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HRA RES 1983-13 - 00013969� t 1 RESOLUTION NO.HRA 13-83 A SUPPLEMENTAL GENEt2AL RESERVE RESOLUTION: A RESOLUTION ESTABLISHING THE IDB ACCOUNT AS A SPECIAL ACCOUNT IN THE GENERAL RESERVE BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Fridley, Anoka County, Minnesota {the "Authority"), as follows: Section 1. Purposes and Definitions. The Board has concurrently herewith adopted Resolution No. (the "Gen- eral Reserve Resolution") creating and establishing a gen- eral reserve of the Authority (the "General Reserve"), cre- ating and establishing a special account therein (the "Gen- eral Account"), and providing for the creation and estab- lishment of one or more additional special accounts (such General Account and each additional special account herein a "Special Account") from time to time in the General Reserve by resolution of the Board supplemental to the General Re- serve Resolution. The Authority desires, in accordance with the General Reserve Resolution, to create and establish another Special Account (the "IDB Account") in the General Resexve to provide security for certain obligations con- stituting Secured Bonds under the General Reserve Resolution to be issued pursuant to the Basic Resolution and Indenture of tne Authority, Resolution No. , adopted concurrently herewith (the "Basic Resolution"). Bonds secured by the IDB Account in accordance with the General Reserve Resolution, this Supplemental General Reserve ResoLution, the Basic Resolution and applicable bond resolutions supplemental to the Basic Resolution ("Supplemental Bond Resolution") are herein called "IDB Bonds." Section 2. IDB Account. mines and, so long as any IDB the provisions of the Basic covenants and agrees with the follows: The Authority hereby deter- Bonds are outstanding under Resolution ("Outstandina"), holders of any InB Bonds a� (a) Establishment. There is hereby established in the General Reserve a Special Account to be known as the "IDB Account." Without impairing the security provided by the IDB Account, the Autnority may create such subac- counts therein as may be deemed necessary or appropriate or as may be required by 1aw. � (b) Deposits. There shall be depos�ted in the IDB Account: (i) such tax increments (within the meaning of � Minnesota Statutes, Section 273.71 through 273.78, or any successor provisions) as the Authority shall deem necessary or appropriate for such purpose, (ii) amounts transferred theteto in accordance with the Basic Resolu- tion, and (iii) such other funds as the Authority may determine and be authorized to deposit therein. (c) Inv2stments. Moneys in the IDB Account may be legally invested and reinvested in such deposits or securities as the Authority may lawfully make or pur- chase, in the manner and sub7ect to the conditions as may from time to time be provided by law with respect thereto. The investment of funds sha11 be limited as to amount and yield of investment in such manner that no IDB Bonds sha11 be deemed "arbitrage bonds" under Sec- tion 103(c) of the Internal Revenue Code of 1954, as amended, and regulatioas thereunder (hereinaEter, the "Code"). (d) IDB Bond Security; Withdrawals. The IDB Account shall secure bonds issued pursuant to the Basic Resolution and applicable Supplemental Bond Resolutions in the manner and to the extent provided in such resolu- tions. Subject to Section 2(e) hereof, withdrawals from � the IDB Account of any funds on deposit therein and of any equivalents thereo� shall be made in accordance with the provisions of the Basic Resolution. {e) Withdrawal of Excess Funds. If the aggregate value of cash, Cash Equivalents, and investments (valued at market in the reasonable discretion of the Authority) held (or in the case of Cash Equivalents, available for deposit} in the IDB Account exceeds the Minimum Level, the Authority by resolution of its Board may withdraw from the IDB Account amounts in excess of the Minimum Level and appropriate and expend such amounts for any lawful purpose. The "Minimum Level" of the IDB Account shall mean the lesser of (1) $S,OOD,000 and (2) ten percent (10�) of the face amount of al1 IDB Bonds Out- standing from time to time; provided, however, that the Minimum Level shall not be less than the aggregate prin- cipal amount of any outstanding bonds issued by the Authority for the purpose of providing funding for the IDB Account. At any time "Cash Equivalents" shall mean any amounts drawable 6y the Authority under a letter of credit, insurance policy, or other instrument for de- posit in the IDB Account during a period of at least twelve (12) months thereafter whenever funds on deposit in the IDS Account have been exhausted pursuant to with- � drawals permitted or required under the Basic Resolu- tion; provided, however, such letter of credit shall have been issued by a bank or banks having minimum - 2 - � capital and surplus of at least $20,000,000. Amounts withdrawn from the IDB Account shall be deemed drawn from such subaccounts therein as tne Authority may de- termine. Nothing herein sha11 prevent the Authority from maintaining the IDB Account at a 1eve1 higher than the Minimum Leve1. Section 3. Amendments and Consents. (a) The Authority reserves the right to amend this Supplemental General Reserve Resolution: {i) at any time, in any respect, if no IDB Bonds are Outstanding or if the holders of all the IDB Bonds consent thereto, (ii) at any time if the holders of at least fifty-one percent (51�) of the principal amount of the IDB Bonds of each series Outstanding consent thereto in any re- spect except to reduce the Minimum Level requirement of Section 2(e) hereof, to create a lien or pledge of the IDB Account or any funds or investments therein ranking prior to any Outstanding IDB Bonds or to give a prefer- ence or priority to any IDB Bond or Bonds Outstanding with respect to the IDB Account or funds or investments therein, and (iii) at any time without the consent of any holders of IDB Bonds, to cure any ambiguity or for- ` mal defect in this Supplemental General Reserve Resolu- � tion or amendment hereof, to provide for a different allocaticn of the powers granted herezn to the Authority and any successor to the functions thereof, to prevent IDB Bonds from becoming arbittage bonds within the mean- ing of Section 103(c) of the Code or to grant any addi- tional rights, remedies, powers, authority or security to the holders of the IDB Bonds or any trustee or trust- ees fot the benefit of the holders of the IDB Bonds. (b) Consents of holders of Outstanding IDB Bonds may be evidenced by a consent or consents in writing of the holder or holders or adopted at a meeting of bond- holders in the same manner as may be provided in the Basic Resolution or the Supplemental Bond Resolution for the IDB Bonds of such series for execution of instru- ments by bondholders or the holding of bondholders' meetings or, if not so provided, then in such manner as shall be deemed appropriate by the Authority, whose determination of the validity and suffic�ency of any such consents shall be binding as provided in Section 2(e) of the General Reserve Resolution. Holders of IDB Bonds issued during the period �n which approval of an amendment to this Supplemental General Reserve Resolu- tion is being sought shall be deemed to have consented � thereto. - 3 - � Section 4. Limited Recourse. Notwithstanding any other provision of this Supplemental General Reserve Resolution, the obligations of the Authority in connection with this Supplemental General Rzserve Resolution are limited to amounts received by the Authority for deposit in the IDB Account, and the Authority shall not have any obligation to levy taxes foc or make any advance or payment or incur any expense or liability from its general £unds in performing any of the conditions, covenants or requirements of the IDB Bonds, this Supple�ental General Reserve Resolution or from any fur.ds other than moneys required to be held in the IDB Account. � � PASSED AND ADOPTE� BY THE HOUSIPJG AN� REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 215T DAY OF JULY, 1983. % � j '1 ,/�' I� � � � �'�� � � � �L`���t � � l/ �' � � 1� '�1V✓ZbG� LAIJRENCE R. COMP1ERS, CHAIRMAN ATTEST - 4 -