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HomeMy WebLinkAboutNo. 0188 to further amend a resolution authorizing issuance of certain project temp. loan notes in connection with Urban Renewal Project No. IND R-57 providing for security for pmt. thereof and other purposesRESOLUTION N©. 189 RESOLUTION TO FURTHER AMEND A RESOLUTION AUTHORIZING THE ISSUANCE OF CERTAIN PROJECT TEMPORARY LOAN NOTES IN CONNECTION WITH URBAN RENEWAL PROJECT NO. IND. R -57 AND PROVIDING FOR THE SECURITY FOR THE PAYMENT THEREOF, AND FOR OTHER PURPOSES. WHER S, the United States of America (herein called the "Government ") and the C ty of South Bend, Department of Redevelopment (herein called the "Local P lic Agency "), have entered into a certain Loan and Capital Grant Contract, dated April 22, 1966, and identified as Contract No. Ind. R- 57(LG) (said Con tact as heretofore amended being herein called the "Existing Contract "); and WHER S, a Resolution entitled "Resolution Authorizing the Issuance of Certain P oject Temporary Loan Notes in Connection with Urban Renewal Project No. Ind. -57 and Providing for the Security for the Payment Thereof, and for other pur oses ", was duly adopted by the South Bend Redevelopment Commission of the Ci y of South Bend, Department of Redevelopment on May 5, 1966 (said Resolutio as heretofore amended being herein called the "Basic Note Resolution "); and WHEREAS, it is necessary that the Basic Note Resolution be amended so that the provi ions thereof will be responsive to and consistent with the provisions of the.Ex sting Contract as amended by First Amendatory Contract amending Loan and Capit l Grant Contract No. Ind. R- 57(LG). NOW, THEREFORE, BE IT RESOLVED BY THE South Bend Redevelopment Commission of the Ci y of South Bend, Department of Redevelopment as follows: Section 1. That the Basic Note Resolution be amended as follows: (a) y deleting Sections 1 through 3 and substituting the following Sections 14 through 3 in lieu thereof: "Section 1. That in order to provide funds to enable the Local Public Agency to defray expenses and costs in connection with the undertaking and carrying out of the Project, and to refund, renew, extend, or substitute for any Project Temporary Loan Notes by this Resolution authorized to be issued, there are hereby authorized-to-be issued, from time to time, Project Temporary Loan Notes of the Local Public Agency in an aggregate principal amount outstand- ing at any one time (whether authorized by this Resolution or any other Reso- lution authorizing the issuance of Project Temporary Loan Notes in connection with the Project) of not to exceed Two Million Six Hundred Thousand Eight Hundred Eight Dollars ($2,600,808.00)1. "Section 2. That each such note shall be designated "Project Temporary Loan Note ", shall be payable, as to the principal thereof together with the interest thereon, upon demand, but solely from the Project Temporary Loan Re- payment Fund hereinafter mentioned and not otherwise; shall be payable at the principal office of the Local Public Agency in any coin or currency of the United States of America which, on the date of the payment of the principal thereof and the interest thereon, is legal tender for the payment of public and private debts; shall be payable to the United States of America or order; shall be signed in the. name of the Local Public Agency by the Mayor or Acting Mayor of t e City of South Bend, Indiana; shall have the official seal of the Local Public Agency impressed thereon and attested by the City Clerk of the City of So th Pend, Indiana; and shall bear interest at the rate or rates as follows: Dur: and bea F iv sai on i whip date Ink 6 -mi and to date f on per "Sec statemer the foll (a) Cng the period from the date of the acceptance of delivery of payment for each such Note through June 30 , 1967, (herein _ed the "Initial Interest Period "), said principal sum shall interest on the unrepaid amount thereof at the rate of and One- Fourth per centum (S --t%) per annum. From and after I date each such Note shall bear interest on the unrepaid icipal amount thereof at a redetermined rate (to be duly noted )ehalf of the United States of America on the reverse thereof), !h shall be initially determined and become effective on the immediately following the expiration of the :ial Interest Period and shall be successively redetermined at )nth intervals thereafter on January 1 and July 1 of each year; each such redetermined rate shall become effective, with respect iayments unrepaid on the date immediately preceding the effective r of such redetermined rate, in accordance with the following tula: The redetermined rate shall not exceed six per centum (6%) annum, but otherwise shall be the higher of: (a) The "going Federal rate" determined pursuant to the provisions of Title I of the Housing Act of 1949, as amended, and effective on the effective date of such redetermined rate; or (b) A rate per annum equal to the average yield to maturity on all outstanding obligations of the United States having a maturity of approximately five years from the May 1 or November 1, as the case may be, next preceding the effective date of such redetermined rate, as determined by the Secretary of Housing and Urban Develop- ment upon the advice of the Secretary of the Treasury, such average yield to be estimated on the basis of daily closing market bid quotations or prices for the month of May or November next preceding the effective date of such redetermined rate, and adjusted to the nearest 1/8 of 1 percent." :ion 3. That each Project.Temporary Loan Note issued, including a : of the delivery thereof to the Government, shall be in substantially â–ºwing form: When such Project Temporary Loan Note supports a requisition for a direct Federal loan to finance the urban renewal or redevelopment project, such Note shall be in substantially the form of "Exhibit A" attached hereto and made a part hereof; Provided that each such -Project Temporary Loan Note bearing a date subsequent to the expira- tion of the "Initial Interest Period" shall state on its face the applicable interest rate and shall define therein the term "Initial Interest Period" by use of a date which shall be the end of the pertinent six -month period, both as authorized and as required by this Resolution; -2- (b) When such Project Temporary Loan Note is to be held by the Government in escrow in connection with the issuance of obligations of the Local Public Agency to aid in financing the aforementioned urban renewal or redevelopment project, such Note shall be in substantially the form of `Exhibit B" attached hereto and made a part hereof." Section 4. That this Resolution shall take effect immediately. Adopted Ot the Regular Meeting of the South Bend Redevelopment Commission on July , 1967, at the Office of the Commission, 120 West LaSalle Avenue, South Be d, Indiana. -3-