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HomeMy WebLinkAboutNo. 0317 authorizing the sale, issuance and delivery of project notes and the execution of requisition agreements, IND R-56HUD-9000 RESOLUTION NO. 317 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION, GOVERNING BODY OF THE CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT, AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF PROJECT NOTES AND THE EXECUTION OF REQUISITION AGREEMENTS, INDIANA R-56 WHEREAS, the City of South Bend, Department of Redevelopment, (herein called the "Local Issuing Agency") is undertaking the development and/or operation of one or more urban renewal, low-rent housing or redevelopment projects and may engage in such undertakings in respect to additional projects all pursuant to the terms of one or more co tracts (which contracts and any contract in substitution thereof, together with any supplements thereto or amendments or waivers of any provisions thereof, are h2rein called the "Contract") with the United States of America (herein called the "Government") providing for a loan by the Government to the Local Issuing Agency for financing the urban renewal, low-rent housing or redevel- opment projects) described in the Contract and herein called the "Project"; and WHEREAS, he Local Issuing Agency proposes.to obtain loans from others than the Government in anticipation of the delivery of notes to the Government, which loans shall be evidenced by negotiable short-term notes of the Local Issuing Agency (herein called "Project Notes"); and WHEREAS, he Local Issuing Agency proposes to issue Project Notes as herein- -fter provided• . NOW, THEREFORE, BE IT RESOLVED by the Local Issuing Agency as follows: Section 1. For the purpose of providing funds to pay expenses incurred or to be incurred pursuant to the Contract or to refund, renew or extend its outstanding Notes issued in connection therewith, the Local Issuing Agency hereby determines to issue its Project Notes for purchase by the public from time to time in amounts which shall not exceed the aggregate loan amount or the Actual Development Cost specified in t Contract, as the case may be. Such Project Notes shall be in such principal amounts, bear such interest rates, be dated and mature, all as prescribed in this Resolution. Section 2. a. The Controller of the City of South Bend is hereby authorized and directed to advertise from time to time the public sale of Project Notes of the Local Issuing Agency by causing the publication of a Notice of Sale thereof in a newspaper pursuant to State Law, if required, and in The Daily Bond Buyer, a financial newspaper published in the City of New York, New York. The Notice of Sale for publication locally shall be substantially in the form of HUD-9001, which is incorporated herein by reference. The Notice of Sale to be published in the Daily Bond Buy may be included in a consolidated Notice of Sale. Each Notice of 'ale shall be ?ublished at intervals in accordance with a schedule of advertising Arranged in co3peration with the Government. Each separate issue of Project Notes advertised for sale shall be numbered in consecutive series. b. Each proposal submitted for all or a part of any series of Project Notes shall be in substantially the form of HUD-9002, which is incorporated herein by reference, and is hereby approved by the Local Issuing Agency. Section 3. a. The Controller of the City of South Bend is hereby authorized and directed on each date specified in a duly published advertisement of the Notice of Sale fora series of Project Notes and at the time and place mentioned therein to receive, open and review all proposals received for the purchase of Project Notes. Upon completion of the review, the contents of all proposals shall be com- municated by telephone to the Government with a recommendation for award. b. The Executive Director of the Department of Redevelopment, after receiving Government approval of a recommended award,is hereby authorized and direct- ed on behalf of the Local Issuing Agency to award the Project Notes at the lowest interest rate or rates not in excess of the percentage rate per annum specified in the Contract or under State Law offered in the proposals without reference to premiums; Provided however, that as among proposals specifying the same lowest in- rate, awards shall be made on the basis of the highest premium per dollar rincipal amount of the Notes specified in such proposals. The said Executive Director shall promptly notify each successful bidder by telegram of the principal amount of Project Notes so awarded to such bidder. Section 4 substantially series of Proj to be delivere 18 months from rate or rates .f such Notes, terest thereof incorporated t be secured by which is incor Issuing Agency Pa ge 2. . Each of the Project Notes of the Local Issuing Agency shall be in the form of HUD-9010, which is incorporated herein by reference. Each 2ct Notes shall bear a date not later than the date on which they are I to the purchaser and shall mature within a term of not to exceed their date. Each series of Project Notes shall bear interest at the per annum fixed in the proposal or proposals accepted for the purchase shall be issued in such denominations, and both principal and in- shall be payable at such incorporated bank having trust powers or oust company as the purchaser designates in his proposal, and shall a "Requisition Agreement" in substantially the form of HUD-9003, 3orated herein by reference, to be entered into between the Local and the Government. Section S. Each of the Project Notes issued in a series which has been award- ed shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the Mayor of the City of South Bend and the City Clerk of the City of South Bend or his duly authorized deputy City Clerk is authorized and directed to date and to cause the seal of the City of South Bend to be impressed, imprinted or r produced thereon and to attest such sealing, and the aforesaid of.