HomeMy WebLinkAboutEconomic Development Revenue Bond - Series 1986 (Cole Associates, Inc. Project)Attest
RESOLUTION
NO. 2078 -93
Passed by the Common Council of the City of South Bend, Indiana,
October 11, l9 93
Clerk
Presented by me to the Mayor of the City of South Bend,
October
of Common Council.
City Clerk
Approved and signed by me I gZZ5 19173_
r
G.
Mayor
RESOLUTION NO. a 0 7,f- IVS
RESOLUTION OF THE SOUTH BEND COMMON COUNCIL
ECONOMIC DEVELOPMENT REVENUE BOND -- SERIES 1986.
(COLE ASSOCIATES, INC. PROJECT)
The City of South Bend ( "City ") Issued Its Economic Development Revenue
Bond, Series 1986 ( "Cole Associates, Inc. Project ") ( "Bond ") in the aggregate
principal amount of One Million Five Hundred Thousand Dollars ($1,500,000)
pursuant to a Trust Indenture dated as of May 16, 1986 from the City to St.
Joseph Bank and Trust Company n /k /a Society National Bank, Indiana
( "Trustee "). The City sold the Bond to St. Joseph Bank and Trust Company
n /k /a Society National Bank, Indiana ( "Bondholder "). The City loaned the
proceeds from the sale of the Bond to Cole Associates, Inc. ( "Company ")
pursuant to the provisions of a Loan Agreement, Mortgage and Security
Agreement ( "Loan Agreement ") dated as of May 16, 1986. To document and secure
the loan from the City, the Company executed and delivered to the City the
Series 1986 Note, the Loan Agreement and a Collateral Assignment of Leases and
Rents (collectively, the "Bond Loan Documents "). The City assigned the Bond
Loan Documents to the Trustee.
The Company entered Into an Agreement of Purchase and Sale of Assets
dated October 1, 1992 ( "Asset Purchase Agreement "). Under the terms of the
Asset Purchase Agreement, the purchaser ( "Purchaser ") purchased, among other
things, the right to use the name Cole Associates, Inc. and has adopted that
name. The Company formally changed Its name to CAI Development Corporation.
Pursuant to the Asset Purchase Agreement, Purchaser is to assume all the
obligations of the Company under the Bond Loan Documents and the Company is to
be released from all liability thereunder. The Company, the Purchaser, the
Trustee and the Bondholder have entered Into an Agreement ( "Agreement ")
providing for the assignment of the Bond Loan Documents to the Purchaser and
the release of all liability of the Company thereunder.
The consent of the South Bend Common Council to the Trustee's permitting
the Purchaser to assume the Company's obligations under the Bond Loan
Documents will be beneficial to all parties Including the City. It Is
therefore voted to adopt the following resolution:
"RESOLVED, the South Bend Common Council hereby
agrees that the Purchaser may assume the obligations
of the Company under the Bond Loan Documents and that Filed in Clerk's Office
the Company may be released from all liability
V,
thereunder. The Mayor is hereby authorized and
directed to sign the Agreement which contains these
terms."
This Resolution is adopted by the South Bend Common Council this
day of �r�„ 1993.
Member of C&fnon council
soc /dlz /resolution.4
PRESENTED g!g
NOT APPROVED
ADOPTED