HomeMy WebLinkAboutNo. 0023 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 payment thereof and for other purposesF.
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OLUTION OF THE SO U T Ii B E N D REDEVELOPMENT COMMISSION,
GO ERNING BODY OF THE CITY OF SOUTH BEND, DEPARTMENT OF
REr E VE:L,OPMENT, A U T H L R: R I N G THE ISSUANCE OF C E R T A I N
s
PROJECT TEMPORARY LOAN NOTES IN CONNECTION WITH URBAN
SEC
(hen
and
A L PROJECT NO. INDIANA R- 7 AND PROVIDING F O R T H E
FOR THE PAYMENT THEREOF, AND FOR OTHER PURPOSES.
WHEREAS the City of South Bend, Department of Redevelopment
An sometimes called the "Local Public Agency "), is duly authorized
)roposes to undertake and carry out a certain urban renewal or rede-
velo ment project of the character authorized by law with financial aid by
the nited States of America (herein sometimes called the "Government ")
in the form of a Project Temporary Loan under Title I of the Housing Act
of 1949 (Public Law 171 - 81st Congress, approved July 15, 1949), as
ame ded, which may be made by the Government to the Local Public Agency
with respect to the Project in accordance with a Contract for a loan and
\ _af
grant by and between the Local Public Agency and the Government; and
WHEREAS, in order to enable the Local Public Agency to obtain such
financial aid, it is necessary for the Local Public Agency to authorize and,
from time to time, issue certain obligations as hereinafter provided:
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevel-
opment Commission, Governing Body of the City of South Bend, Department
of Redevelopment, as follows:
Section 1. That in order to provide funds to enable the Local Public
Agen y to defray expenses and costs in connection with the undertaking and
Carr ing out of the Project, and to refund, renew, extend, or substitute
for
r Project Temporary Loan Notes by this Resolution authorized to be
- 3-
Re s Elution No. 23
issued, there are hereby authorized to be issued, from time to time,
PrOect Temporary Loan Notes of the Local Public Agency in an aggre-
gate) principal amount outstanding; at any one time (whether authorized
by t�is Resolution or any other resolution authorizing the issuance of
Project Temporary Loan Notes in connection with the Project) of not
toexceed Two Million Five Hundred Twenty -Seven Thousand Five Hun-
dred Dollars ($2,527,500).
Section Z. That each such note shall be designated "Project
Temporary Loan Note "; shall be payable, as to the principal thereof
together with the interest thereon, upon demand, but solely from the
Project Temporary Loan Repayment Fund hereinafter mentioned and
not Otherwise; shall be payable at the principal office of the Local Public
Age #cy in any coin or currency of the United States of America which, on
the Oate of the payment of the principal thereof and the interest thereon,
is legal tender for the payment of public and private debts; shall be pay-
ablel to the United States of America or order; shall be signed in the name
of the Local Public Agency by the Mayor, City of South Bend, Indiana
have the official seal of the Local Public Agency impressed thereon
and attested by the City Clerk, City of South Bend, Indiana and shall bear
inte *e st at the rate or rates as follows:
(a) Each such Project Temporary Loan Note delivered to and
paid for by the Government during the period from
August 4, 1960 to June 30, 1965 (herein called the
"Initial Loan Period "), shall bear interest during the
Initial Loan Perio.d on the unrepaid principal amount .
thereof at the rate of Four and Five - Eighths per centum
(4 5 /8 %)per annum; and
(b) From and after the expiration of the Initial Loan Period,
each such Project Temporary Loan Note, whether deliv-
ered to and paid for by the Government prior to or after
the expiration of the Initial Loan Period shall bear interest
_2_
(Resolution No. 23)
the I
the I
N
on the unrepaid principal amount thereof at the rate per
annum, which is and shall be the higher of (1) Four and
One - Eighths per centum (4 1/8 %) per annum, or (2) the
rate, not to exceed, in any event, Six per centum (67o)
per annum, which, subject to such limitation, shall be
equal to the average yield to maturity on all outstanding
marketable obligations of the United States having a ma-
turity 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 determined
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 the case may
be, next preceding the expiration of the Initial Loan Pe-
riod and by adjusting such estimated average yield to the
nearest one - eighth of one per centum.
Section 3. That each Project Temporary Loan Note issued during
Loan Period, including a statement of the delivery thereof to
rnment, shall be in substantially the following form:
PROJECT TEMPORARY LOAN NOTE
Project No.
