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RESOLUTION NO. 234
RESOLUTION AUTHORIZING THE SALE, ISSUANCE AND
DELIVERY OF PRELIMINARY LOAN NOTES IN THE
AGGREGATE PRINCIPAL AMOUNT OF $376,000.00,
THE EXECUTION OF REQUISITION AGREEMENT NO. 1,
AND THE EXECUTION AND DELIVERY OF PROJECT
TEMPORARY LOAN NOTE NO. 1, IN CONNECTION WITH
PROJECT NO. IND. R -56
AS, City of South Bend, Department of Redevelopment (herein called
Public Agency ") has entered into a contract dated as of the 31st
y, 1968, numbered Contract No. Ind. R- 56(LG), (which, together
upplements thereto or amendments, modifications or waivers of any
thereof, is herein called the "Loan and Grant Contract "),with the
tes. -of America (herein called the "Government ") providing, in
a Project Temporary Loan by the Government to the Local Public
er 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 $508,880.00
Local Public Agency in its undertaking and carrying out of a cer-
renewal project (herein called the "Project ") designated Project
-56 and which is more fully identified in the Loan and Grant Con-
S, pursuant to advertisement for the receipt of proposals for the
Preliminary Loan Notes (First Series D), herein sometimes called
y Loan Notes ", of the Local Public Agency aggregating $376,000.00,
red in a Notice of Sale published in the September 3rd, 1968 issue
h Bend Tribune in the City of South Bend, Indiana, and in the
rd, 1968 issue of The Daily Bond Buyer in the City of New York,
or the purchase of said notes in the form approved by the Local
cy were received, opened, and canvassed at the time and place pro -
id advertisement, to wit: At Suite 1001, 120 W. LaSalle Avenue,
of South Bend, Indiana, at 1:00 o'clock, P. M., E.D.S.T., Sep -'
1968, which proposals are as follows:
of Bidder
Interest
Principal
Amount Premium
Rate
!rica, N. T. &
'first National
3.12%
$376,000 $20.00
Illinois
nk and Trust
Chicago and
in Corporation
3.12%
$376,000 $12.00
my Trust Co.
and Salomon
Hutzler 3.04% $376,000 $10.00
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WHEREAS, the interest cost at which the Local Public Agency can sell
the Preliminary Loan Notes is lower than the interest rate which the Govern-
ment is iequired to charge the Local 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 Preliminary Loan Notes
in order to reduce carrying charges and other costs of the Project.
BE T RESOLVED BY the City of South Bend, Redevelopment Commission 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 connection therewith, the Local Public Agency hereby determines to
borrow the sum of Three Hundred Seventy -Six Thousand Dollars ($376,000.00)
and issue its negotiable Preliminary Loan Notes therefor in aggregate principal
amount eqlual to said sum.
Section 3. The Local Public Agency hereby ratifies and approves the
form of tie proposal hereinafter in this Section 3 enu m erated, for the
purchase f the designated principal amount of the Preliminary Loan Notes,
which pro osal the Local Public Agency hereby determines will provide the
lowest in erest cost and is therefore hereby accepted, and said Preliminary
Loan Noteo are hereby awarded to said purchaser, as follows:
Principal
Amount
$376,000
shall be
able, as
ber, 1969
hereinabo
maturity,
as to bot
Interest
Rate
Purchaser
3.04% Morgan Guaranty Trust Co.
of New York and Salomon
Brothers and Hutzler
23 Wall Street
New York, New York 10015
Lon 4. Each such note shall be dated the 15th day of October, 1968;
lesignated "Preliminary Loan Note (First Series D) "; shall be pay -
:o both principal and interest, to bearer, on the 17th day of Octo-
; and, pursuant to the proposal for the purchase of said notes,
re accepted, shall bear the rate of interest per annum, payable at
shall bear the numbers, be in the denominations, and be payable
i principal and interest at the bank or trust company as follows:
IM
Purchase
Numbers
(Inclusive)
1 - 2
Interest
Denominations Rate
$1001-000 3.04%
Payable At
Morgan Guaranty
Morgan Guaranty
Trust Co
of New
3 - 4
50,000
Trust Company of
York and
Salomon
5 - 6
25,000
New York
Brothers
and Hutzler 7 - 8
10,000
23 Wall Street
23 Wall qtreet
9
5,000
New York, New York
New York,J
New York
10
1,000
10015
10015
None 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 Mayor
of the City of South Bend and shall have the corporate seal of the said City
impresseo thereon and attested by the Clerk of the City of South 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
substantially the form of the note hereto attached and marked Exhibit "A ".
Section 6. The Agreement entitled "Requisition Agreement No. 1" (herein
called the "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 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 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 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 desc ibed 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 -56 and Providing for the Security for the Payment Thereof, and for Other
Purposes, duly adopted by the Local Public Agency on the lst day of August,
1968), in the principal amount of Three Hundred Ninety -Eight Thousand Dollars
($398,000.00). Said note shall be designated "Project Temporary Loan Note ";
shall be numbered Number 1; shall be dated the 15th day of October, 1968;
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 st tement at the foot thereof in substantially the following form:
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'?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
?1
(Title)
and shall. not be valid until said statement is duly executed on behalf of
the Government. Said Project Temporary Loan Note shall be delivered by
the .Treasurer of St. Joseph County ex officio, Treasurer of the City of
South Bend, of the Local Public Agency to the Government to be held and
paid for by the Government in accordance with the terms and conditions
containe4 in said Requisition Agreement.
Sec ion 8. The proceeds derived from the sale of the Preliminary Loan
Notes, together with such amount of other appropriate funds of the Local
Public Agency 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 Preliminary Loan Notes herein
authorized:
Principal
No. Date Amount
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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.
Section 9. The Treasurer of St. Joseph County ex officio, Treasurer
of the City of South Bend, is hereby authorized and directed to send immedi-
ately a letter to each paying agent for the Preliminary Loan Notes in sub-
stantially the form of the Letter of Instructions hereto attached and marked
Exhibit '?B?? and to transmit the Preliminary Loan Notes to said paying agent
for deli ry and payment in accordance with the terms of said letter.
This Resolution shall take effect immediately.
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11
Commission I o
LaSalle Av n
(SEAL)
ATTEST:
uAdopted at a Special Meeting of the South Bend Redevelopment
n September 24, 1968jat the office of the Commission, 120 West
e, Suite 1001, South Bend, Indiana.
ieere
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CITY OF SOUTH BEND
DEPARTMENT F REDEVELOPMENT
By:
Pr sident, South Ben
Redevelopment Commission