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HomeMy WebLinkAboutNo. 0315 authorizing the sale, issuance and delivery of project notes in the aggregate principal amount of $270,000 and the execution of requisition agreement No. 401970called (which any pr States by the newal, tract RESOLUTION NO. 315 RESOLUTION AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF PROJECT NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF $270,000 AND THE EXECUTION OF REQUISITION AGREEMENT NO. 401970 EREAS, The City of South Bend, Department of Redevelopment (herein the "Local Issuing Agency ") has entered into one or more contracts together with any supplements thereto or amendments or waivers of visions thereof are herein called the "Contract ") with the United of America (herein called the "Government ") providing for a loan Government to the Local Issuing Agency for financing the urban re- low -rent housing or redevelopment project(s) described in the Con - nd herein called the "Project "; and WHEREAS, pursuant to advertisement for the receipt of proposals for the purchase of the Fourth Series 1970 of Project Notes (herein sometimes called "New Project Notes ") of the Local Issuing Agency aggregating $ 270, 00, which appeared in a Notice of Sale published on September 1, 1970, in the South Bend Tribune in the City of South Bend, Indiana and in The Daily Bond Buyer in the City of New York, New York, proposals for the purchase of the New Project Notes in the form approved by the Local Issuing Agency were received, opened, and canvassed at the time and place mentioned in said advertisement, to-wit: at Room 1200 County-City Building, 227 West Jeffer on Boulevard in the City of South Bend, Indiana at one o'clock P.M. E.D.S. ., on September 15, 1970, which proposals are as follows: Name of Bidder Interest Principal Rate Amount Premium First Bank and Trust Company of South Bend 4.10% $270,000 -0- The National Bank and Trust Company of South Bend 4.30% $270,000 -0- St. Joseph Bank and Trust Company 4.34% $270,000 $ 27.00 Bank of America N.T. and S.A. with Bankers Trust Company 4.34% $270,000 $ 15.00 NOW, THEREFORE, BE IT RESOLVED by the Local Issuing Agency as follows: S ction 1. The aforesaid publication of the Notice of Sale and the form and co tents thereof as so published are hereby, in all respects, approved, ratifi d and confirmed. Section 2. In order to provide funds to pay expenses incurred or to be incurred in the development of the Project, or to refund, renew or extend its outstanding Notes issues in connection therewith, the Local Issuing Agency hereby determines to borrow the sum of Two Hundred Seventy Thousand Dollars ($270,000) and issue its negotiable Project Notes therefor. Section 3. The Local Issuing Agency hereby ratifies and approves the form of each proposal hereinafter in this Section 3 enumerated for the pur- chase cf the designated principal amount of Notes and determines that each such proposal offers to purchase such Notes at the lowest interest rate and is therefore accepted, and said Notes are hereby awarded to the purchaser, as follows: PrincipIal Amount Interest Rate Purchaser $270,000 4.10% First Bank and Trust Company of South Bend 133 South Main South Bend, Indiana S ction 4. Each Note shall be dated October 14, 1970, shall be payablE as to both principal and interest to bearer, on July 9, 1971, and, pursuant to each proposal for the purchase of said Notes herein - above accepted, shall bear the rate of interest per annum, payable at maturi y; shall bear the numbers and be in the denominations; and shall be pay ble as to both principal and interest at the incorporated bank having trust powers or incorporated trust company, as follows: Purchaser Interest Numbers Denominations Rate Payable At First Bank and Trust 1 $270,000 4.10% First Bank and Compan of South Trust Company Bend of South Bend South Eend, Indiana South Bend, Indiana None oi such Notes shall be valid until after the bank or trust company at whi h it is payable shall have signed the agreement, appearing on each Note, o act as paying agent thereof. Each such Note shall be executed in the name of the Local Issuing Agency by the manual or facsimile sig- nature of the Mayor of the City of South Bend and shall have the corporate seal ol said city impressed, imprinted or reproduced thereon and attested by the City Clerk of The City of South Bend, and said officers are hereby authorized and directed to cause said Notes to be properly executed. Section 5. Each such Note shall be in substantially the form of HUD-9010, which is incorporated herein by reference, and shall be secured by an zgreement entitled "Requisition Agreement No. 4- 1970" (herein called the "R quisition Agreement "), in substantially the form of HUD -9003, which is inc rporated herein by reference, to be entered into between the Local Issuin ( Agency and the Government. Section 6. The Requisition Agreement shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the Presid nt of the Local Issuing Agency and shall have the corporate seal of the Local Issuing Agency impressed, imprinted or reproduced thereon and attested by the Secretary, and said officers are hereby authorized and di ected to cause the Requisition Agreement to be properly executed. Section 7. For the punctual payment of the principal of and interest on the New Project Notes, the Local Issuing Agency hereby expressly and irrevocably promises to pay any sums which may be received from the Gov- ernment pursuant to the Requisition Agreement relating to such series of Project Notes and said Agreement, when executed by the Government, is hereby declared to be and is hereby assigned by the Local Issuing Agency for the benefit of the holder or holders from time to time of the New Project Notes. All contributions, funds and amounts authorized or re- uired by the Contract to be applied to the payment of Project Loan Notes referred to in the Contract as "Project Temporary Loan Obligations ", "Advance Notes" or "Permanent Notes ") as issued in connection with the Project are hereby irrevocably pledged to secure the payment of the principal of and interest to maturity on the New Project Notes. Such pledge and the lien created thereby shall cease and terminate when monies or investment securities convertible into cash not later than the maturity date o the New Project Notes, sufficient and for the purpose of paying the principal and interest to maturity on such Notes, are deposited with the paying agent or agents for such Notes. Notes , Agency receip Requis !ction 8. The proceeds derived from the sale of the New Project together with such amount of other funds of the Local Issuing as may be necessary, shall be applied, simultaneously with the of said proceeds, in accordance with the provisions of the tion Agreement. -2- Section 9. The Treasurer of St. Joseph County, ex /officio Treasurer of the City of South Bend is hereby authorized and directed to send promptly a letter to each paying agent for the New Project Notes in substantially the fo m of HUD -9004, which is incorporated herein by reference, and to transmit therewith (a) the New Project Notes for which the addressee is the pa ing agent for delivery and payment and (b) a signature certificate and re eipt, in accordance with the terms of said letter, 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. Selction 10. This Resolution shall take effect immediately. Redevel Commiss South E Attest: (SEAL) ction 11. Adopted at the Regular Meeting of the South Bend opment Commission on September 18, 1970 at the office of the ion, Room 1200 County -City Building, 227 West Jefferson Boulevard, end, Indiana. II e v. wiiiiams, secretary -3- JZZ--_a'Qr w D e 711 J. W W m, President