Loading...
HomeMy WebLinkAboutResolution 2802 Authorizing Intercap ICIP for FY90 --------- ----- - ------ .__...._. . un _. .. _.._.__n._..._ RESOLUTION NO. 2802 RESOLUTION AUTHORIZING PARTICIPATION IN THE BOARD OF INVESTMENTS INTERMEDIATE TERM CAPITAL PROGRAM BE IT RESOLVED BY THE City conunission (the Governing Body) : ARTICLE I. DETERMINATIONS AND DEFINITIONS. Secti on 1. 01. Definitions. The following terms will have the meanings indicated below for all purposes of this Resolution unless the context clearly requires otherwi se. Capi ta 1 i zed terms used in thi s Reso 1 uti on and not defi ned herein shall have the meanings set forth in the Contract. "Adjusted Interest Ratell means the rate of interest on the Bonds determined in accordance wi th the provi s ions of Section 3.03 of the Indenture. "Board" shall mean the Board of Investments and any successor to its functions. "Board Actll sha 11 mean Section 2-15-1805, Title 17, Chapter 5, Part 16, MCA, as amended. "Bonds" shall mean the Bonds issued by the Board pursuant to the Indenture to finance the Program. "Borrowerll shall mean the Borrower above named. "Borrower Act" shall mean (i) wi th respect to a county, Sections 7-5-2306 and 7-5-2307, M.C.A., ( i i ) wi th respect to a ci ty or town, Section 7-5-4306, M.C.A. , (iii) with respect to a school district, Section 20-9-471, M.C.A., (iv) with respect to a rural fire district, Section 7-33-2109, M.C.A., (v) with respect to a county water and sewer district, Secti ons 7-13-2217 (d) and 7-13-2221(3), M.C.A. , (vi) with respect to a hospital district, Section 7-34-2122, M.C.A. , and (vii) any other statute enacted, from time to time, that authorizes a Local Government Unit to borrow money on terms cons i stent wi th the Program. "Contract Resolutionll means this resolution or such other form of Resolution that the Issuer may approve and all amendments and supplements thereto. "Indenture" shall mean the Indenture of Trust dated July 14, 1988 between the Board and the Trustee pursuant to which the Bonds are to be issued and all supplements thereto. 2 _. ...__n. _._______ ..-.-.....--- -. ..-- -.-.- "Installment Purchase Contract" or "Contract" means the Installment Purchase Contract between the Borrower and the Board, including any amendment thereof or supplement thereto entered into in accordance with the provisions thereof and hereof, in substantially the form set forth by the Board of Investments. "loan II means the loans of money by the Board to the Borrower under the terms of the Contract pursuant to the Act and the Borrower Act and evidenced by the Note. "Loan Date" means the date of Closing a Loan. "Loan Rate" means the rate of interest on the loan which is initially 7.95 percent per annum and thereafter a rate equal to the Adjusted Interest Rate on the Bonds and up 1.5 percent per annum as necessary to pay Program Expenses. "Loca 1 Government Unit" shall mean a city, town, county or consolidated city-county, water and sewer districts, fire districts, county hospi ta 1 districts, and school districts organized and existing under the laws of the State and other governmental entities authorized by the Issuer to participate in the Program. "Note" or "Notesll means the note to be executed and deli vered by each Borrower pursuant to the Contract and the Indenture, in accordance with the provisions hereof and thereof, in substantially the form set forth in Exhibit C to the Contract, or in such form that may be approved by the Issuer. "Program" shall mean the Intermediate Term Capital Program of the Board pursuant to which the Board wi 11 issue and se 11 Bonds and use the proceeds to make loans to participating Local Government Units pursuant to Installment Purchase Contracts. "Project" shall mean those items of equipment, personal or real property improvements to be acquired, installed, financed under the Program as set forth on Exhibit A to the Contract. "Security Instrument" means a security agreement in sUbstantially the form set forth in Exhi bit H to the Contract, and, a Uniform Commercial Code financing statement, in a form acceptable to the Board and the Trustee granti ng a security interest in, or a 1 i en on, the property constituting the Project or other real or personal properties added to or substituted therefor. "Trustee" shall mean First Trust Company of Montana and its successors. Secti on 1. 