-]-icers shall take all other actions necessary to complete delivery of any Project Notes which ha e been awarded. Section 6. Each Requisition Agreement securing one or more series of Project Notes shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the President of the Redevelopment Commission and the Secretary of tie Redevelopment Commission is authorized and directed to cause the seal of the Redevelopment Commission to be impressed, imprinted or reproduced hereon and to attest the same. Section 7. The Treasurer of St. Joseph County, Ex Officio Treasurer of the City of South Bend or his duly authorized deputy is authorized and directed to deliver the PrDject Notes by signing and promptly sending after acceptance of each proposal a letter to each paying agent for such Project Notes in substantially the Co form of HUD-9034, which is incorporated herein by reference, and to transmit there- with (a) the Project Notes for which the addressee is the paying agent for delivery and payment and (b) a signature certificate and receipt, in accordance with the terms of the 12tter, and to take such other actions as may be required to complete the delivery transaction in accordance with the terms of the letter to the paying agent. Section 8- The Officers herein designated are authorized to -take all actions as may be required to validate and complete delivery of the Project Notes herein authorized to e issued from time to time. Section 9 series of Proj to pay any sum 'agreement rela .,ent when exec the Local Issu time of such s ized or requir (referred to i or "Permanent pledged to see series of Proj terminate as t convertible in and for the pu are deposited Section 1 (a) to the Gov be available f interest on ob which may be r to the paying to 'the Governm Junds o-'L-' the L a necessary t refunded in pa For the punctual payment of the principal of and interest on each et Notes, the Local Issuing Agency expressly and irrevocably promises which may be received from the Government pursuant to the Requisition ing to such series of Project Notes and each such Requisition Agree- ted by the Government is declared to be and is hereby assigned by ng Agency for the benefit of the holder or holders from time to ries of Project Notes. All contributions, funds and amounts author- d by the Contract to be applied to the payment of Project Loan Notes the Contract as "Project Temporary Loan obligations," "Advance Notes" otes") as issued in connection with the Project are irrevocably re the payment of the principal of and interest to maturity on each ct Notes. Such pledge and the lien created thereby shall cease and any series of Project Notes when monies or investment securities o cash not later than the maturity date of such Notes, sufficient pose of paying the principal and interest to maturity on such Notes, ith the paying agent or agents for such Notes. ). The said Executive Director is authorized and directed to pay ?rnment such amount of such funds of the Local Issuing Agency as may )r such purpose and as may be necessary to pay the principal of and -igations of the Local Issuing Agency then held by the Government funded in part by any one or more series of Project Notes and (b) agent or agents of any then outstanding series of Project Notes, or ant for transmittal to said paying agent or agents, such amount of )cal Issuing Agency as may be available for such purpose and as may ) pay the principal of and interest on such Project Notes which are ,t by succeeding issues of Project Notes. Section time to time amend this r holders unde holders unti expenses and half of such Section Section Commission h Room 1200, C 46601. AT TES T: Asst. Secre (SEAL) Page 3. 11. The Local Issuing Agency .hereby covenants with the holders from of any Project Notes issued under this resolution that it will not ?solution in any way which would limit or alter the rights of such Section 9 hereof or otherwise impair the rights and remedies of such L such Project Notes, together with interest thereon, and all costs, damages in connection with any action or proceedings by or on be- holders are fully met and discharged. 12. This Resolution shall take effect immediately. 13. Adopted at the Regular Meeting of the South Bend Redevelopment old October 2, 1970 at the Office of the Redevelopment Commission, )unty -City Building, 227 West Jefferson Blvd., South Bend, Indiana, ,lFredJ. He1,men CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT PresIdent, (D((an J,. Wilhelm