HomeMy WebLinkAboutNo. 0049 sale, issuance, delivery of preliminary loan notes in aggregate principal amount of $1,375,000, execution of requisition agreement No. 2, execution/delivery of project temp. loan note No. 3 in connection with Project No. IND R-7RE
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►LUTION #49 AUTHORIZING THE SALE, ISSUANCE, AND DELIVERY
IRELIMINARY LOAN NOTES IN THE AGGREGATE PRINCIPAL AMOUNT
;1,375,000.00, THE EXECUTION OF REQUISITION AGREEMENT NO.
►ND THE EXECUTION AND DELIVERY OF PROJECT TEMPORARY LOAN
NO. 3, IN CONNECTION WITH PROJECT NO. IND. R -7.
WHEREAS, the City of South Bend, Department of Redevelop -
men (herein called the "Local Public Agency ") has entered into
a contract dated as of the 17th day of August, 1960, numbered
Contract No. Ind. R- 7(LG), (which, together with any supple-
ments thereto or amendments, modifications, or waivers of any
provisions thereof, is herein called the "Loan and Grant
Contract"), with the United States of America (herein called
the "Government ") acting by and through the Housing and Home
Finance Administrator, providing, in part, for a Project Temporary
Loan by the Government to the Local Public Agency under Title I
of the Housing Act of 1949 (Public Law 171 - 81st Congress,
approved July 15, 1949), as amended, in an amount outstanding at
any one time not to exceed $2,527,500.00 to aid the Local Public
Agency in its undertaking and carrying out of a certain slum
clearance and urban redevelopment project (herein called the
"Pr ject ") designated Project No. Ind. R -7, which is more fully
ide tified in the Loan and Grant Contract; and
WHEREAS, the Government has agreed, pursuant to Requisition
Agreement No. 1 with the Local Public Agency dated as of the 20th
day of February, 1962 (herein called the "Outstanding Requisition
Agreement"), to make a payment on account of said Project Tempor-
ary Loan on the 24th day of August, 1962, which Project Tempor-
ary Loan payment has been pledged for the payment of the principal
of and interest upon Preliminary Loan Notes (First Series A) of
the Local Public Agency which mature on the 24th day of August,
1962, and are herein called the "Outstanding_ Preliminary Loan
Not s "; and
WHEREAS, pursuant to advertisement for the receipt of pro-
posals for the purchase of the Second Series A of Preliminary
Loan Notes (herein sometimes called "New Preliminary Loan Notes ")
of the Local Public Agency aggregating $1,375,000.00, which
appeared in a Notice of Sale published in the July 10, 1962
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
can assed at the time and place mentioned in said advertisement,
to it: At 129 West Colfax Avenue in the City of South Bend,
Indiana, at 1:00 o'clock, P.M., E.D.S.T,, July 24, 1962, which
proposals are as follows;
Interest Principal
Nam of Bidder Rate Amount Premium
Chemical
Bank New York Trust Co.
1.92%
$1,375,000
$25.00
New
York 15, New York
Morgan
Guaranty Trust Co. of N. Y.
1.8W.
$1,375,000
$26.00
New
York 15, New York
Continental
Illinois National Bank
1.79•%
$1,375,000
•0-
& Trust
Co. of Chicago
Chicago
90, Illinois
Sal
Mon Bros. & Hutzler
1.76°
$1,375,000
$37.00
New
York 5, New York
Resolution No. 49 2.
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WHEREAS, the interest cost at which the Local Public Agency
sell the New Preliminary Loan Notes is substantially lower
i the interest rate which the Government is required to
7ge the Local Public Agency under the terms of the Loan and
it Contract, and the Government is desirous of cooperating
i the Local Public Agency in its endeavor to sell said New
Liminary Loan Notes in order to reduce carrying charges and
:r costs of the Project:
BE IT RESOLVED BY The City of South Bend Redevelopment
fission 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 under-
taking 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 aggregate 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 purchase of the designated principal amount
of the New Preliminary Loan Notes, which proposal the Local
Public Agency hereby determines will provide the lowest interest
cost and is therefore hereby accepted, and said New Preliminary
Loan Notes are hereby awarded to said purchaser, as follows:
Pri cipal
Ambunt
Interest
Rate
Purchaser
$1,375,000 1076/. Salomon Bros. & Hutzler
60 Wall Street
New York 5, New York
Section 4. Each such note shall be dated the 21st day of
August, 1962; shall be designated "Preliminary Loan Note "; shall
be payable, as to both principal and interest, to bearer on the
23rd day of August, 1963; and, pursuant to the proposal for the
purchase of said notes, hereinabove accepted, shall bear the
rate of interest per annum, payable at maturity, shall bear the
numbers, be in the denominations, and be payable as to both
principal and interest at the bank or trust company, as follows:
Denomi- Interest
Purchaser Number nations Rate Payable at
Salomon Bros. & Hutzler 1 -6 $100,000 1.76/ The Chase Man -
60 Wall Street 7 -15 50,000 hattan Bank
Neu-York 5, New York 16 -23 25,000 1 Chase Manhattan
24 -33 10,000 Plaza
34 -38 51000 New York 15, N.Y.
