The URL can be used to link to this page

Home My WebLink About8496-94 Authorizing City of South Bend Amend Documents Economic Development Revenue Bonds Series 1985 ORDINANCE No. 8496-94 Passed by the Common Council of the City of South Bend, Indiana. April 11, 94 19 Attest: City Clerk IRENE K. GAMMON Attest: .2 President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 12, 94 19 City Clerk IRENE K. GAMMON Approved and sired by me 19.4T Mayor ORDINANCE NO. "17 - I ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO AMEND DOCUMENTS RELATING TO ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985, INLAND DISTRIBUTING CORPORATION PROJECT, AND APPROVING AND AUTHORIZING OTHER ACTION IN RESPECT THERETO RECITALS. The City of South Bend ("Issuer") has heretofore issued its $625,000.00 Economic Development Revenue Bonds, Series 1985, Inland Distributing Corporation Project (the "Bonds"), dated May 2, 1985, to finance certain costs of the Inland Distributing Corporation Project (the "Project") as described in the Loan Agreement dated as of April 1, 1985 (the "Loan Agreement"). Inland Distributing Corporation, the "Borrower" as defined in the Loan Agreement, Sturgis Iron & Metal Co. Inc., a Michigan corporation (the "Company"), the successor Borrower, and Society National Bank, Indiana (the "Bondholder") have requested the Issuer to amend the Loan Agreement in order to transfer the Project and to provide for certain waivers of rights by the Company in the event of bankruptcy. Section 8.6 of the Loan Agreement permits the Loan Agreement to be amended upon the written consent of the Bondholder, and said consent has been granted by the Bondholder. Now, therefore, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: Section 1. The First Amendment to Loan Agreement is hereby approved and shall be inserted in the minutes of the Common Council and kept on file with the City Clerk. -1- Section 2. The Mayor and the City Clerk of the Issuer are authorized and directed to execute the First Amendment to Loan Agreement and all other documents related thereto on behalf of the Issuer. Section 3. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. e•-r of the Com "`council D:\KJB\STURGIS\OILDINANC Filed In Clerk's Office 1st READ4N: ,'/-- 9,<A APR U 6 1994 PUBLIC FiE \:.1 S/ //- 9 41 3rd READN y —//— 97" `' IRENE GAM OW NOT APPROVM CITY CLERK,So.SEM,IN. REFERRED PASSED --// -94e FIRST AMENDMENT TO LOAN AGREEMENT The parties to this First Amendment to Loan Agreement ("Amendment") dated as of , 1994, by and among the City of South Bend, a municipal corporation organized under the laws of the State of Indiana(the "Issuer"), Sturgis Iron&Metal Co. Inc., a Michigan corporation ("Sturgis"), Society National Bank, Indiana (the "Bondholder"), Society National Bank, Indiana, as Trustee (the "Trustee"), and Inland Distributing Corporation, an Indiana corporation ("Inland"), agree as follows: RECITALS. The Issuer and Inland entered into a Loan Agreement dated as of April 1, 1985 (the "Loan Agreement") in order to provide for the issuance of and security for the Issuer's Economic Development Revenue Bonds, Series 1985 (Inland Distributing Corporation Project) in the aggregate principal amount of$625,000.00 (the "Bond"). Sturgis is the successor in interest to Inland, the "Borrower" as defined in the Loan Agreement . The interest of the Issuer under the Loan Agreement was assigned to the Trustee pursuant to an Assignment dated May 2, 1985. Sturgis, Inland, and the Bondholder have entered into this Amendment in order to amend the Loan Agreement to transfer the "Project" as defined in the Loan Agreement from Inland to Sturgis. Section 1. Definitions and References. All capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement. All reference to the Loan Agreement shall mean