No .
ot
(herein
the "Local Public Agency "), for value received, hereby promises
to p�y, but solely from the Project Temporary Loan Repayment Fund here-
- 3 -
(Rel
Solution No. ,23)
r mentioned and not otherwise, upon demand, to the United States
of 4merica or order, the sum of
DOLLARS
($ 1 ), and at such time to pay, but solely from said Fund
and1 not otherwise, interest on said sum, from the date of the acceptance
of delivery of and the payment for this Note, at the rate or rates as follows:
During the period from the date of the acceptance of delivery
of and payment for this Note to , 19
(herein called the "Initial Loan Period "), said principal sum
shall bear interest on the unrepaid amount thereof at the rate
of ( %) per annum.
From and after said date said principal sum shall bear interest
on the unrepaid principal amount thereof at the rate per annum
(to be duly noted on behalf of the United States of America on the
reverse hereof) which is and shall be the higher of (a)
per centum ( %) per annum,
or (b) the rate, not to exceed, in any event,
per centum ( %) per annum , which,
subject to such limitation, shall be equal to the average yield to
maturity on all outstanding marketable obligations 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 preced-
ing the expiration of the Initial Loan Period, as determined by
the Housing and Home Finance Administrator, upon the advice
of the Secretary of the Treasury, by estimating such average
yield on the basis of daily closing market bid quotations or prices
during the month of May or November, as the case may be, next
preceding the expiration of the Initial Loan Period and by adjusting
such estimated average yield to the nearest one - eighth of one per
centum.
- 4 -
(Resolution No. 23)
Both the principal of and interest on this Note are payable at the
pri�cipal office of the Local Public Agency in
, in any coin or currency of the United
Stales of America, which, on the date of the payment of the principal of
interest on this Note, is legal tender for the payment of public and
prig ate debts.
This Note is issued pursuant to the provisions of (a) the Constitu-
and laws of the
inOuding particularly
of
I
,
(b) a Resolution duly adopted by the Local Public Agency on the day
of 19 , providing for the issuance of Project Tem-
po ary Loan Notes (herein called the "basic Note Resolution "); and (c) a
Re olution likewise adopted on the day of , 19
pr viding for the issuance of this particular Note; and the proceeds hereof
are to be used to defray expenses and costs involved'in the Local Public
Ag +ncy's undertaking and carrying out of a certain urban renewal or re-
development Project of the character authorized by said laws and designa-
ted Project No. , which is more fully identified in the
ba is Note Resolution. Said Project for which this Note is issued is being
assisted by the United States of America pursuant to Title I of the Dousing
Act of 1949 (Public Law 171 - 81st Congress, approved July 15, 1949, as
d and supplemented) .
Under the basic Note Resolution, there is established a separate
special fund therein referred to as the "Project Temporary Loan Re-
pa ent Fund" in which are required to be deposited certain moneys,
the ein described, as and when the same are received by the Local Public
Agi
the
the
, and this Note, together with all other notes issued pursuant to
basic Note Resolution, constitute, as to both the principal thereof and
interest thereon, an exclusive first lien and charge upon said Fund
- 5 -
(Resolution No. 23)
aft r provision therefrom in accordance with the basic Note Resolution
for only certain costs therein mentioned, and, subject only to the pro -
vis Lon for such costs, said Fund is irrevocably pledged to the payment
of the principal of and interest on this Note and all other notes which are
issued as aforesaid.
This Note shall not constitute a debt or indebtedness of the State or
of any town, city, county, municipality, or political entity or subdivision
therein
or thereof, within the meaning of any constitutional, statutory,
. local
law or charter provision, and neither the State nor any such town,
city,
county, municipality, or political entity or subdivision, other than
the
Local Public Agency, shall be liable hereon, and, in no event, shall
either
this Note or the interest thereon be payable from or out of any
funds
or properties other than those of the Local Public Agency.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all
act.-,
conditions, and things required to exist, happen, and be performed
precedent
to and in the issuance of this Note do exist, have happened, and
have
been performed in due time, form., and manner as required by law.
IN WITNESS WHEREOF, the Local Public Agency has caused this
Note
to be signed in its name and its seal to be impressed hereon and
attested,
by its proper officers thereunto duly authorized, and this Note
to b
dated the day of 19
(SE
L) By
ATTEST:
Delivery of this Note was accepted and payment therefor made on the
day f 19 ,
UNITED STATES OF AMERICA
Housing and Home Finance Administrator
By
6
N
i.
the
sue
iss
fro
ea
fol
ution No. 23)
Each such Project Temporary Loan Note placed in the custody of
Government for acceptance of delivery and payment therefor or is-
d subsequent to the expiration of the Initial Loan Period shall be
xed in substantially the foregoing form, as modified by striking there-
the recitals pertaining to the interest rate or rates to be borne by
such note, commencing with the words "at the rate or rates as
: ", and by inserting in lieu thereof the following: "at the rate of
r centum ( %) per annum."
