HomeMy WebLinkAboutNo. 0311 authorizing the sale, issuance, delivery of project notes in the aggregate principal amount of $1,235,000 and execution of requisition agreement NO. 3-1970 LaSalle Park Project, IND R-57RESOLUTION NO. 311
RESOLUTION AUTHORIZING THE SALE, ISSUANCE AND DELIVERY
OF PROJECT NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF
$ 1,235,000 AND THE EXECUTION OF REQUISITION AGREEMENT
NO. 3 -1970 LASALLE PARK PROJECT, IND. R -57
HEREAS, the City of South Bend, Department of Redevelopment (herein
calle ( the "Local Issuing Agency ") has entered into one or more contracts
(whicl together with any supplements thereto or amendments or waivers of
any p ovisions thereof, are herein called the "Contract ") with the United
State of America (herein called the "Government ") providing for a loan
by thE Government to the Local Issuing Agency for financing the urban re-
newal low -rent housing or redevelopment project(s) described in the Con-
tract and herein called the "Project "; and
WHEREAS, pursuant to advertisement for the receipt of proposals for
the purchase of the Third Series 1970 of Project Notes (herein sometimes
calle "New Project Notes ") of the Local Issuing Agency aggregating
$ 1,2 5,000, which appeared in a Notice of Sale published on July 28,
1970, in the South Bend Tribune in the City of South Bend and in The
Daily Bond 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 Is-
suing Agency were received, opened, and canvassed at the time and place
mentioned in said advertisement, to wit: at Room 1200, County -City
Building, 227 West Jefferson Boulevard in the City of South Bend, Indiana,
46601, at one o'clock P.M., E.D.T., on August 11, 1970, which proposals
are as follows:
Interest Principal
Name of Bidder Rate Amount Premium
The N tional Bank and Trust
Compa of South Bend 4.19% $1,235,000 $50.00
St. Joseph Bank and Trust
Company 4.27% $1,235,000 $27.00
Bank f America, N.T.& S.A.
and Bankers Trust Company 4.24% $1,235,000 $ 1.00
First National Bank of
Boston 4.29% $1,235,000 $31.00
Morgan Guaranty Trust
Company of New York and
Salomon Brothers 4.30% $1,235,000 $33.00
City National Bank and
Trust Company 4.33% $1,235,000 NONE
Contin ntal Illinois National
Bank and Trust Company of Chicago,
First lational City Bank, The
First 3oston Corporation and
Mellon National Bank and Trust
Compan 4.47% $1,235,000 NONE
John Noveen and Company, Inc. 4.46% $1,235,000 $31.00
NOW, THEREFORE, BE IT RESOLVED by the Local Issuing Agency as follows:
S ction 1. The aforesaid publication of the Notice of Sale and the
form a d contents thereof as so published are hereby, in all respects, ap-
proved, ratified and confirmed.
S ction 2. In order to provide funds to pay expenses incurred or to
be inc rred in the development of the Project, or to refund, renew or ex-
tend its outstanding Notes issued in connection therewith, the Local Is-
suing kgency hereby determines to borrow the sum of One Million Two Hun -
dred T irty Five Thousand Dollars ($ 1,235,000) and issue its negotiable
ProjecJt 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 in-
terest rate and is therefore accepted, and said Notes are hereby award-
ed to the purchaser, as follows:
Princ al Amount Interest Rate Purchaser
$ 1,2 5,000 4.19% The National Bank and Trust
Company of South Bend
South Bend, Indiana 46601
ection 4. Each Note shall be dated September 8, 1970, shall be
payable as to both principal and interest to bearer, on June 4, 1971,
and, jursuant to each proposal for the purchase of said Notes herein -
above accepted, shall bear the rate of interest per annum, payable at
maturity; shall bear the numbers and be in the denominations; and shall
be pa able as to both principal and interest at the incorporated bank
havin trust powers or incorporated trust company, as follows:
Purchaser
Bank
Numbers
1 -12
Interest
Denominations Rate
$100,000 4.19%
Payable At
The National Bank
Tha National
and Trust
Co. of
13 -15
10,000
and Trust Co. of
South
Bend
16
5,000
South Bend
The N
tional Bank
Bldg.
The National Bank Bldg.
112 W.
Jefferson
Blvd.
112 W. Jefferson Blvd.
South
Bend, Ind.
46601
South Bend, Ind. 46601
None cf 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 sig-
naturE of the Mayor of the City of South Bend and shall have the corporate
seal cf said city impressed, imprinted or reproduced thereon and attested
by thE City Clerk of the City of South Bend, and said officers are hereby
authorized and directed to cause said Notes to be properly executed.
Section 5. Each such Note shall be in substantially the form of
HUD -9 10, which is incorporated herein by reference, and shall be secured
by an agreement entitled "Requisition Agreement No. 3- 1970" (herein called
the equisition Agreement "), in substantially the form of HUD -9003,
which is incorporated herein by reference, to be entered into between the
Local Issuing Agency and the Government.
Section 6. The Requisition Agreement shall be executed in the name
of thE Local Issuing Agency by the manual or facsimile signature of the
Presi ent 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 Requisition Agreement to be properly executed.
Section 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 Gov-
ernment 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 amounts authorized or re-
uired 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
Proje t are hereby irrevocably pledged to secure the payment of the prin-
cipal 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 principal 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 re-
ceipt of said proceeds, in accordance with the provisions of the Requi-
sitiolli Agreement.
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ection 9. The Treasurer of St. Joseph County, ex officio Treasurer
City of South Bend is hereby authorized and directed to send
ly a letter to each paying agent for the New Project Notes in sub -
ally the form of HUD -9004, which is incorporated herein by refer -
and to transmit therewith (a) the New Project Notes for which the
see is the paying agent for delivery and payment and (b) a sig-
certificate and receipt, in accordance with the terms of said
and to take such other actions as may be required to complete
livery transaction in accordance with the terms of the letter to
ying agent.
ction 10. This Resolution shall take effect immediately.
ection 11. Adopted at the Regular Meeting of the South Bend Re-
,pment Commission held on August 21, 1970, in the Office of the Com-
�n, Room 1200 County -City Building, 227 West Jefferson Boulevard,
Bend, Indiana.
e v. Williams, Secretary
(SEAL)
CITY OF SOUTH BEND
DE