Loading...
HomeMy WebLinkAboutNo. 0160 authorizing sale, issuance, delivery of preliminary loan notes in the aggregate principal amount of $568,000, execution of requisition agreement No. 5, execution/delivery of Project Temp. Loan Note No. 6 in connection with Project No. IND R-29RESOLUTION NO. 160 iOLUTION AUTHORIZING THE SALE, ISSUANCE, AND DELIVERY PRELIMINARY LOAN NOTES IN THE AGGREGATE PRINCIPAL )UNT OF $568,000.00, THE EXECUTION OF REQUISITION LEEMENT NO. 5, AND THE EXECUTION AND,DELIVERY OF PRO - ,T TEMPORARY LOAN NOTE NO. 6, IN CONNECTION WITH PRO :T NO. IND. R -29. WHEREAS, City of South Bend, Department of Redevelopment (hereir called the "Local Public Agency ") has entered into a contract dated as of the 6th day of September, 1963, numbered Contract No. Ind. R -'29 (LG), (which, together with any supplements theretc or amendments, modifications, or waivers of any provisions thereof, is herein called the "Loan and Grant Contract "), with the United States of America (herein called the "Government ") providing, in 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. .C. 1450 et seq.), in an amount outstanding at any one time not to exceed $1,358,917.00 to aid the Local Public Agency in its undertaking and carrying out of a certain urban renewal project (hereir called the "Project ") designated Project No. Ind. R -29, which 's more fully identified in the Loan and Grant Contract; and WHEREAS, the Government has agreed, pursuant to Requisition Agreement No. 4 with the Local Public Agency dated as of the 9th day of August, 1966 (herein called the "Outstanding Requisition Agreement"), to make a payment on account of said Project Temporary Loan or the 17th day of February, 1967, which Project Temporary Loan payment has been pledged for the payment of the principle of and interest upon the Preliminary Loan Notes (Fourth "B" Series) of the Local Public Agency which mature on the 17th day of February, 1967, and are herein called the "Outstanding Preliminary Loan Notes "; and WHEREAS, pursuant to advertisement for the receipt of proposals for the purchase of the Fifth "B" Series of Preliminary Loan Notes (hereir sometimes called "New Preliminary Loan Notes ") of the Local Public Agency aggregating $568,000.00, which appeared in a Notice of Sale published in the January 4, 1967, issues of the South Bend Tribune in the City of South Bend, Indiana, and the January 4, 1967 issue cf the Daily Bond Buyer in the City of New York, proposals for the purchase of said New Preliminary Loan Notes in the form approved by the Local Public Agency were received, opened, and can- vassed at the time and place mentioned in said advertisement, to wit: At 120 West LaSalle Avenue in the City of South Bend, Indiana, at one o'clock, P.M., E.S.T., January 17, 1967 which proposals are as follows: Interest Principal Prem- Name of Bidder _ Rate AM2un t ium St. Joseph Bank and Trust Company of South Bend 3.40% $568,000 $19.00 National Bank & Trust Company of South Bend, 3.39% $5689000 $ -0- First lank and gust Company of South Bend 3.00% $568,000 $ -0- Bank of erica, N.T. & S.A., and First Nat'l 3.01% $568,000 $14.00 City Bank, and Discount Corp. of New York John N veen & Company, Inc. and First National 2.82% $568,000 $ 8.00 Bank of Boston a WHEREAS, the interest cost at which the Local Public Agency can 1 the New Preliminary Loan Notes is substantially lower than the erect rate which the Government is required to charge the Local lie Agency under the terms of the Loan and Grant Contract, and Government is desirous of cooperating with the Local Public ney in its endeavor to sell said New Preliminary Loan Notes order to reduce carrying charges and other costs of the Project: BE IT RESOLVED BY The City of South Bend Redevelopment Commission FOLLOWS: Section 1. The aforesaid publication of the Notice of Sale and form and contents thereof as so published are hereby, in all ects, approved, ratified and confirmed. Section 2. In order to provide funds to defray expenses incurred tote incurred in the Local Public Agency's undertaking and carrying of the Project, or to retire, refund, renew, or extend its out nding notes issued in connection therewith, the Local Public Agency eby determines to borrow the sum of Five Hundred Sixty Eight Thousand lars ($568,000.00) and issue its negotiable New Preliminary Loan es therefor in aggregate principal amount equal to said sum. Section 3. The Local Public Agency hereby ratifies and approves form of the proposal hereinafter in this Section 3 enumerated, the purchase of the designated principal amount of the New iminary Loan Notes, which proposal the Local Public Agency by determines will provide the lowest interest cost and is there - hereby accepted, and said New Preliminary Loan Notes are hereby ded to said purchaser, as follows: incipal Interest Purchaser mount Rate 68,000.00 2.82% John Nuveen and Company, Inc., and First National Bank of Boston 135 S. LaSalle Street Chicago, Illinois Section 4. Each such note shall be dated the 15th day of ruaryT 67-; shall be designated "Preliminary Loan Note"; shall payable, as to both principal and interest, to bearer, on the 11th of August, 1967; and, pursuant to the proposal for the purchase said notes, hereinabove accepted, shall bear the rate of