HomeMy WebLinkAbout89-162 - ADMIN Resolution - City Council - 1989/10/16RESOLUTION 89-162
RESOLUTION APPROVING AMENDMENTS TO
LOAN AGREEMENT AND INDENTURE OF TRUST
RELATING TO REVENUE BONDS FOR
METHODIST HOSPITAL
AND AN AGREEMENT AS TO
INDEMNITY AND PAYMENT OF EXPENSES
WHEREAS, the City issued its $31,000,000 Hospital
Facilities Revenue Bonds and Refunding Revenue Bonds (Methodist
Hospital Project), Series 1985-A and Series 1985-B (the
"Bonds") and in connection therewith executed a Loan Agreement
dated October 1, 1985 (the "Loan Agreement") with Methodist
Hospital (the "Hospital") and an Indenture of Trust dated
October 1, 1985 (the "Indenture") with Norwest Bank
Minneapolis, National Association, now called Norwest Bank
Minnesota, National Association (the "Trustee"), and
WHEREAS, AMBAC Indemnity Corporation (the "Insurer")
has insured the prompt and full payment of the principal of and
interest on the Bonds by its Municipal Bond Insurance Policies
Nos. 1292 BE and 1298 BE, and
WHEREAS, the Indenture authorizes the City and the
Hospital to make changes in the provisions of the Loan
Agreement (other than the Hospital's obligation to make timely
loan repayments sufficient to pay the Bonds and interest
thereon when due) and the Indenture (other than payment terms
of the Bonds) with the approval of the Insurer, subject to
certain conditions relating to the good standing of the Insurer
and the validity of and absence of default under the municipal
bond insurance policies and to there being no adverse effect on
the tax exempt status of the Bonds, and
WHEREAS, the Hospital has requested and the Insurer
has consented to an amendment to the Loan Agreement as provided
in the form of the First Amendment to Loan Agreement (the
"First Amendment") presented to this meeting, and they have
represented that all conditions relating to the consent of the
Insurer and the execution of the First Amendment have been met,
and
WHEREAS, the Hospital has further requested and the
Insurer has consented to a further amendment to the Loan
Agreement in the form of the Second Amendment to Loan Agreement
(the "Second Amendment") and an amendment to the Indenture in
the form of the First Supplemental Indenture of Trust (the
"Supplemental Indenture") presented to this meeting, and they
have represented that all conditions relating to the consent of
the Insurer and the execution of the Second Amendment and the
Supplemental Indenture have been met, and
WHEREAS, the Hospital has requested the City to
authorize, approve and execute the First Amendment, the Second
Amendment, and the Supplemental Indenture in the forms
presented to this meeting, and the Hospital has represented
that all provisions of the Loan Agreement and Indenture
relating to the authorization, execution and delivery of such
First Amendment, Second Amendment, and Supplemental Indenture
will have been met, and
WHEREAS, the First Amendment, Second Amendment and
Supplemental Indenture do not adversely affect the City and are
desired by the Hospital to provide more flexibility,
BE IT RESOLVED by the City Council of the City of St.
Louis Park, Minnesota, as follows:
1. The form of First Amendment is hereby approved,
and the Mayor and City Manager are authorized to execute and
deliver the First Amendment substantially in the form presented
to this meeting and the City Clerk is authorized to affix and
attest the official seal thereto.
2. The forms of Second Amendment and Supplemental
Indenture are hereby approved, and the Mayor and City Manager
are also authorized to execute and deliver the Second Amendment
and the Supplemental Indenture in substantially the form
presented to this meeting, with such changes therein as the
officers executing the same shall approve, and the City Clerk
is authorized to affix and attest the official seal thereto.
3. The form of the Agreement as to Indemnity and
Payment of Expenses between the Hospital and City is hereby
approved and the Mayor and City Manager are also authorized to
execute and deliver such agreements substantially in the form
presented to this meeting, with such changes therein as the
officers executing the same shall approve, and the City Clerk
is authorized to affix and attest the official seal thereto.
Adopted this 16th day of October
Approv d:/1
W'
Mayo
, 1989.
Reviewed for Approved as to form
administration: and e►t�pn:
f, 20671
City Manager City A orney
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