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HomeMy WebLinkAboutNo. 0140 authorizing sale, issuance, delivery of premininary loan notes in the aggregate principal amount of $1,195,000, execution of requisition agreement No. 1, execution/delivery of project temp. loan note No. 2 in connection with Project No. IND R-57i:.l -ih 'U1J lit r: - r HUD -300 (11 -65) RESOLUTION AUTHORIZING TriZ SALE, ISSUANCE AND DELIVERY OF PRELIMINARY LOAN NOTES IN`-THE AGGREGATE PRINCIPAL AMOUNT OF $0.00 ; THE.EXECUTION OF REQUISITION AGRELMFN` NO. , AND THE EXECUTION.AND DELIVERY OF PROJECT =- TEMPORARY LOAN NOTE NO. 2 , IN CONNECTION WITH PROJECT NO. Ind. -.R -S? Resolution No. 140 ' , � ' F . 9 Cit of S o u t h Bend De rtment of Redevelopment, ;herein called the "Local Public.Agency" has entered into a contract dated ass of the 22 d day of April , 19 66, numbered Contract No. Ind. R-g;?( m)__ -___p (vmnich., to ether with any supplements thereto or amendments, modifica ots ox• �Ttv vers of any provisions thereof, is herein called the "Loan and Grant Contrr:`rs )� with the U ted States of America (herein called the "Government94) providing, :",-n part, for a Project Temporary Loan by the Government to the Local Public Agency under Title I of the Housing Act of 1949, as amended (42 U.S.C. 1450 et :ea.), in an amount outstanding at any one time not to exceed $22484,808.00 to aid the Local Public Agency in its undertaking and carrying out of a certain u2ban re4eal project (herein called the "Project ") designated Project No. T: d.. and which is more fully identified ixr tine Loan: and oact; and WH , pursuant to advertisement for the receipt of proposals for -Oia rjuz - chase of Preliminary . Loan Notes ( First Series), hereLn sovztLrz . � 1 "'Preliminary Loan _ Notes ", of the Local. blic Agency aggregating e al lq� c, ,� � wf Bch apps ed- in:a Notic® of Sale pub>ished in the, - T,;, 2P ar issue of the. _ in the City of South Bend Indiana , aund �s � the J 28. 66 $sue of The Daily Bon e�-e iy -y.of New proposals for the purchase of said notes in the form approved by the Lori Public Agency were received, opened, and canvassed at the time and place provided by said advertisem nts to wits At 120 West LaSalle Avenue �.® in the City of South Bend , InaiaDa _S at o'clock., ,p M, P F -.. • ° , T,ai v 12 9 19.66..P C,riich proposals are as follows: _. 1 - N of BV r3 D-k of Amar. S. A. and Fi: :t'ittsburg N& Dorgan Guaxa Company of CnL ideal Ban: Trust Comgan; St. Joseph B Company - - AJjx oL111X. Interest sr. hate a. N. T. & 4.26% t National :City,Bank"' onal Bank 4.26% y Trust 4.24% ew York Principal Amount' $1,195, Premium $ 8.00 $1,195, $59.00 ".$1'195'000 $1,195,00© $18.00 New York 4.16% $1,195,000 $1.00 ak & Trust_ 3.'F5� $1,195, — —o- WHE , the interest cost at which the Local Public Agency can sell the Preliminary Loan Notes is lower than the interest rate which the Government. is required to charge the Local Public Agency under the terms of the Loan and Grant Contract., and the Government is desiWous of cooperating with the Local. Public Agency in its endeavor to sell said Preliminary Loan Notes in order to reduce carry- ing charges and other costs of the Project. BE -IT RES6LiED BY the City of South Bend Redevelopment Commission AS �01�0s Section 1. The aforesaid publication of the Notice of Sale and the form and contents thereof as so publishedt are hereby, in all respects, approved,�ratified and confirmed. . Section 2. In order.to_.provide funds to defray expenses incurred or to be incurred t e Local. Public Agency's undertaking and carrying out of the Projects.. or to retir y refundp renew or extend its outstanding notes issued`in connection therewith he Local Public Agency hereby determines to borrow the sum of one mi �} , .t ---------------------------- Dollgsrs and issue its negotiable Preliminary Loan Notes therefor-in aggregate principal mount equal to said sum. Sectio 3. The Local Public Agency hereby ratifies and approves the form of the propos hereinafter in this Section 3 enumerated, for the purchase of the designated rincipal amount of the Preliminary Loan Notes., which proposal the — 2 — HUD -3080 (Cont'a) (11 -65) Local Pablic Agency hereby determines will provide the lowest interest cost and is therefore hereby accepted's and said Preliminary Loan Notes are hereby awarded to said purchasers as follows: PrincipiLl Interest 'Puz�chaser ,mount Rate - $1,195.,000-00 3.75% St. Joseph Bank & Trust Company Michigan & Jefferson Streets South Bend, Indiana. section 4, Each such note shall be dated the day of s 19 ,.3 shall be designated "Preliminary Loan Note ®ries ) "; shall,. be payable, as to both principal and - r., , 19 meter® fs' to — earers on-the d Y of s ' and 's suant to the proposal f or' the, purchase o s d "riotes9 herai