HomeMy WebLinkAboutNo. 0227 authorizing sale, issuance, delivery of preliminary loan notes in aggregate principal amount of $1,375,000, execution of requisition agreement No. 3, execution/delivery of Proj. Temp. Loan Note No. 4 with Proj. No. IND R-57WHET
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RESOLUTION NO. 227
RESOLUTION AUTHORIZING THE SALE, ISSUANCE, AND DELI-
VERY OF PRELIMINARY LOAN NOTES IN THE AGGREGATE PRIN-
CIPAL AMOUNT OF $1,375,000.00, THE EXECUTION OF RE-
QUISITION AGREEMENT NO. 3, AND THE EXECUTION AND DE-
LIVERY OF PROJECT TEMPORARY LOAN NOTE NO. 4, IN CON-
NECTION WITH PROJECT, NO. IND. R -57
EAS, City of South Bend, Department of Redevelopment (herein called
1 Public Agency ") has entered into a contract dated as of the 22nd
ril, 1966, numbered Contract No. Ind. R- 57(LG), (which, together
supplements thereto or amendments, modifications, or waivers of
sion thereof, is herein called the "Loan and Grant Contract "), with
d States of America (herein called the "Government ") providing, in
a Project Temporary Loan by the Government to the Local Public
.der Title I of the Housing Act of 1949, as amended (42 U.S.C. 1450
in an amount outstanding at any one time not to exceed $2,461,582.00
e Local Public Agency in its undertaking and carrying out of a
,rban renewal project (herein called the "Project ") designated Pro -
Ind. R -57, which is more fully identified in the Loan and Grant
and
WHF.REAS, the Government has agreed, pursuant to Requisition Agreement
No. 2 with the Local Public Agency dated as of the 8th day of August, 1967
(herein called the "Outstanding Requisition Agreement ")`, to make a payment
on acco nt of said Project Temporary Loan on the 9th day of August, 1968,
which Project Temporary Loan payment has been pledged for the payment of
the principal of and interest upon the Preliminary Loan Notes Second "C"
Series of the Local Public Agency which mature on the 9th day of August,
1968, and are herein called the "Outstanding Preliminary Loan Notes;" and
WHEREAS, pursuant to advertisement for the receipt of proposals for the
purchase of the Third "C" Series of Preliminary Loan Notes (herein some-
times called "New Preliminary Loan Notes ") of the Local Public Agency ag-
gregating $1,375,000.00, which appeared in a Notice of Sale published in
the June 25th and June 27th, 1968, issues of the South Bend Tribune June
25th, 1968 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 said advertisement, to wit: At 120 W. LaSalle Ave-
nue in the City of South Bend, Indiana, at one o'clock, P. M., E.D.S. time,
July 9, 1968, which proposals are as follows:
Interest Principal
Name of Bidder Rate Amount Premium
North ern Trust Company & A. G. Becker 3.72% $1,375,000 $15.00
Indiana National Bank of Indianapolis 3.689/6 1,375,000 13.00
St. Joseph Bank and Trust Company 3.59% 1,375,000 11.00
Continental Illinois National Bank &
Trust ompany of Chicago and First
Boston Corporation 3.56% 1,375,000 41.00
Morgan Guaranty Trust Company of New
York a d Salomon Brothers and Hutzler 3.48/Do 1,375,000 76.00
First I at ional Bank of Boston and John
3.4796 1,375,000 55.00
Nuveenl& Co. Inc.
Bank 4 America, N.T. & S.A. and First
Nation 1 City Bank 3.38% 1,375,000 70.00
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 theLocal Public Agency under the terms of
the Loan and Grant Contract, and the Government is desirous of cooperating
with the Local Public Agency in its endeavor to sell said New Preliminary
Loan Notes in order to reduce carrying charges and other costs of the Pro-
ject:
BE IT RESOLVED BY the City of South Bend, Redevelopment Commission AS
FOLLOWS:
Section 1. The aforesaid publication of the Notice of Sale and the
form a contents thereof as so published are hereby, in all respects, ap-
proved, 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 connection therewith, the Local Public Agency hereby determines
to borrow the sum of One Million Three Hundred Seventy Five Thousand Dollars
($1,375,000.00) and issue its negotiable New Preliminary Loan Notes therefor
in ag egate principal amount equal to said sum.