Resolution No. 49
3.
None of the New 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 New 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 said City impressed 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 New Preliminary Loan Notes shall
be issued in substantially the form of the note hereto attached
and marked "Exhibit A."
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Section 6. The Agreement entitled "Requisition Agreement
2" (herein sometimes called the "New Requisition Agreement "),
::h has been executed by the officers of the Local Public
acy, and has been presented to and read before the meeting,
the execution thereof, are hereby fully ratified, confirmed,
approved. Said New Requisition Agreement, when executed by
Government, is hereby declared to be and is hereby assigned
he Local Public Agency for the benefit of the holder or
tiers from time to time of the New Preliminary Loan Notes, and
proceeds of the Project Temporary Loan Note executed pursuant
Section 7 hereof are hereby irrevocably pledged, first, to
payment, at maturity, of the principal of and interest on
New Preliminary Loan Notes issued pursuant to this Resolution.
Section 7. The Mayor and Clerk of the City of South Bend
hereby authorized and directed to prepare and execute the
ject Temporary Loan Note, in the principal amount of One
Lion Four Hundred Thirty Nine Thousand Dollars ($1,439,000.00),
gibed in the New Requisition Agreement, the issuance of which
heretofore been authorized by a certain basic Note Resolution
tiding for the issuance of certain Project Temporary Loan
�s in connection with Project No. Ind. R -7 and providing for
security for the payment thereof, and for other purposes,
r adopted by the Local Public Agency on the 4th day of
.ist, 1960.
note shall be designated "Project Temporary Loan Note ";
1 be numbered No. 3; shall be dated the 21st day of August,
s shall bear interest from the date of the acceptance of
Local Public Agency's delivery thereof and the payment
efor by the Government, shall bear a statement at the foot
eof in substantially the following forms
livery of this note was accepted and payment therefor made
the day of It 196
UNITED STATES OF AMERICA
Housing and Home Finance Administrator
By.
Resolution No. 49
M
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 to the Government
to be held and paid for by the Government in accordance with
the terms and conditions contained in said New Requisition
Agreement.
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Section. The proceeds derived from the sale: of the New
Liminary Loan Notes, together with such amount of other
ropriate funds of the Local Public Agency as may be necessary,
11 be applied, simultaneously with the receipt of said pro -
Is. as follows:
First: To the payment and discharge of the principal of
and interest on the following Project Temporary
Loan Noes 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
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 Preliminary
Loan Notes of the Local Public Agency:
t Paving Agent
Series
$II16,323.05 Chemical Bank New York First Series A
Trust Company
20 Pine Street
New York 15, New York
AnI, balance of such proceeds shall be deposited in the appro-
priate account or fund established pursuant to the Loan and
Grant Contract and shall be used only in accordance with the
Dr visions of the Loan and Grant Contract. ,
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Section 9. The Treasurer of St. Joseph County ex officio
:asurer oF the City of South Bend is hereby authorized and
.-ected to send immediately a letter to each paying agent for
New Preliminary Loan Notes in substantially the form of the
:ter hereto attached and marked "Exhibit B" and to transmit:
the New Preliminary Loan Hotes to said paying agent for
_ivery and payment in accordance with the terms of said letter;
None of funds of the Local Public Agency -to the Administra-
Housing and Home Finance Agency, to he applied against the
anent of the principal of and interest to the date of payment
the Project Temporary Loan Notes described in Section E
ution No. 49
50
he eof; and (3) funds of the Local Public Agency to the paying
agent of the designated Series of Outstanding Preliminary Loan
Notes, to be applied against the payment of the principal of
ane interest to maturity on such Series of Outstanding Prelimin-
ary Loan Notes, as follows:
$1�9, 90!•000
Paying Age=nt Series
Chemical Bank New York Trust First Series A
Company
20 Pine Street
New York 15, New York
Ad pted at the regular meeting of the South Bend Redevelopment
Con ission held on August 2, 1962, at the Office of the Com-
mi sion, 129 West Colfax Avenue, South Bend, Indiana
ATTEST:
0
Jars Louis, President
uth .Bend Redevelopment Cor��rniss Lon