rza%ove accepted., shall bear the rate -of interest per annum, payable at maturity's shall tear the numbers, be in the denominations and be payable as to both principal and interest at the bank or trust oompany as follows: Numbers Interest 1�ch er Inclusive Denominations Rate payable At St. Joseph Baak & 1 $1,195,000 3.75% St. Joseph Bank an& st Company Trust Company :" ast Cn & Je Person Michigan & Jefferson Sts .Hchigs South Bend, Indiana: South Bend, I liana - 3 - r Ur�1. fx F Url ,x: lone of the Preliminary Loan Notes shall be valid until after the bank or trust company at which it is payable shall have signed the agreement, appearing on each such note, to act as paying agent thereof. Each of the Preliminary Loan Notes shall be signed in the name of the Local Public Agency by the o" the City of South Bend and shall hav the corporate seal o impressed thereon and attested by the Clerk of the R. ofo th Bend thereof, and said officers are hereby authorized and directed to cause said notes to be properly executed® Section 5. Each -;of -.the Preliminary Loan.Notes shall be issued in substanti ly7.the-form of-the note hereto attached and marked Exhibit "A ". Section 6. The Agreement entitled "Requisition Agreement No. 1 " (herein c ed the "Requisition Agreement "), which has been executedd by the officers cf the Local Public Agency, and has, -been presented to and read before thE meeting, and the execution thereof, are hereby fully ratified, confirmed and approved. Said Requisition Agreement, when executed by the Government, is hereby declared to be and is hereby assigned by the Local Public Agency for the benefit of the holder or holders from time to time of the Prelininary Loan Notes, and the proceeds.of the Project Temporary Loan Note executed pursuant to Section 7 hereof are hereby irrevocably pledged first, to the payment, at maturity, of the principal of and interest on the Preliminaiy Loan Notes issued pursuant to this Resolution. Section 7. The Mayor and Clerk of the Cit of South Bend are hereby author.zeci and directed to prepare and execute the Project Temporary Loan Note described in the Requisition Agreement (the issuance of which has heretofore been authorized by a Resolution Authorizing the Issuance of Certain.Project Temporary Loan. Notes in Connection with Project No. Ind. R -57 and Providing for the Security for the Payment Thereof, and for Other Purposes, duly adopted by the Local Public Agency on the th day of M8Y , 19�), in the principal amount of One Million Two Hundred.Fort ht o an - - Dollars * 1,,248,000:00 ). Said note - shallb - e- - - ~- designate "Project Temporary Loan Note "; shall be numbered Number 2 ; shall be dated the 9th day of Aujust , 19 66 ; shall bear interest from the date of the acceptance of the Local Tgency's delivery thereof and the payment therefor by the Government; shall bear a statement at the foot thereof in substantially the following form: ."Delivery of this note was accepted and payment therefor made on the day of , 19 UNITED STATES OF AMERICA - Secretary of Housing and Urban Development - BY (Title) j� .. and the Of St. Jose °tae the Notes$ t Public receipt ace btL1X r OtIJX HUD -3080 (Conttd) (11 -65) l mot be valid until said statement is duly executed on behalf of rnment. Said Project Temporary Loan Not delivered by the Treasurer tnt ex officio Treasurer of the City of ` ' 1 " to rnmen o e el an p d or by the Government in accordance with s and conditions contained in said Requisition Agreement. tion 8. The proceeds derived from the sale of the Preliminary Loan ogether with such amount of other appropriate funds of the Local gency as may be necessary, shall be applied, simultaneously with the of said proceeds, as follows: Firsts To the payment and discharge of the principal of and interest on the following Project Temporary Loan Notes of the Local Public Agency - issued pursuant to the Loan and Grant Contract and held or to be held by the Government for its own use and benefit on the date of the Preliminary Loran Notes herein authorized: No. Date 1 5 -2o -66 Principal Amount $340,000.00 Second: Any balance of such proceeds shall be deposited in the appropriate account or fund established pursuant to the Loan and Grant Contract and shall be used only in accordance with the provisions of the Loan and Grant Contract. officio 'treasurer of the City of South tion 9. The Treasurer -�:)f St Jose -ph Cotmty ex / is hereby Bend ee•and directed to send immediately a letter to each paying agent Preliminary Loan Notes in substantially the form of the Letter of ions hereto attached and marked Exhibit "B" and to transmit the ,ary Loan Notes to said paying agent for delivery and payment in ice with the terms of said letter. ;tion 10. This Resolution shall take effect immediately. - 5 -