the Loan Agreement as amended by this Amendment. Section 2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows: A new Section 6.4 shall be added to the Loan Agreement, to read as follows: Section 6.4 If the Borrower files a voluntary petition for relief under the United States Bankruptcy Code, 11 U.S.C. section 101 et seq. ("Bankruptcy Code"), or an order for relief is otherwise entered in a bankruptcy case filed by the Borrower or initiated against the Borrower, the Borrower waives any and all objections to and otherwise agrees not to oppose any motion filed by the Trustee for relief from the automatic stay pursuant to section 362(c) or (d) of the Bankruptcy Code. This provision shall be binding upon the Borrower as a debtor-in-possession and upon any trustee appointed by a Bankruptcy Court of competent jurisdiction. Section 3. Release of Inland's Obligations. Inland shall be released from its obligations under the Loan Agreement, the "Series 1985 Note" as defined in the Loan Agreement, and Sturgis shall hereafter be obligated as the successor to Inland under the Loan Agreement, this Amendment, the Series 1985 Note, the Mortgage from Inland to the Trustee dated and recorded May 2, 1985, as Instrument No. 85 8023 in St. Joseph County, Indiana, and all related documents. Section 4. Issuer's Authorization. The Mayor and Clerk of the City of South Bend, Indiana, are hereby authorized to act on behalf of the City of South Bend, Indiana, with respect to all actions contemplated in this Amendment, and to execute all documents related to this First Amendment to Loan Agreement. ISSUER CITY OF SOUTH BEND, INDIANA By: Joseph E. Kernan, Mayor Attest: Irene K. Gammon, Clerk STURGIS IRON & METAL CO. INC. By: Attest: TRUSTEE SOCIETY NATIONAL BANK, INDIANA By: BONDHOLDER SOCIETY NATIONAL BANK, INDIANA By: -2- INLAND DISTRIBUTING CORPORATION By: Attest: This instrument prepared by Kevin J. Butler, BUTLER AND SIMERI P.C., Post Office Box 1438, South Bend, Indiana 46624-1438. (219) 233-3303. D:\KJB\STURGIS\LOANAGR.AMD -3- BUTLER AND SIMERI P.C. ATTORNEYS AT LAW ONE MICHIANA SQUARE JOSEPH V. SIMERI 100 EAST WAYNE STREET, SUITE 300 KEVIN J. BUTLER POST OFFICE Box 1438 PATRICK J. O'CONNELL SOUTH BEND, INDIANA 46624 MICHAEL J. STEPANEK, JR. TELEPHONE(219)233-3303 OF COUNSEL FACSIMILE(219)284-2397 April 6, 1994 South Bend Common Council c/o South Bend City Clerk 4th Floor, County-City Building South Bend, IN 46601 Dear Members of the Common Council: Enclosed is a proposed Ordinance which, if approved, will authorize the First Amendment to the Loan Agreement for the City of South Bend Economic Development Revenue Series 1985 Bond, Inland Distributing Corporation Project. We ask that this Ordinance be placed on the Council agenda for its meeting on Monday, April 11, 1994. Also enclosed is a copy of the First Amendment to Loan Agreement. We will ask the Common Council at its meeting on Monday, April 11, 1994, to suspend its rules and take final action on this Ordinance so that the transfer of the Project can be effected immediately after enactment. Thank you for your consideration of this matter. Very truly yours, la*11 Kevin J. Butler KJB/cjp Enclosures cc: South Bend Economic Development Commission D:\KJB\STURGIS\COUNCIL.LTR fknmmi#tier ittport ail the (funannn QIounril of tip Qlit*J of'nutl1 rich: Your Committee of the Whole to whom was referred - _- BILL NO. 44-94 SECOND READING ON A BILL AUTHORIZING THE CITY OF SOUTH BEND TO AMEND DOCUMENTS RELATING TO ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985, INLAND DISTRIBUTING CORPORATION PROJECT, AND APPROVING AND AUTHORIZING OTHER ACTION IN RESPECT THERETO. • Respectfully report that they have examined the matter and that in their opinion This bill has been recommended to the Council favorable. Roland Kelly Chairman