Section 3. The Local Public Agency hereby ratifies and approves the
form of the proposal hereinafter in this Section 3 enumerated, for the pur-
chase of the designated principal amount of the New Preliminary Loan Notes,
which proposal the Loeal Public Agency hereby determines will provide the
lowest interest cost and is therefore hereby accepted, and said New Prelim-
inary Ioan Notes are hereby awarded to said purchaser, as follows:
$1,375,000.00 3.389/6 Bank of America, N.T. & S.A. and
First National City Bank
300 Montgomery
San Francisco, California 94120
shall
prine
shall
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and in
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N. T. &
First
Nationi
Bank
300 Moi
San Fri
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or tru
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seal o
City o
rected
subst
tion 4. Each such note shall be dated the 6th day of Augus%,1968;
designated "Preliminary Loan Note;" shall be payable, as to both
1 and interest, to bearer, on the 8th day of August, 1968; and,
to the proposal for the purchase of said notes, hereinabove accepted,
ar the rate of interest per annum, payable at maturity, shall bear
ers, be in the denominations, and be payable as to both principal
rest at the bank or trust company, as follows:
nia 94120
the New Preliminary Loan Notes shall be valid until after the bank
t company at which it is payable shall have signed the agreement,
ng on each such note, to act as paying agent thereof. Each of the
liminary Loan Notes shall be signed in the name of the Local Public
by the Mayor of the City of South Bend and sla 11 have the corporate
the said City impressed thereon and attested by the Clerk of the
South Bend thereof, and said officers are hereby authorized and di
to cause said notes to be properly executed.
Each of the New Preliminary Loan Notes shall be issued in
the form of the note hereto attached and marked "Exhibit A!'
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Interest
chaser
Number
Denominations
Rate Purchaser
America,
First National
S.A. and
1 -5
$100,000.00
City Bank,55 Wall
6 -11
50,000.00
3.38% Street, New York,
1 City
New York 10015
12 -25
25,000.00
tgomery
26 -35
10,000.00
ncisco
36 -60
5,000.00
nia 94120
the New Preliminary Loan Notes shall be valid until after the bank
t company at which it is payable shall have signed the agreement,
ng on each such note, to act as paying agent thereof. Each of the
liminary Loan Notes shall be signed in the name of the Local Public
by the Mayor of the City of South Bend and sla 11 have the corporate
the said City impressed thereon and attested by the Clerk of the
South Bend thereof, and said officers are hereby authorized and di
to cause said notes to be properly executed.
Each of the New Preliminary Loan Notes shall be issued in
the form of the note hereto attached and marked "Exhibit A!'
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Section 6. The Agreement entitled "Requisition Agreement No. 3" (here -
,in sometimes called the "New Requisition Agreement "), which has been execu-
ted 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 ex-
ecuted 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 here-
by 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 are hereby
authorized and directed to prepare and execute the Project Temporary Loan
Note, in the principal amount of One Million Four Hundred Fifty Five Thou-
sand Dollars ($1,455,000.00), 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
securit for the payment thereof, and for other purposes, duly adopted by
the Loc l Public Agency on the 5th day of May, 1966 as amended.
Said note shall be designated "Project Temporary Loan Note;" shall be num-
bered No. 4; shall be dated the 6th day of August, 1968; shall bear inter-
est fron 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 following form:
and sha
the Gov
Treasur
Bend to
dance w
ment.
Loan No
cal Pub
the rec
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
.1 not be valid until said statement is duly executed on behalf of
!rnment. Said Project Temporary Loan Note shall be delivered by the
!r of St. Joseph County ex officio Treasurer of the City of South
the Government to be held and paid for by the Government in accor-
.th the terms and conditions contained in said New Requisition Agree -
!tion 8. The proceeds derived from the sale of the New Preliminary
:es, together with such amount of other appropriate funds of the Lo-
.ic Agency as may be necessary, shall be applied, simultaneously with
!ipt.of said proceeds, as follows:
First: To the payment and discharge of the principal
of and interest on the following Project Tem-
porary 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
Second: Pursuant to the provisions of the Outstanding
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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 Prelim-
inary Loan Notes of the Local Public Agency:
Amount Paving Agents, Series
$1,416,364.58 National Bahk & Trust Co. Second Series C
112 W. Jefferson Boulevard
South Bend, Indiana
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.
Section 9. The Treasurer of St. Joseph County ex officio Treasurer
of the City of South Bend is hereby authorized and directed to send im-
mediately a letter to each paying agent for the New Preliminary Loan Notes
in substantially the form of the letter hereto attached and marked "Exhi-
bit B" and to transmit: (1) the New Preliminary Loan Notes to said pay-
ing agent for delivery and payment in accordance with the terms of said
letter; (2) $ -0- of funds of the Local Public Agency to the Secretary of
Housing and Urban Development, to be applied against the payment of the
principal of and interest to the date of payment on the Project Temporary
Loan Notes described in Section 8 hereof; and (3) funds of the Local Pub-
lic Agency to the paying agent of the designated Series of Outstanding
Preliminary Loan Notes, to be applied against the payment of the prinei-
pal,of nd interest to maturity on such Series of Outstanding Preliminary
Loan No es, as follows:
Adopted
on July
Suite 1
Amount Paying Agent Series
$;',U,394.58 National Bank & Trust Cow Second Series C
112 W. Jefferson Boulevard
South Bend, Indiana
!ction 10. This Resolution shall take effect immediately.
at the Regular Meeting of the South Bend Redevelopment Commission
18, 1968 at the office of the Commission, 120 West LaSalle Avenue,
01, South Bend, Indiana.
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