Section 4. That there is hereby established a separate and special
which is hereby designated the "Project Temporary Loan Repayment
; Project No. Indiana R -71', said Fund being elsewhere herein referred
to �s the "Project Temporary Loan Repayment Fund ". Said Fund shall be
ma�ntai.ned in a bank or banks which are members of the Federal Deposit
Insurance Corporation. The following moneys shall be deposited in the
Project Temporary Loan Repayment Fund as and when such moneys are
received by the Local Public Agency:
(a) The proceeds of all sales of Project Land by the Local
Public Agency:
(b) All payments which are made by the Government to the
Local Public Agency on account of the Project Capital
Grant;
(c) All lease proceeds which the Local Public Agency de-
rives under leases by it of Project Land, but not beyond
the date of the establishment by the Local Public Agency
of a fund to secure the payment of a Project Definitive
Loan which may be secured, in whole or in part, by a
lien upon and pledge of such lease proceeds: Provided ,
That such lease proceeds shall not be deemed to include
income derived by the Local Public Agency directly from
- 7 -
(Resolution No. 23)
its temporary operation of Project Land pending its
preparation and ultimate sale, lease, or retention of
Project Land;
(d) All moneys constituting compensation by the Local
Public Agency for Project Land which it retains in-
stead of selling or leasing;
(e) All moneys which may be provided by the Local Public
Agency from sources other than the Government or
from the proceeds of a Project Definitive Loan, if any,
to compensate the Project Temporary Loan Repayment
Fund for the fair value imputed to Project Land which
is leased by the Local Public Agency rather than sold
by it for cash;
(f) All such Local Grants -in -Aid in the form of deficiency
cash grants as, after the Gross Project Cost and the
Net Project Cost have been determined and the payment
J of all costs comprising Item I of Gross Project Cost has
been duly made or provided for and all other Local
Grants -in -Aid applicable to the Project which have been
provided have been determined, are provided with re-
spect to the Project to meet the deficiency, if any, in
Local Grants -in -Aid in connection with the Project;
(g) All accrued interest, if any, which is paid to the Local
Public Agency on Project Temporary Loan Notes at the
time when the Government takes up and pays for such
Project Temporary Loan Notes; and
(h) The unexpended balance, if any, remaining or belonging
in the Project Expenditures Account after all costs con-
stituting Item I of Gross Project Cost have been paid,
i
8
'Rel
the I
,olution No.. 23)
Section 5. That if any Project Land is leased, instead of sold, by
)cal Public Agency, the reasonable and proper costs incurred from
to time by the Local Public Agency during the period of such lease,
Whi�h costs are for the Local Public Agency's maintenance, management,
andl administration during such period of Project Land so leased, may, to
the (extent necessary, be paid from those lease proceeds referred to as
suc4 in Section 4 hereof which are deposited in the Project Temporary
Lon Repayment Fund, but from no other moneys therein.
Section6. That project Temporary Loan Notes issued pursuant to
the provisions of this Resolution shall, as to both the principal thereof
and the interest thereon, constitute an exclusive first lien and charge
upon the funds which, by the terms of this Resolution, comprise the Proj-
ect Teir,, -:, ary Loan. Repayment Fund after provision therefrom for only
the costs mentioned in Section 5 hereof, which Fund, subject only to pro-
vision as aforesaid, is hereby irrevocably pledged to the payment of the
pri�cipal of and interest on such Project Temporary Loan Notes.
Section 7. That the
is
hereby authorized to file requisitions, together with necessary supporting
documents, with the Government, from time to time as Project Temporary
or Project Capital Grant funds are required, requesting payments to
be made on account of the Project Temporary Loan or the Project Capital
Grint provided for in the said Contract for loan and grant, and to do and
perform all other things and acts required to be done or performed in order
to obtain such payments.
Section 8. That, when and as directed by further resolution or
resolutions, the proper officers of the Local Public Agency shall prepare,
ute, and deliver to the Government the Project Temporary Loan Notes
hereby authorized and shall accept payment therefor from •the Government.
- 9 -
(R.(
Lc
;solution No. 23)
Section 9. That the proceeds of the sale of all Project Temporary
Notes issued pursuant to this Resolution shall be deposited and dis-
sed only in accordance with the provisions of the Contract for loan and
gr�nt, unless otherwise approved in writing by the Government.
