor Wolfgang H. Penzel .
and the following voted against the same:
none
whereupon said resolution was declared duly passed and
adopted and was signed by the Mayor which was attested by
the City Clerk.
-9-
EXHIBIT A
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENN EPIN
CITY OF EDEN PRAIRIE
Commercial Development Revenue Bond
(Haakon J. and Lucille C. Nyhammer Project )
No. R-1 $350 , 000
The City of Eden Prairie, Minnesota, a municipal
corporation of the State of Minnesota ( the City) , for
value received hereby promises to pay to the order of
Suburban National Bank, a national banking association, or
its assigns ( the Holder ) , at its principal office in Eden
Prairie , Minnesota, or such other place as the Holder may
designate in writing , solely from the source and in the
manner hereinafter provided , the principal sum of THREE
HUNDRED FIFTY THOUSAND DOLLARS ($350 , 000 ) , with interest
on the unpaid principal balance at the rate of thirteen
and one-half percent ( 13h% ) per annum, in any coin or
currency which at the time or times of payment is legal
tender for the payment of public and private debts in the
United States of America. The principal of and interest
on this Bond are payable in installments due as follows:
(a ) On or before September 1 , 1982 , and on or
before the first day of each calendar month thereafter to
and including the Amortization Date (as defined in the
Loan Agreement) , there shall be paid interest only
payments equal to the accrued interest on the unpaid
principal balance hereof.
(b) On or before the first day of the first full
calendar month following the Amortization Date, and on or
before the first day of each and every calendar month
thereafter to and including August 1 , 1987 , principal and
interest shall be payable in equal monthly installments in
an amount equal to Four Thousand Five Hundred Forty-four
Dollars and Twelve Cents ( $4 , 544 . 12 ) , with a final payment
of all unpaid principal and interest hereon on
September 1 , 1987 .
The rate of interest per annum payable under this
Bond and the amount of the monthly installment payments of
principal and interest provided for in the foregoing
paragraph are subject to adjustment as hereinafter
provided in this Bond. All payments of principal and
:�s
! interest pursuant to the foregoing paragraph shall be
applied first to interest due on the outstanding principal
balance and thereafter in reduction of said principal
balance. All interest hereon shall be computed on the
assumption that each year contains three hundred sixty
( 360 ) days and is composed of twelve ( 12 ) thirty-day
months.
If any payment of principal and/or interest on
this Bond is not paid when due, each and every such
delinquent payment , including the entire principal balance
and accrued interest in the event of an acceleration of
this Bond, shall bear interest to the extent permitted by
law at the rate of interest per annum then payable under
this Bond , from its due date until payment .
Adjustments to Interest Rate
If the Holder receives notice of a Determination
of Taxability (as defined in Section 4 . 08 of the Loan
Agreement ) , the rate of interest then payable under this
Bond shall automatically be increased, effective as of the
Date of Taxability (as defined in Section 4 .08 of the Loan
Agreement ) , to the rate per annum equal to two percent
( 2% ) in excess of the published prime rate of Northwestern
National Bank of Minneapolis as of the Date of Taxability
( the Taxable Rate ) , in which event the monthly installment
payments of principal and interest by the City required
hereunder in clause (b) of the first paragraph of this
Bond from and after the Date of Taxability shall be
recomputed at such interest rate , and the City shall
( 1 ) promptly pay to the Holder hereof and to any prior
Holder affected thereby , as their interests may appear ,
the aggregate difference between (a ) the amounts actually
paid hereunder between the Date of Taxability and the date
of such payment, and (b ) the amounts which would have been
due during such period if the increased interest rate had
been in effect, and (2) thereafter pay to the Holder
hereof monthly payments of principal and interest as so
recomputed. The provisions of this paragraph shall
survive the payment of this Bond . The Holder shall notify
in writing the City and the Borrowers hereinafter referred
to; as soon as practicable after the receipt thereof, of
its receipt of a Determination of Taxability and of the
consequent increase in interest rate and monthly
installment payments required hereunder.
-2-
{ City ' s Right to Prepay Bond
The City may, upon thirty ( 30 ) days ' prior
written notice to the Holder , prepay the unpaid principal
balance hereof , in whole or in part , on any installment
payment date, without premium. The Holder shall apply any
such prepayment against the unpaid principal amounts due
hereunder , if the entire unpaid principal balance and
interest thereon is not paid in full , and no partial
prepayment shall postpone, defer or reduce the amount of
the monthly installment payments otherwise due hereunder .
