HomeMy WebLinkAboutNo. 0069 authorizing the issuance of certain project temp. loan notes in connection with urban renewal project No. INDIANA r-7 and providing for the security for the pmt. thereof and other purposesRESOLUTION #69
RESOL ION TO AMEND A RESOLUTION AUTHORIZING THE ISSUANCE OI!
CERTAI PROJECT TEMPORARY LOAN NOTES IN CONNECTION WITH URBAN
RENEW PROJECT NO. INDIANA R -7 AND PROVIDING FOR THE SECURITY
FOR TH PAYMENT THEREOF, AND FOR OTHER PURPOSES
'VdIEREAS, the United States of America (herein called the
"Gover ent ") entered into a Loan and Grant Contract with the
Department of Redevelopment, City of South Bend (herein some-
times called the "Local Public Agency "), said contract being
dated tugust 17, 1560 and identified as Contract No. Indiana
R -7 (LG ); and
WHEREAS, said Contract was amended by a First Amendatory
Contract amending Loan and Grant Contract No. Indiana R -7(LG)
which provided, among other things, for an additional temporary
loan by the Government to the Local Public Agency in the amount
of $56j457 at a rate of four per centum (4y) per annum; and
WHEREAS, by Resolution entitled "Resolution Authorizizing
the Issuance of Certain Project Temporary Loan Notes in Connec-
tion with Urban Renewal Project No. Indiana R -7 and Providing
for the Security for the Payment Thereof, and for other purposes"
which was duly adopted by the Redevelopment Commission of the
City of South Bend, Department of Redevelopment on July 7, 1960
(herein called the "Basic Note Resolution ") the Local Public
Agency authorized the issuance of Project Temporary .Loan Notes
in an itmount not to exceed Two Million, Five Hundred Twenty -
Seven Thousand, Five Hundred Dollars ($2,527,500) and bearing
interest at the rate of Four and five- eighths per centum (4 -5 /S%)
per annum; and
WHEREAS, it is necessary to authorize the issuance of addi-
tional Project Temporary Loan Notes in an amount not to exceed
$56,457 at the rate of four per centum (4y) per annum in addition
to the Project Temporary Loan Notes heretofore authorized by the
Basic Note Resolution; and
W EREAS, it is necessary that Sections 1 and 2 of the Basic
Note R solution be amended so as to authorize the issuance of
the of rementioned additional Project Temporary Loan Notes:
N W, THEREFORE, BE IT RESOLVED by the South Bend Redevelop-
ment C mmission of the City of South Bend, Department of Redevelop-
ment, s follows:
Section 1. That Section 1 of the Basic Note Resolution is
hereby amended by deleting therefrom the amount Two Million, Five
Hundred Twenty -Seven Thousand, Five Hundred Dollars ($2,527,500)
and inserting in lieu therof the amount Two Million, Five Hundred
Eighty Three Thousand, Nine hundred Fifty -Seven Dollars ($2,553,957 .
Section 2. That Section 2 of the Basic Note Resolution is
amen de I to read as follows:
Resolution #69
2.
'Section 2. That each such note shall be designated "Project
Tempo ary Loan Note "; shall be payable, as to the principal there-
of to ether with the interest thereon, upon demand, but solely
from the Project Temporary Loan.Repayment Fund hereinafter men-
tionel and not otherwise; shall be payable at the principal office
of tha Local Public Agency in any coin or currency of the United
State3 of America which, on the date of the payment of the prin-
cipal thereof and the interest thereon, is legal tender for the
payment of public and private debts; shall be payable to the United
States of America or order; shall be signed in the name of the
Local Public Agency by the Mayor or Acting Mayor of the City of
South Bend; shall have the official seal of the City impressed
there :n and attested by City Clerk; and shall bear interest at
the r to or rates as follows:
(a) With respect to Project Temporary Loan Notes evidencing
the first Two Million, Five Hundred Twenty -Seven Thousand, Five
Hundred Dollars ($2,527,500) in aggregate principal amount of the
loan, each such Project Temporary Loan Note delivered to and paid
for by the Government during the period from August 17, 1960 to
June 30, 1965 (herein called the "Initial Loan Period "), shall
bear interest during the Initial Loan Period on the unrepaid prin-
cipal amount thereof at the rate of Four and Five - Eighths per
cent (4 -5/8/) per annum. From and after the expiration of the
Initial Loan Period, Each such Project Temporary Loan Note, whether
delivered to and paid for by the Government prior to or after the
expiration of the Initial Loan Period shall bear interest on the
unrep id principal amount thereof at the rate per annum, whichis
and shall be the higher of (1) four and one -eight (4 -118/) percent per
annum or (2) the rate, not to exceed, in any event, six per centum
(6 %) per annum, which, subject to such limitation, shall be equal to
the average yield to maturity on all outstanding marketabJ:.obliga-
Lions of the United States having a maturity of approximately five
years from the first day of May or November, as the case may be,
next preceding the expiration of the Initial Loan Period, as deter-
mined by the Housing and Home Finance: Administrator, upon the advice
of the Secretary of the Treasury of the United States of America,
by estimating such average yield on the basis of daily closing
market bid quotations or prices during the month of May or November,
as th case may be, next preceding the expiration of the Initial
Loan eriod and by adjusting such estimated average yield to the
neare t one - eighth of one per centum.
the a
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1969
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;b) With respect to Project Temporary Loan Notes evidencing
lditional loan in the aggregate principal amount of Fifty -
iousand, Four Hundred Fifty -Seven Dollars ($56,457), each
)roject Temporary Loan delivered to and paid for by the
anent during the period from September 16, 1963 to January 1,
;herein called the "Second Initial Loan Period "), shall bear
,st during the Second Initial Loan Period on the unrepaid
.pal amount thereof at the rate of Four per centum (4.0%)
inum. From and after the expiration of the Second Initial
)eriod, each such Project Temporary Loan Note evidencing
lditional loan, whether delivered to and paid for by the
anent prior to or after the expiration of the Second Initial
)eriod shall bear interest on the unrepaid principal amount
Resolution *69
3.
thereof at the rate per annum, which is and shall be the higher
of (1) Four per centum (4.0/) per annum, or (2) a rate per annum
(which shall, in no event, exceed 6 per cent per annum) equal -'--o
the average yield to maturity on all outstanding marketal.:le obli-.-
gations, of the United States having a maturity from Noven, -oer 1,
1960, of approximately 5 years, as determined by the Admsnistrator,
upon the advice of the Secretary of the Treasury, such average
yield o be estimated on the basis of daily closing market bid
quotat ons or prices for the month of November 1968, and adjusted
to the nearest 1/8 of 1 per cent.
Section 3. That the following shall be added to Section 12
of the basic Note Resolution as subsection (d) thereof:
It(
he term "Initial Loan period" as used herein shall be
deemed to have refercn`� to the "Second Initial Loan PLriod" in the
case o Project Temporary Loan Notes evidencing the additional
loan ".
Commis:
Commi s:
(S .t�L)
ATTEST
1 at the special meetingof the South Bend Redevelopment
;ion held on September 19, 1963, at the office of the
;ion, 129 West Colfax Avenue, South Bend, Indiana.
cr'r:tary
CITY OF SOUTH BEND
DEPARTMENT OF REDEVELOPMENT
I
sident r
S th Bend Redevelopment ComrAssicn