Section 10. That the Project (which is designated Project No.
a R -7 and is herein called the "Project ") includes and consists of
alll undertakings and activities of the Local Public Agency in the Project
Aroa, in accordance with the Plan for the renewal or redevelopment of
thel Project Area, for the elimination and for the prevention of the deve-
lop nent or spread of slums and blight, and to the extent contemplated by
sai� Plan involves slum clearance and redevelopment and the carrying
of plans for a program of voluntary repair and rehabilitation of build-
ings or other improvements in the Project Area: Provided, That the Proj-
ect shall not include the construction or improvement of any buildings
co templated by the Plan for the renewal or redevelopment of the Project
Ar a.
Section 11. That the land area of the Project (herein called the
"P #oject Area "), is situated withing the City of South Bend, Indiana,
the boundaries of the Project Area shall be as described in the Con-
trot for loan and grant.
Section 12. That each of the following terms, when so used in this
Resolution, shall, unless the context clearly indicates otherwise, have
the
meaning ascribed to it in this Section:
(a) The term "Contract means that certain document, a
counterpart of which is now on file with the Local
Public Agency, designated Contract No. Indiana R -7 (LG),
naming the Local Public Agency and the Government as
the parties thereto, and providing for a Project Temp-
orary Loan, a Project Definitive Loan, and a Project
Capital Grant to the Local Public Agency with respect
f�
l
solution No. 23)
to the Project.
(b) The term "Plan" means the urban renewal or redevel-
opment plan referred to in the said Contract for loan
and grant.
(c) The terms "Local Grants -in- Aid ", "Gross Project Cost ",
"Item I of Gross Project Cost ", "Net Project Cost ",
"Project Land ", ".Project Temporary Loan ", "Project
Definitive Loan ", "Project Capital Grant ", "Project
N
Expenditures Account ", "fair value ", "land ", and
"redevelopment ", and derivatives thereof, have the
same meanings, respectively, attributed to said terms
in the Contract for loan and grant.
Section 13. That this Resolution shAfl take effect immediately.
ADOPTED at the regular meeting of the South Bend Redevelopment
►'`
Commission held on August 4, 1960, at the office of the Commission,
12 West Colfax Avenue, South Bend, Indiana.
SOUTH BEND REDEVELOPMENT COMMISSION
(SEAL)
ATTEST:
- 11 -
CERTIFICATE GIF RECORDING OFFICER
The undersigned HEREBY CERTIFIES that:
1. He is the duly appointed, qualified, and acting Secretary of the
Sou Bend Redevelopment Commission (herein called the "Local Public
Age cy "), and keeper of the records thereof, including the minutes of its
proc
eedings;
Z. The annexed copy of extracts from the minutes of the regular
meeting
of the Local Public Agency, held on the 4th day of August, 1960,
is a
true, correct, and compared copy of the whole of the original minutes
of said
meeting on file and of record insofar as the same relate to the
res
lution referred to in said extracts and to the other matters referred
to t
erein;
3. Said meeting was duly convened in conformity with all applicable
req
irements; a proper quorum was present throughout said meeting and the
resolution
hereinafter mentioned was duly proposed, considered, and adopted
in conformity
with applicable requirements; and all other requirements and
proceedings
incident to the proper adoption of said resolution have been duly
fulfilled,
carried out, .and otherwise observed;
4. He is duly authorized to execute this Certificate; and
5. The copy of the resolution annexed hereto entitled:
Res
lution of the South Bend Redevelopment Commission, Governing Body
of the
City of South Bend, Department of Redevelopment, Approving and
Providing
for the Execution of a Proposed Loan and Capital Grant Contract
Num
a,
y
Department
eyed Contract No. Indiana R -7 (LG), Between City of South Bend,
of Redevelopment and the United States of America, Pertaining
To a
Certain Project Designated Project No. Indiana R -7, and Establishing
i
a Pr
ject Expenditures Account With Respect To Said Project, and for Other
ses.
- 1 -
(Ceitificate of Recording Officer)
is a true, correct, and compared copy of the original resolution referred
to iTL said extracts and as finally adopted at said meeting and, to the extent
required by law, as thereafter duly signed or approved by the proper officer
or cfficers of the Local Public Agency and du,Y published, which resolution
is o file and of record.
WITNESS my hand and the seal of the Local Public Agency, this 4th
day of August, 1960.
t�
(SEA L)
4 j
4
JarneSgG. Louis, Secretary
South Bend Redevelopment Commission
2 _