interest annum, payable at maturity, shall bear the numbers, be in the ominations, and be payable as to both principal and interest the bank or trust company, as follows: Number Denominations n Nuveen and Company 1 $100,000 and First Nat'l 2 - 4 50,000 ., k of Boston 5 - 12 25,000 S. LaSalle Street 13 - 20 10,000 sago, Illinois 21 = 27 5,000 28 - 30 1,000 Interest Payable At Rate 21 First National Bank of Boston 45 Milk Street Boston, Mass., e of the New Preliminary Loan Notes shall be valid until after bank or trust company at which it is payable shall have signed agreement, appearing on each such note, to act as paying agent reof. Each of the New Preliminary Loan Notes shall be.signed the name of the Local Public Agency by the Mayor of the City of th Bend and shall have the corporate seal of the said -City iin- ssed thereon -2- and attested by the Clerk of the City of South betid thereof, and said officers are hereby authorized and directed to cause said notes to be properly executed. Section 5. Each of the New Preliminary Loan Notes shall be issued in substantially the form of the note hereto attached and marked "Exhibit A." Section 6. The Agreement entitled "Requisition Agreement No.,. 5" (herein sometimes called the "New Requisition Agreement "), which has been executed by the officers of 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 New Re- quisition 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 New Preliminary 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 New Preliminary Loan Notes issued pursuant to this Resolution. Section 7. The Mayor and Clerk of the City of South Bend arp hereby uthorized and directed to prepare and execute the Project Temporary Loan Note, in the principal amount of Five Hundred Eighty Thousand Dollars ($580,000.00), described in the New Requisition Agreement, the issuance of which has heretofore been authorized by a certain basic Note Resolution providing for the issuance of certain Project Temporary Loan Notes in connection with Project No. Ind. R -29 and providing for the security for the payment thereof, and for other purposes, duly adopted by the Local Public Agency on the 19th day of September, 1963 as amended. Said note shall be designated "Project Temporary Loan Note "; shall be numbered No. 6; shall be dated the 15th day of February, 1967; shall bear interest from the date of the acceptance of the Local Public Agency's delivery thereof and the payment therefor by the Government; shall bear a statement at the foot thereof in substantially the fol owing form: and sh half o delive of the for by Preli funds simul "Delivery of this note was accepted and payment therefor made on the day of , 19 tf UNITED STATES OF AMERICA Secretary of Housing and Urban Development U'S �r (Title) Ll not be valid until said statement is duly executed on be- the Government. Said Project Temporary Loan Note shall be �d by the Treasurer of St. Joseph County ex officio Treasurer .ity of South Bend to the Government to be held and paid :he Government in accordance with the terms and conditions ?d in said New Requisition Agreement. ion 8. The proceeds derived from the sale of the New ry Loan Notes, together with such amount of other appropriate the Local Public Agency as may be necessary, shall be applied, ously with the receipt of said proceeds, as follows: -3- Any account c shall be Grant Cox of the Notes in "Exhibit paying a€ said lett Secretar3 payment c Project 7 of the Lc of OutstZ of the pz Prelimine- Amount None First: 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 New Preliminary Loan Notes herein authorized: Principal No. Date Amount None Pursuant to the provisions of the Outstanding Requisition Agreement, the following amount shall be paid to the paying agent named below, for the sole and only purpose of paying the principal of and interest to maturity upon the designated Series of Outstanding Preliminary Loan Notes of the Local Public Agency: Amount Paying Agent _ Series $567,180.72 National Bank and Trust Fourth Series Company of South Bend "B" 112 -114 W. Jefferson Blvd. South Bend, Indiana lance of such proceeds shall be deposited in the appropriate fund established pursuant to the Loan and Grant Contract and ed only in accordance with the provisions of the Loan and act. Lon 9. The Treasurer of St. Joseph County ex officio Treasurer .y of South Bend is hereby authorized and directed to send Ly a letter to each paying agent for the New Preliminary Loan >ubstantially the form of the letter hereto attached and marked 3" and to transmit: (1) the New Preliminary Loan Notes to said ?nt for delivery and payment in accordance with the terms of !r; (2) $ - None - of funds of the Local Public Agency to the of Housing and Urban Development, to be applied against the the principal of and interest to the date of payment on the !mporary Loan Notes described in Section 8 hereof; and (3) funds :al Public Agency to the paying agent of the designated Series tding Preliminary Loan Notes, to be applied against the payment :ncipal of and interest to maturity on such Series of Outstanding ry Loan Notes, as follows Paying Agent Series National Bank and Trust Company Fourth Series of South Bend If B" South Bend, Indiana 10. This Resolution shall take effect immediately.