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HomeMy WebLinkAboutNo. 0274 authorizing sale, issuance, delivery of project notes in the aggregate principal amount of $270,000 and execution of Requisition Agreement No. 2 for Industrial Expansion Project IND R-56RESOLUTION NO. 274 RESOLUTION AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF PROJECT NOTES IN THE AGGREGATE AMOUNT OF $2700000.00 AND THE EXECUTION OF REQUISITION AGREEMENT NO. 2 FOR THE INDUSTRIAL EXPANSION PROJECT, IND. R -56 WHEREAS, the City of South Bend, Department of Redevelopment (herein called the "Local Issuing Agency ") has entered into one or more contracts thereof, together with any supplements thereto or amendments or waivers of any provisions thereof, are herein called the "Contract ") with the United States of America (herein called the "Government ") providing for a loan by the Goverlment to the Local Tssuing Agency for financing the urban renewal, low -rent ousing or redevelopment project(s) described in the Contract and herein ca led the "Project "; and WHE AS, pursuant to advertisement for the receipt of proposals for the purchase of the Second Series 1969 of Project Notes (herein sometimes called "New Project Notes ") of the Local Issuing Agency aggregating $270,000, which appeared in a Notice of Sale published on September 3, 1969, in the South Bend Tribune in the City of South Bend, State of Indiana and in The Daily Boni, Buyer in the City of New York, New York, proposals for the purchase of the New Project Notes in the form approved by the Local Issuing Agency were rece ved, opened, and canvassed at the time and place mentioned in said advertisement, to wit: at Suite 1001, 120 West LaSalle Avenue in the City of South Ben 4, Indiana 46601 at one o'clock P.M. E.D.S.T., on September 16, 1969, which pro osals are as follows: Interest Principal Name of Bidder Rate Amount Premium St. Joseph Bank and Trust 5.95% $270,000.00 $27.00 Company South Bend. Indiana NOW,ITHEREFORE, BE IT RESOLVED by the Local Issuing Agency as follows: Sect on 1. The aforesaid publication of the Notice of Sale and the form and Conte is thereof as so published are hereby, in all respects, approved, ratified and confirmed. Section 2. In order to provide funds to pay expenses incurred or to be incurred In the development of the Project, or to refund, renew or extend its outstanding Notes issued in connection therewith, the Local Issuing Agency hereby determines to borrow the sum of Two Hundred Seventy Thousand Dollars ($270,000) and issue its negotiable Project Notes therefor. Section 3. The Local Issuing Agency hereby ratifies and approves the form of each proposal hereinafter in this Section 3 enumerated for the purchase of the designated principal amount of Notes and determines that each such proposal offers to purchase such Notes at the lowest interest rate and is therefore accepted, and said Notes are hereby awarded to the purchaser, as follows: $270,000.00 Interest Rate Purchaser 5.95% St. Joseph Bank and Trust Company 202 South Michigan South Bend, Indiana Section 4. Each Note shall be dated October 15, 1969, shall be payable as to both principal and interest to bearer, on October 16, 1970, and, pursuant to each proposal for the purchase of said Notes hereinabove accepted, shall bear the rate of interest per annum, payable at maturity; shall bear the numbers and be in the denominations; and shall be payable as to both pricipal and int rest at the incorporated bank having trust powers or incorporated trust c mpany, as follows: Interest Purchaser Numbers Denominations Rate Payable At St. Joseph Bank 1 to 54 $5,000 5.95% St. Joseph Bank and and Trust Company Trust Company 202 South Michigan 202 S. Michigan South B nd, Indiana South Bend, Indiana None of such Notes shall be valid until after the bank or trust company at which it is payable shall have signed the agreement, appearing on each Note, to act as paying agent thereof. Each such Note shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the Mayor of the City of South Bend and shall have the corporate seal of the said City impress d, imprinted or reproduced thereon and attested by the City Clerk of the Cit of South Bend, and said officers are hereby authorized and directed to caus said Notes to be properly executed. Section 5. Each such Note shall be in substantially the form of HUD -9010, which iss incorporated herein by reference, and shall be secured by an agreement entitle "Requisition Agreement No. 2" (herein called the "Requisition Agree- ment"), in substantially the form of HUD -9003, which is incorporated herein by refe ence, to be entered into between the'Local Issuing Agency and the GovernmeInt. Section 6. The Requisition Agreement shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the President of the Local Issuing Agency and shall have the corporate seal of the Local Issuing Agency impressed, imprinted or reproduced thereon and attested by the Secretary, and said officers are hereby authorized and directed to cause the Requisit on Agreement to be properly executed. Sec ion 7. For the punctual payment of the principal of and interest on the New Project Notes, the Local Issuing Agency hereby expressly and irrevocably promises to pay any sums which may be received from the Government pursuant to the Requisition Agreement relating to such series of Project Notes and said Agreement, when executed by the Government, is hereby declared to be and is hereby assigned by the Local Issuing. Agency for the benefit of the holder or holders from time to time of the New Project Notes. All contributions, funds and amomits authorized or required by the Contract to be applied to the payment of Project Loan Notes (referred to in the Contract as "Project Temporary Loan Obligations", "Advance Notes" or "Permanent Notes ") as issued in connection with the Project are hereby irrevocably pledged to secure the payment of the principal. of and interest to maturity on the New Project Notes. Such pledge and the lien created thereby shall cease and terminate when monies or investment securities convertible into cash not later than the maturity date of the New Project Notes, sufficient and for the purpose of paying the principa and interest to maturity on such Notes, are deposited with the paying agent or agents for such Notes. Section 8. The proceeds derived from the sale of the New Project Notes, together with such amount of other funds of the Local Issuing Agency as may be necessary, shall be applied, simultaneously with the receipt of said proceeds, in accordance with the provisions of the Requisition Agreement. Sectlion 9. The Treasurer of St. Joseph County, ex /officio Treasurer of -2- the City of South Bend is hereby authorized and directed to send promptly a letter to each paying agent for the New Project Notes in substantially the form of HUD -9004, which is incorporated herein by reference, and to transmit therewith (a) the New Project Notes for which the addressee is the paying agent f r delivery and payment and (b) a signature certificate and receipt, in acco dance with the terms of said letter, and to take such other actions as may a required to complete the delivery transaction in accordance with the to of the letter to the paying agent. Section 10. This Resolution shall take effect immediately. Section 11. Adopted at the Regular Meeting of the South Bend Redevelop- ment Co fission held in their office at 120 West LaSalle Avenue, Suite 1001, South Bend, Indiana on September 19, 1969. CITY OF UTH BEND DEPARTMENT OF REDEVELOPMENT tary SEAL -3- r A. Wiggins, PregiAent