HomeMy WebLinkAboutNo. 0189 authorizing sale, issuance, delivery of preliminary loan notes in the aggregate principal amount of $1,375,000, execution of requisition agreement No. 2, execution/delivery of project temp. loan note No. 3 (Project No. IND R-57)a
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HUD -3080a
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Resolution No. 189
RESOLUTION AUTHORIZING THE SALE, ISSUANCE, AND DELIVERY
OF PRELIMINARY LOAN NOTES IN THE AGGREGATE PRINCIPAL
AMOUNT OF $ 1, -375, 000. 00 , THE EXECUTION OF
REQUISITION AGREEMENT NO. 2 , AND THE EXECUTION
AND DELIVERY OF PROJECT TEMPORARY LOAN NOTE NO._,
.IN CONNECTION WITH PROJECT NO. TND. R -57
EAS, (herein
P "Local Public Agency" ) has entered into a contract dated as of the
of r1i , 19f�6_, numbered Contract No. Ind. R -, T(W) ,
ogether with any supplements thereto or amendments, modifications, or
f any provisions thereof, is herein called the "Loan and Grant
), with the United States of America (herein called the "Government ")
in part, for a Project Temporary Loan by the Government to the
lic Agency under Title I of the Housing Act of 1949, as amended
. 1+50 et seq.), in an amount outstanding.at any one time not to
20 600 8o8.00 to aid the Local Public Agency in its
ag and carrying out of a certain urban renewal project (herein called
act ") designated Project No. Ind. R -57 , which is more
atified in the Loan and Grant Contract; and
.AS, the Government has agreed, pursuant to Requisition Agreement
with the Local Public Agency dated as of the 9th` day of
1966 (herein called the "Outstanding Requisition
to make a payment on account of said Project Temporary Loan on the
y of . August , 19 , which Project Temporary Loan
,s been pledged for the payment of the principal of and interest upon
unary Loan Notes (First "C" Series).of the Local Public Agency which
the 11th day of August 19_61, and are herein called
anding Preliminary Loan Notes; and
WHEREAS, pursuant to advertisement for the receipt of proposals for the
purchase of the Second "C" Series of Preliminary Loan Notes (herein sometimes
called "New Preliminary Loan Notes ") of the Local Public Agency aggregating
$ 1 .00 , which appeared in a Notice of Sale published in the
June 27 and June 30 , 1967 , issues of the
South Bend Tribune June 27 in Tri Count News June 30 in the City of
South Be , In zana , and in the June 27 , 19
issue -of 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 canvassed at the time and place mentioned in
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said advertisement, to wit: At 120 West LaSalle Avenim
in the C'ty of _ South Bend _� Indiana , at
o'clock, _p .M. , V.D.S _.T., �TL1y I-_
which ur bosals are as follows:
Name of Bidder
Bank of Americ
Bank, and Di
First Barak and
National Bank ,
77W
N.T. & S.A., First.National City
.ount Corporation of New York
Interest
Principal
Rate
Amount
3 -66%
$1,3T5i000
r
$15.00
•
Yf
said advertisement, to wit: At 120 West LaSalle Avenim
in the C'ty of _ South Bend _� Indiana , at
o'clock, _p .M. , V.D.S _.T., �TL1y I-_
which ur bosals are as follows:
Name of Bidder
Bank of Americ
Bank, and Di
First Barak and
National Bank ,
77W
N.T. & S.A., First.National City
.ount Corporation of New York
Interest
Principal
Rate
Amount
3 -66%
$1,3T5i000
Premium
$10.00
.rust Company of South Bend
3.23%
$1,375,000
-D-
id Trust Company
3-0%
$1, 375, 000
$15.00
WHEREAS, the interest cost at which the Local Public Agency can sell
the New 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 desirous of cooperating -with
the Loca:1 Public Agency in its endeavor to sell said New Preliminary Loan Notes
in order to reduce carrying charges and other costs of the Project:
BE ET RESOLVED BY the City of South 13encl �?edevel_ornnQn , i ssi ony rrn)P22ning
B-04v o he De artme AS FOLLOWS:.
Section 1. The aforesaid publication of the Notice of Sale and the form
and contents thereof as so published are hereby, in all respects, approved,
ratified and confirmed.
Section 2. In order-to provide funds to defray expenses incurred or to be
incurred in the Local Public Agency's undertaking and carrying out of the
Project, or to retire, refund, renew, or extend its outstanding notes issued in
connects n therewith, the Local Public Agency hereby determines to borrow the
sum of -----------------------
- Dollars 103750 .00 and issue its
negotiable New Preliminary Loan Notes therefor in aggregate principal amount
equal to said sum.