In the event the Holder applies the net proceeds
of insurance or condemnation awards upon the occurrence of
certain events of damage, destruction or condemnation of
the property subject to the Mortgage and Security
Agreement hereinafter referred to to the payment of this
Bond, as provided in Sections 5-1 and 5-2 of said
Mortgage, such application shall be made without any
prepayment penalty or premium.
Purpose and Security
This Bond is issued by the City for the purpose
of providing funds to be loaned to Haakon J. and
Lucille C . Nyhammer , individuals residing in the State of
Minnesota ( the Borrowers ) , pursuant to the terms of a Loan
Agreement , of even date herewith ( the Loan Agreement ) , to
be used to pay the cost of a project, within the meaning
of Minnesota Statutes , Section 474 . 02 , Subdivision la,
consisting of the acquisition and construction of a retail
grocery store and related facilities and improvements on
certain land located in the City ( the Project ) .
This Bond is secured by a Pledge Agreement , of
even date herewith, by the City to Suburban National Bank ,
Eden Prairie, Minnesota, a national banking association
( together with its successors and assigns , the Lender ) , by
a Mortgage and Security Agreement, of even date herewith
( the Mortgage) , between the Borrowers, as mortgagors, and
the Lender , as mortgagee, and by an Assignment of Rents
and Leases , of even date herewith ( the Assignment ) , from
the Borrowers to the Lender . The disbursement of the
proceeds of this Bond is subject to the terms and
conditions of the Loan Agreement and the Escrow and
Disbursing Agreement, of even date herewith ( the
Disbursing Agreement) , among the City, the Borrowers ,
Title Insurance Company of Minnesota and the Lender .
I /
-3-
This Bond is issued pursuant to and in full
compliance with the Constitution and laws of the State of
Minnesota, including Minnesota Statutes , Chapter 474 , and
pursuant to a resolution duly adopted by the City Council
on August 17 , 1982 ( the Resolution ) , and, together with
interest hereon and any premiums , taxes , penalties , late
charges or other amounts payable hereunder , however
designated , are special obligations of the City payable
solely from payments to be received by the City pursuant
to the Loan Agreement and from disposition of the property
which secures payment of this Bond. This Bond, the
interest hereon and any premiums , taxes , penalties , late
charges or other amounts payable hereunder , however
designated , shall never constitute a debt of the City
within the meaning of any constitutional provision or
statutory limitation and shall never constitute or give
rise to a charge against its general credit or taxing
powers , and are not payable from nor a charge upon any
funds of the City other than the revenues pledged to the
payment thereof. This Bond, the interest hereon and any
premiums, taxes , penalties , late charges or other amounts
payable hereunder, however designated, do not constitute a
charge, lien or encumbrance , legal or equitable, upon any
property of the City, except the revenues to be received
by the City under the Loan Agreement, and the agreement of
the City to perform or cause the performance of the
covenants and other provisions herein referred to shall be
limited at all times to the availability of revenues from
the Loan Agreement , the Assignment and the Mortgage,
sufficient to pay all costs of such performance or the
enforcement thereof. The provisions of this paragraph
shall, for all purposes of this Bond , be controlling and
be given full force and effect, anything else to the
contrary in this Bond notwithstanding.
All of the agreements , conditions , covenants ,
provisions and stipulations contained in the Mortgage, the
Resolution, the Loan Agreement, the Disbursing Agreement
and the Assignment are hereby made a part of this Bond to
the same extent and with the same force and effect as if
they were fully set forth herein.
It is agreed that time is of the essence of this
Bond. If a default occurs in any payment due under this
Bond and is not cured within ten ( 10 ) days after the date
such payment is due, or if any Event of Default shall
occur under the Mortgage or the Loan Agreement, then the
Holder may at its right and option declare immediately due
and payable without notice the principal balance of this
Bond and interest accrued thereon, together with any
-4-
reasonable attorneys ' fees incurred by the Holder in
collecting or enforcing payment thereof , whether suit be
brought or not, and all other sums due hereunder or under
the Mortgage, the Loan Agreement , the Disbursing Agreement
or the Assignment, anything to the contrary therein
notwithstanding , and payment thereof may be enforced and
recovered in whole or in part , at any time, by one or more
of the remedies provided in this Bond , the Mortgage , the
Loan Agreement, the Disbursing Agreement or the
Assignment . The Holder may extend the time of payment of
interest and/or principal of this Bond, without notice to
or consent of any party liable hereon and without
releasing any such party, provided that in no event shall
the maturity date of this Bond be extended beyond
August 1 , 2012.
