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RESOLUTION NO. 03-132 <br /> RESOLUTION PROVIDING FOR THE ACQUISITION OF EQUIPMENT AND EXECUTION OF A <br /> MUNICIPAL LEASE PURCHASE AGREEMENT <br /> BE IT RESOLVED, by the City Council (the "Governing Body") of the City of Pequot Lakes, Crow Wing <br /> County, Minnesota ( the"Municipality") as follows: <br /> Section 1. Purpose and Authorization. <br /> 1.1 The Municipality is authorized by Minnesota Statutes to acquire property by lease or purchase. <br /> 1.2 The Governing Body has determined that the acquisition by the Municipality of a 2003 Peterbilt <br /> Fire Truck VIN # 2NPNHZ8X23N804367 with triple combination pumper (the "Equipment") with <br /> a cost to be financed of$151,300 is necessary and expedient for the Municipality. <br /> 1.3 The Municipality has solicited proposals for financing the acquisition of the Equipment through a <br /> municipal lease purchase agreement, and an offer has been received from American <br /> National Bank of Minnesota of Pequot Lakes, Minnesota (the "Purchaser") to provide <br /> financing for the acquisition of the Equipment at the annual interest rate, with installments and <br /> for the term shown in the proposed form of Municipal Lease Purchase Agreement (the <br /> "Agreement") between the Governing Body and the Purchaser presented to the Governing <br /> Body. The Governing Body finds this offer reasonable and proper and accepts the offer. The <br /> Agreement is approved. The Mayor and the City Clerk are authorized and directed to execute <br /> the Agreement and other necessary closing certificates on the part of the Municipality. <br /> Section 2. Federal Tax Matters <br /> 2.1 The Municipality represents that all proceeds from the Agreement will be expended within six <br /> months of the date of the Agreement. <br /> 2.2 The Municipality makes the following representations: <br /> (a) The Agreement is not a "private activity bond" as defined in Section 141 of the Internal <br /> Revenue Code of 1986, as amended (the"Code"); <br /> (b) the Municipality hereby designates the Agreement as a "qualified tax-exempt obligation" <br /> for the purposes of Section 265(b)(3) of the Code; <br /> (c) the reasonably anticipated amount of tax-exempt obligations (other than obligations <br /> described in clause (ii) of Section 265(b)(3)(c) of the Code) which will be issued by the <br /> Municipality (and all entities whose obligation will be aggregated with those of the <br /> Municipality) during this calendar year will not exceed $10,000,000; and <br /> (d) ` not more than $10,000,000 of obligations issued by the Municipality during this calendar <br /> year have been designated for purposes of Section 265(b)(3) of the Code. <br /> Adopted: December 2, 2003 /' /7/ <br /> By Or <br /> By Pequot Lakes Mayor <br /> Resolution <br /> Municipal 1/5/00 <br />