HomeMy WebLinkAboutNo. 1459 authorizing such actions as may be necessary for substitution/replacement of the credit facility for the SBRA variable rate demand lease rental revenue bonds of 1994 (CFHOF project)RESOLUTION NO. 1459
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION AUTHORIZING SUCH ACTIONS AS MAY BE
NECESSARY FOR THE SUBSTITUTION AND REPLACEMENT OF THE
CREDIT FACILITY FOR THE SOUTH BEND REDEVELOPMENT
AUTHORITY VARIABLE RATE DEMAND LEASE RENTAL REVENUE
BONDS OF 1994 (COLLEGE FOOTBALL HALL OF FAME PROJECT)
WHEREAS, the South Bend Redevelopment Authority (the "Authority ") has been
created pursuant to I.C. 36 -7 -14.5 as a separate body, corporate and politic, and as an
instrumentality of the City of South Bend to finance local public improvements for lease to the
South Bend Redevelopment Commission (the "Commission "); and
WHEREAS, the Authority has previously issued its bonds pursuant to I.C.
36 -7- 14.5 -19 said bonds being known as the "South Bend Redevelopment Authority Variable Rate
Demand Lease Rental Revenue Bonds of 1994 (College Football Hall of Fame Project)" (the
'Bonds "), the proceeds of which were used to finance the costs of: (i) constructing the College
Football Hall of Fame and (ii) issuing of the Bonds (the "Project "); and
WHEREAS, the Bonds were issued pursuant to and secured by a Trust Agreement
entered into by and between the Authority and Norwest Bank Indiana, N.A., as trustee, dated as
of June 1, 1994 (the "Trust Agreement "); and
WHEREAS, the Authority and the Commission entered into a lease dated as of
November 1, 1993, as amended (the "Lease "), of the Project, which Lease was heretofore
approved by this Commission; and
WHEREAS, the Commission entered into a Letter of Credit and Reimbursement
Agreement with the Authority and The Fuji Bank, Limited, New York Branch ( "Fuji "), dated as
of June 1, 1994 (the "Credit Agreement "), in order to induce the Bank to issue its direct -pay
irrevocable Letter of Credit, dated July 1, 1994 (the "Letter of Credit "), to provide credit
enhancement and liquidity support for the Bonds; and
WHEREAS, the Section 406(h) of the Trust Agreement permits the Authority to
substitute the Letter of Credit with an alternate letter of credit upon fulfilling certain conditions
stated therein; and
WHEREAS, it is expected that the Authority will act at its next meeting to
authorize any and all actions as may be necessary to cause the Letter of Credit to be substituted
with an alternate letter of credit expected to be issued by Landesbank Hessen - Thurigen
Girozentrale, through its New York Branch ( "Landesbank "); and
WHEREAS, the substitution of the Letter of Credit with an alternate letter of credit
issued by Landesbank will result in a debt service savings to the Authority because of the
stronger credit rating of Landesbank; and
WHEREAS, the Commission desires to authorize such actions as may be
necessary, including without limitation, the execution of a letter of credit and reimbursement
agreement with the Authority and Landesbank, to provide for the issuance of an alternate letter
of credit by Landesbank;
NOW, THEREFORE, BE IT RESOLVED, by this South Bend Redevelopment
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Commission as follows:
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Section 1. The President or Vice - President and Secretary are authorized to
approve and execute and attest, respectively, on behalf of the Commission a letter of credit and
reimbursement agreement with Landesbank in form and substance acceptable to the President or
Vice - President and Secretary with said officers' execution and attestation to be conclusive
evidence of their approval. The President or Vice - President and Secretary are further authorized
to enter into such certificates or take such other actions as may be necessary to effect the
replacement and substitution of the Letter of Credit with an alternate letter of credit issued by
Landesbank.
Section 2. This Resolution shall be in full force and effect after its adoption
by the Commission.
ADOPTED at a meeting of the South Bend Redevelopment Commission held on
September , 1996, at 1308 County -City Building, 227 West Jefferson Boulevard, South
Bend, Indiana 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
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William P. cki, ecretary
Paula N. Auburn, President
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