The remedies of the Holder , as provided herein
and in the Mortgage, the Loan Agreement, the Disbursing
Agreement and the Assignment , shall be cumulative and
concurrent; may be pursued singly, successively or
together and at the sole discretion of the Holdar ; and may
be exercised as often as occasion therefor shall occur .
The failure to exercise any such right or remedy shall in
no event be construed as a waiver or release thereof.
The Disbursing Agreement shall no longer
constitute a part of this Bond from and after the
Completion Date ( as defined in the Loan Agreement ) , and no
defenses , offsets or counterclaims available to the
Borrowers arising out of the Disbursing Agreement_ shall be
valid or effective as against the indebtedness evidenced
by this Bond or against the Holder of this Bond, all of
said defenses , offsets and counterclaims being then waived
insofar as said indebtedness and said Molder are concerned.
The City, for itself , its successors and assigns ,
subject to limitation of the City 's liability, hereby
guarantees payment of this Bond and waives diligence,
demand, presentment , protest and notice of dishonor and
suretyship defenses generally, and agrees that without any
notice , the Holder hereof and any present or future owner
or owners of any property and interests covered by the
Mortgage or any other document given to secure this Bond,
or executed in connection with this Bond, may from time to
time extend , renew, or otherwise modify the date or dates
or amount or amounts of payment above recited; or, the
Holder hereof may from time to time release any part or
parts of the property and interests subject to said
Mortgage or to any such other document from the same, with
or without consideration. In any such case, the City ,
r•
l
-5-
subject to limitation of the City ° s liability, shall
continue liable to pay the unpaid balance of the
indebtedness evidenced hereby as so extended , renewed or
modified and notwithstanding any such release.
Negotiation and Registration
As provided in the Resolution, this Bond may be
assigned by the Holder , from time to time , by an
endorsement hereon or by other writing; provided that
notice of such assignment shall be given in writing to the
City and the Borrowers.
Subject to the conditions set forth herein, the
City will , upon request of the Holder , register this Bond
upon its books . Upon such registration, this Bond shall
be transferable only by the Holder hereof in person or by
its attorney duly authorized in writing by registration
hereon and on the books of the City kept for that purpose
at the office of the City Clerk and upon surrender hereof
together with a written instrument of transfer
satisfactory to the City Clerk , duly executed by the
Holder or its duly authorized attorney. Upon such
transfer , the City Clerk will note the date of
registration and the name and address of the new Holder
upon the books of the City and in the registration blank
appearing below. The City may deem and treat the person
in whose name this Bond is last registered upon the books
of the City, with such registration also noted on this
Bond , as the absolute owner hereof , whether or not
overdue , for the purpose of receiving payment of or on
account of the principal hereof, interest hereon or any
other sums payable hereunder, and for all other purposes ,
and all such payments so made to the Holder or upon its
order shall be valid and effectual to satisfy and
discharge the liability on this Bond to the extent of the
sum or sums so paid, and the City shall not be affected by
any notice to the contrary.
Separability
If any term of this Bond , or the application
thereof to any person or circumstances, shall , to any
extent , be invalid or unenforceable, the remainder of this
Bond, or the application of such term to persons or
circumstances other than those as to which it is invalid
or unenforceable, shall not be affected thereby, and each
term of this Bond shall be valid and enforceable to the
fullest extent permitted by law.
-6-
{ Successors in Interest
This Bond applies to, inures to the benefit of ,
and is binding not only on the parties hereto, but on
their successors and assigns . The term "holder " shall
mean the holder and owner of this Bond , whether or not
named as Solder herein.
Modifications
This Bond may not be amended , modified or changed
nor shall any waiver of any provision hereof be effective,
except only by an instrument in writing and signed by the
party against whom enforcement of any waiver , amendment,
change, modification or discharge is sought.
It is intended that this Bond is made with
reference to and shall be construed as a Minnesota
contract and governed by the laws thereof.
IT IS HEREBY CERTIFIED AND RECITED that all
conditions , acts and things required to exist , happen and
be performed precedent to or in the issuance of this Bond
do exist , have happened and have been performed in regular
and due form, time and manner as required by law.
IN WITNESS WHEREOF, the City has caused this Bond
to be duly executed by its duly authorized officers and
its corporate seal to be affixed hereto , all as of this
day of August , 1982 .
CITY OF EDEN PRAIRIE,
MINNESOAf/
/-
17
B y / -4
(SEAL) Mayor
Attest: Co to 'g d :
City Clerk ty Manager
l
-7-