RES102003A - Laserfiche WebLink

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Simultaneously with the delivery of the Certificates, pursuant to a Base Lease dated as of November 1, 2003 (the "Base Lease"), the City will lease to the Trustee all its interest in the Leased Property. The Trustee, as lessor under the Lease, will lease the Leased Property back to the City for an initial term ending June 30, 2004 with fourteen (14) successive one-year renewal options (the "Renewal Terms"), and a final Renewal Term beginning July 1, 2018 and ending February 2, 2019. Each Renewal Term is subject to annual appropriation by the City Council. The City intends to satisfy its obligation to make Base Rentals under the Lease from a one-quarter cent local park sales tax collected within the City and from other available funds of the City. Purchasers of the Certificates should be aware, however, that such sales tax and other funds are not pledged to the payment of the Certificates. Pursuant to the Indenture, a portion of each Base Rental will be used to pay interest distributable with respect to the Certificates, and a portion of each Base Rental will be used to pay principal distributable with respect to the Certificates. See the caption "PLAN OF FINANCING" herein. Limited Obligations Under the Lease, the City has agreed to pay rental payments (the "Base Rentals"), consisting of a principal component (the "Principal Component") and an interest component (the "Interest Component"), but only if and to the extent that the City Council of the City annually appropriates sufficient money to pay the Base Rentals confing due during each succeeding Renewal Term. The Certificates represent undivided, proportionate interests in the Base Rentals. Neither the Certificates, the Lease nor any payments required under the Lease will constitute a mandatory payment obligation of the City in any year beyond the year during which the City is a lessee under the Lease, or constitute or give rise to a general obligation or other indebtedness of the City. The City is not legally obligated to budget or appropriate money for any fiscal year beyond the current fiscal year or any subsequent fiscal year in which the Lease is in effect, and there can be no assurance that the City will appropriate funds to make Base Rentals or renew the Lease after any Renewal Temp. The City may terminate its obligations under the Lease on an annual basis. The City will have the option to purchase the Trustee's interest in the Leased Property at the times and upon the conditions described under "SUMMARY OF THE LEASE -- Option to Purchase the Trustee's Interest in the Leased Property" inAppendix C hereto. Neither the Certificates nor the Lease will constitute a debt or liability of the City or of the State of Missouri or any political subdivision thereof, nor will they constitute an indebtedness within the meaning of any constitutional, statutory or charter debt limitation or restriction. The execution and delivery of the Lease will not obligate the City to levy any form of taxation for the payments required thereunder or to make any appropriation for such payments in any fiscal year subsequent to a fiscal year in which the Lease is in effect. Certificate Insurance Concurrently with the issuance of the Certificates, [**Insurer**] (the "Certificate Insurer") will issue its Municipal Bond Insurance Policy for the Certificates (the "Certificate Insurance Policy"). The Certificate Insurance Policy guarantees the scheduled payment of principal of and interest on the Certificates when due as set forth in the fom~ of the Certificate Insurance Policy included as Appendix E to this Official Statement. See the sections herein captioned "CERTIFICATE INSURANCE" and "SECURITY FOR THE CERTIFICATES - The Certificate Insurance Policy." -2-