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• ,�' HUD -3080a (Cont'd)
y
(9-66)
Section 3. The Local Public Agency hereby ratifies and approves the form
of the proposal hereinafter in this Section 3 enumerated, for the purchase of the
designat d principal amount of the New Preliminary Loan Notes, which proposal the
Local Public Agency hereby determines will provide the lowest interest cost and
is therefore hereby accepted, --and said New Preliminary Loan Notes are.hereby .
awarded to said purchaser, as follows: - - -
Principal. Interest
Amount Rate Purchaser
$1137.5.,00)-00 3% National Bank and Trust Company
112 West Jefferson Blvd.
South Bend, Indiana
Section 4. Each such note shall be dated the 8th day of
August , 19_6y; shall be designated "Preliminary Loan Note "; shall
be_.payab e,._as to both.principal:..and interests to bearer, on the 9th day
of August , 19 68; and, pursuant to the proposal, for the purchase
of said aotes, hereinabove accepted, shall bear the rate of interest per annum,
payable it maturity, shall bear the numbers, be in the denominations, and be
payable is to both principal and interest at the bank or trust company, as
follows:
Purchaser Number Denominations
National Bank & Trust Company 1 - 13 $100,000
112 West Jefferson Blvd. 14 75,000
South Bend, Indiana
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Interest
Rate Payable At
3.0% National Bank & Trust
Company
112 West Jefferson Blvd.
South Bend, Indiana
None of the New 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 New Preliminary
Loan No es shall be signed 'n a name of the Local Public Agency by the
Jknr the t of Sou en-'-i�c�c� -ib�i -may. and shall have the
corporate seal o impressed thereon and attested by the
Clerk of the ty of Sot3 ci Y thereof, and said officers are hereby authorized
and directed to cause said notes to be properly executed.
Se tion 5. Each of the New Preliminary Loan Notes shall be issued in
substan sally the form of the note hereto attached and marked "Exhibit A."
Section 6.' The Agreement entitled "Requisition Agreement No. 2 if
(herein 7ometimes 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 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 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
of the local Public Agency are hereby authorized.and directed to prepare and Bend
execute the Project Temporary Loan Note, in the principal amount of .One Million
Four Hundred Fortv-Eight Thousand----------------------------------------------
Dollars 1.4+8.000.00 , 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 -57 and providing
for the security for the payment thereof, and for other purposes, duly adopted
by the Local Public Agency on the 5th day of _ May , 19 66•
Said note shall be designated "Project Temporary Loan Note "; shall be numbered
No. ; shall be dated the 8th day of August 1 6
shall-be r interest from the date of the acceptance -of the Local Public9A�gency's
delivery thereof and the payment therefor.by the Governmenz; 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 �9
UNITED STATES OF AMERICA
Secretary of Housing and Urban Development
By
Title
-4
,b
HUD -3080a (Cont 1d)
(9 -66)
and shall not be valid until. said statemept is duly executed on behalf of the
Government. Said Project Tempora� oote -s gal d� livered by the Treasurer of
fseph Count ex officio Treasur rz'T rw o the Government to
b� e held an paid for by the Government in accordance with the terms and
conditions contained in said New Requisition Agreement.
Secti n 8. The proceeds derived from the sale of the'New Preliminary
Loan Notes together with such amount of other appropriate funds of the Local
Public Age cy as may be necessary, shall be applied, simultaneously with the
receipt of said proceeds, as follows:
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
3
econd: 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
$1,24o,o61.46 St. Joseph Bank & Trust First Series C
Company
Michigan & Jefferson Strts.
South Bend, Indiana
i
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.
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ex officio Treasurer of the City of South
SE ction 9. The Treasurer of St. Joseph CouM±y%ls hereby authorized and Bend
direct to send immediately.a letter to each paying agent for the New
Preliminary Loan Notes- in-substantially the-form of :the letter hereto attached:
and ma ked "Exhibit B" and to transmit: (1) the New Preliminary Loan Notes to
said p ying agent for delivery and payment in accordance with the terms of said
letter; (2) $ NONE of funds of the Local Public Agency to
the Se retary of Housing and Urban Development, to be applied against the
paymen of the principal of and interest to the date of payment on the Project
Tempor ry Loan Notes described in Section 8 hereof; and (3) funds of the Local
Public Agency to the paying agent of the designated Series of Outstanding
Prelimi ary Loan Notes, to be applied against the payment of the principal of
and int rest to maturity on such Series of Outstanding Preliminary Loan Notes,
as foll ws:
Amount Paying Agent Series
$358,255• St. Joseph Bank & Trust Company First Series C
Michigan & Jefferson Streets
South Bend, Indiana
Se tion 10. This Resolution shall take effect immediately.
Adopted at the Regular Meeting of the South Bend RedeveZopment Commission
on JuZy 20, 1967 at the office of the Commission, 120 West LaSaZZe Avenue,
Suite Z OZ, South Bend, Indiana.
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