02. Authority. The Borrower is authori zed by the Borrower Act to enter into an Installment Purchase Contract for the purpose of obtaining a loan to 3 finance or refinance the costs of acquiring or installing equipment and personal and real property improvements. Section 1.03. Execution of Contract and Delivery of Note. Pursuant to the Indenture and the Board Act, the Board has issued and sold the bonds and deposited a part of proceeds thereof to the Loan Fund he 1 d by the Trustee. The Board has, pursuant to the Commitment Agreement, agreed to make a Loan to the Borrower in the principal amount of $ 161,865 and upon the further terms and condi ti ons set forth herei n, in the Commi tment Agreement and in the Installment Purchase Contract. ARTICLE II. THE CONTRACT. Section 2.0l. Form. The Contract issued hereunder shall be prepared in substantially the form provided by the Board of Investments. Section 2.02. Terms. - (a) The Contract shall be dated as of the Loan Date, sha 11 be issued in registered form in the principal amount of $ 161,865 and shall constitute a valid and legally binding obligation of the Borrower. The ob 1 i gati on to repay the Loan shall be evidenced by a Note which shall be in the form of Exhibit C to the Contract. The Loan shall bear interest at the initial rate 7.95 percent per annum through February 28, 1988 and hereafter at the Adjusted Interest Rate, plus up to 1.5 percent per annum as necessary to pay the cost of administering the Program (the Program Expenses). All payments may be made by check or wire transfer to the Trustee at its pri nci pa 1 corporate trust offi ce. (b) The Loan Repayment Dates shall be February 15 and August 15 of each year with the first Loan Repayment Date determined as follows: ( i ) If the Loan Date is less than 120 calendar days preceding a Loan Repayment Date, the first Loan Repayment will be that Loan Repayment Date. but the first Loan Repayment shall be an interest only payment. (ii) If the Loan Date is less than 60 calendar days preceding a Loan Repayment Date. the first Loan Repayment Date shall be the next fo 11 owi ng Loan Repayment Date. and the Loan Repayment shall be an interest and principal payment. (iii) In all other instances the first Loan Repayment shall be due on the first Loan Repayment Date occurring after the Loan Date and shall consist of both a principal and interest payment. 4 . (c) The term of the Loan Repayments cannot extend over a period of five years, with the five year period commencing on the date of the first loan Repayment Date. (d) The principal amount of the Loan may be prepaid in whole or in part (if in part, in the amount of $50,000 or any integral multiple of $10,000 over $50,000) by paying the Prepayment Amount on February 15 and August 15 of each year, commenci ng February 15, 1988 or if the fifteenth is not a business day, on the next succeeding Business Day, provided that the Borrower has given written notice of its intention to prepay the Loan in whole or in part to the Trustee and the Issuer no later than 30 days prior to the designated prepayment date. (e) The Prepayment Amount shall be equal to the principal amount of the Loan outstanding, plus accrued interest thereon to the date of prepayment plus a prepayment penalty (expressed as a percentage of the principal amount of the loan outstanding) as follows: If Loan is Prepaid Penalty Prior to the first anniversary of the Loan Date 2.5% Prior to the second anniversary of the Loan Date 2.0% Prior to the third anniversary of the Loan Date 1.5% Prior to the fourth anniversary of the Loan Date 1.0% Prior to the fifth anniversary of the Loan Date .5% (f) Within 15 days following an Adj ustment Date, the Trustee sha 11 calculate the respective amounts of prinCipal and interest payable by each Borrower on and with respect to its Contract and Note for the subsequent August 15 and February 15 payments, and prepare and mai 1 by first class mail a statement therefor to the Borrower with a copy to the Issuer. Section 2.03. Use and Disbursement of the Proceeds. The proceeds of the Loan will be expended solely for the purposes set forth in Exhibit A to the Contract. The proceeds from the sale of the Note to the Board sha 11 remain in the Borrower's Account pending disbursement at the request of the Borrower to pay the budgeted expenditures in anticipation of which the Note was issued. Proceeds of the Loan held by the Borrower pending expenditure shall not be invested in interest bearing obligations, unless such obligations are: (a) tax 5 ------.-.--.-- n.___..____.__.._._ . . exempt obligations; (b) State or local government securities (SLGs), or (c) tax-exempt money market obligations. Requests for disbursement of the Loan shall be made in writing to the Trustee on a form approved by the Trustee. Prior to the closing of the Loan and the first disbursement, the Borrower shall have delivered to the Trustee a certified copy of this Resolution, the executed Contract and Note in form satisfactory to the Borrower1s Counsel and the Board1s Bond Counsel and such other certificates, documents and opinions as set forth in the Contract or as the Board or Trustee may require. Section 2.04. Payment and Security for the Note. In consideration of the making of the Loan to the Borrower by the Board, the provisions of this Resolution shall be a part of the contract of the Borrower with the Board. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the Borrower shall be for the benefit of the Board. The Contract and Note shall constitute a valid and legally binding obligation of the Borrower and the principal of and interest on the Loan shall be payable from the general fund of the Borrower, and any other money and funds of the Borrower otherwi se legally available therefor. The repayment of the Loan shall be secured by a security interest in the Project being financed. The Borrower shall enforce its rights to receive and collect all such taxes and revenues to insure the prompt payment of the Borrower obligations hereunder. Section 2.05. Covenant to Levy Taxes. The Borrower acknowledges, pursuant to the Contract that in order to meet its obligations under the Contract, it will: (a) budget, 1 evy taxes for and appropriate in each fiscal year during the term of the Contract an amount sufficient to pay the principal of and interest on the Loan; (b) adjust rates and charges of any revenue producing enterprises, as may be required to pay the principal and interest thereon, if such revenues are to be used to pay the costs of the bonds. ART! CLE II I. CERTIFICATIONS, EXECUTION AND DELIVERY. Secti on 3. Ol. Authentication of Transcript. The City Manaqer and Clerk of the Commission , and other officers of the Borrower, are authorized and directed to prepare and furnish to the Board and to attorneys approving the va 1 i dity of the Bonds, certified copies of th is resolution and all other resolutions and acti ons of the Borrower and of said offi cers relating to the Comnitment Agreement, the Contract, the Note, the Securi ty Agreement and certificates as to all other proceedi ngs and records of the Borrower which are reasonably required to evidence the validity and marketability of the Note. All such certified copies and 6 n_____ . . . . . . certificates shall be deemed the representati ons and reci ta 1 s of the Borrower as to the correctness of the statements contained therein. Section 3.02. Legal Opinion. The attorney to the Borrower is hereby authorized and directed to deliver to the Board at the time of Closing of the Loan his or her opinion regarding the Loan, the Contract, the Note and this Resolution is substantially in the form of the opinion set for as Exhibit D to the Contract. Section 3.03. Execution. The Contract, Note, Security Agreement and any other document required to close the Loan shall be executed in the name of the Borrower and shall be executed on behalf of the Borrower by the signatures of the [Mayor or City Manager and City Treasurer or City Finance Director (City)] [Chairman of Board of County Commissioners. County Treasurer and County Clerk and Recorder (County)][Chairperson of , the Board of Trustees and Clerk of the District (School District)] [Chairperson of the Speci al District and District Clerk (Special \. District)l (Please insert the appropriate names and titles) City Manaqer and the Administrative Servo Dif.and the seal of the Borrower affixed thereto. PASSED AND APPROVED by the City Commission of the City of Bozeman this 25th day of June , 1990 . Attest: By ~ 01 ~ Its Clerk of the Commission .., ..a 7 ---.----- . . . . Member Goehrung introduced the above resolution and moved its acceptance. Member Frost seconded the motion and the following members voted in favor thereof: Commissioner Goehrung, Commissioner Frost, Commissioner Knapp and Mayor Pro Tempore Swanson the following members voted against the same: None Absent: Mayor Hawks 8 . . CERTIFICATE OF MINUTES RELATING TO RESOLUTION NO. 2802 Issuer: City of Bozeman, Montana Kind, date, time and place of meeting: A regular meeting held on June 25 , 19~ at 3:30 o'clock E,..m. in Bozeman , Montana. Members present: Mayor Pro Tempore Swanson, Commissioner Goehrung, Commissioner Frost and Commissioner Knapp Members absent: Mayor Hawks Documents attached: Minutes of said meeting (pages): RESOLUTION NO. 2802 RESOLUTION AUTHOR I ZI NG PARTICIPATION IN THE BOARD OF INVESTMENTS INTERMEDIATE TERM CAPITAL PROGRAM I, the undersigned, being the fully qualified and acting recording officer of the public bOdy issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the public body in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members i nd i cated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this __ 25th day of June , 19~. (J~~ dll~ Clerk of the Commission Rev. 1/90