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Home My WebLink AboutORD 99-015 ORDINANCE NO. ORDINANCE AUTHORIZING PROMISSORY NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF $11,000,000 TOGETHER WITH THE CONTRACT FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED, 42 U.S.C., SECTION 5308, IN CONNECTION THEREWITH THE STATE OF TEXAS § COUNTY OF JEFFERSON § THE CITY OF BEAUMONT § WHEREAS, The City of Beaumont, Texas (the "City") has adopted a community development program in accordance with Chapter 373 of the Texas Local Government Code, and the City is desirous of issuing notes pursuant to Section 373.005 of the Texas Local Government Code to implement the program for the acquisition, construction and improvement or rehabilitation of privately owned buildings or other improvements in an approved community development program that the City has determined to be a public program, and the City is also the recipient of federal funds which may be used for these purposes in accordance with the Housing and Community Development Act of 1974, as amended, 42 U.S.C. Section 5308, as managed by the United States Department of Housing and Urban Development; and WHEREAS, the City deems it advisable to authorize, issue and sell the Notes hereinafter authorized in the aggregate principal amount of $11,000,000 for these purposes; Now, Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: 1. Findings and Determinations. The City Council hereby finds and determines that the facts and recitations contained in the preamble of this Ordinance are true and correct. 1 1WUTUMNICIFOX DOCUMENTSIBONDIBEAUMONT SECTION 108 FINANCING 199910RDINANCE.DOC 2. Authorization. The City is hereby authorized to execute and deliver the following described promissory notes (the "Notes") in the total aggregate principal amount of $11,000,000, true and correct copies of which Notes are attached hereto as Exhibit "A" and incorporated herein by reference: Note Number Maturity Date Principal Amount B-97-MC-48-0003 August 1, 2002 $190,000 B-97-MC-48-0003 August 1, 2003 $210,000 B-97-MC-48-0003 August 1, 2004 $290,000 B-97-MC-48-0003 August 1, 2005 $360,000 B-97-MC-48-0003 August 1, 2006 $390,000 B-97-MC-48-0003 August 1, 2007 $420,000 B-97-MC-48-0003 August 1, 2008 $450,000 B-97-MC-48-0003 August 1, 2009 $560,000 B-97-MC-48-0003 August 1, 2010 $600,000 B-97-MC-48-0003 August 1, 2011 $650,000 B-97-MC-48-0003 August 1, 2012 $700,000 B-97-MC-48-0003 August 1, 2013 $750,000 B-97-MC-48-0003 August 1, 2014 $920,000 B-97-MC-48-0003 August 1, 2015 $980,000 B-97-MC-48-0003 August 1, 2016 $1,060,000 B-97-MC-48-0003 August 1, 2017 $1,100,000 B-97-MC-48-0003 August 1, 2018 $1,370,000 3. Contract for Loan Guarantee Assistance. The City is hereby authorized to enter into and execute that certain Contract for Loan Guarantee Assistance (the "Contract") between the City, as Borrower, and the Secretary of Housing and Urban Development (the "Secretary"), as the Guarantor, in reference to the payment of the Notes, a true and correct copy of which Contract is attached hereto as Exhibit "B" and incorporated herein by reference. The City is further authorized to perform all of its obligations under the Contract and to enter into, execute and deliver such documents and instruments that are required under the terms of the Contract. The City shall use the proceeds of the Notes to finance the projects authorized under the terms of the Contract and the City is authorized to enter into any such loan agreements, security agreements, mortgages and other agreements and instruments as the City determines to be appropriate for such purpose. 4. Replacement Notes. In accordance with the terms of the Contract, the City is authorized to execute and delivery new notes (the "Replacement Notes") in exchange for the Notes, repayable in principal installments at time and in amounts identical to the maturities of all amounts advanced under the Notes prior to the date of exchange, unless another 2 %IAUTUMNICIFOX DOCUMENTS\BONDIBEAUMONT SECTION 108 FINANCING 19991ORDINANCE.DOC schedule for repayment and/or a different rate of interest is agreed to by the City and the Secretary and in that case the new agreed repayment schedule and/or new agreed interest rate shall apply and the City is hereby authorized to agree to any such new repayment schedule and/or new interest rate; provided, however, the new agreed repayment schedule and/or new agreed interest rate shall not exceed the net effective interest rate payable on public securities within the meaning of Tex. Rev. Civ. Stat. Ann. Article 717k-2 (the "Texas Maximum Rate"). The City is further authorized, upon receipt of written notice from the Secretary, to execute and deliver to the Secretary the Replacement Notes and a new Contract for Loan Guarantee Assistance containing such modifications as deemed necessary by the Secretary to permit issuance of trust certificates or other obligations backed by a pool composed of the Replacement Notes (and similar notes issued by other Section 108 borrowers); provided, however, the interest rate under such Replacement Notes shall not exceed the Texas Maximum Rate. 5. Fiscal Agency Agreement. The City is hereby authorized to enter into and execute and to perform all of its obligations under that certain Fiscal Agency Agreement between the City, as Borrower, and Chase Manhattan Bank, as Fiscal Agent, a true and correct copy of which Agreement is attached hereto as Exhibit "C" and incorporated herein by reference. 6. Execution of Notes. The Notes shall be signed by the Mayor and countersigned by the City Clerk or Deputy City Clerk, by their manual signatures, and the official seal of the City shall be impressed or thereon. If any officer of the City whose manual signature shall appear on the Notes shall cease to be such officer before the authentication of such Notes or before the delivery of such Notes, such manual signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. 7. Approval by Attorney General; Registration by Comptroller. The Notes shall be delivered to the Attorney General of Texas for approval and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration certificate of the Comptroller of Public Accounts shall be attached or affixed to the Notes. 8. Further Proceedings. After the Notes to shall have been executed, it shall be the duty of the Mayor and other appropriate officials and agents of the City to deliver the Notes and all pertinent records and proceedings to the Attorney General of the State of Texas, for examination and approval. The Mayor, the City Clerk, the Deputy City Clerk, the City Manager and all other officers and officials of the City are hereby directed and authorized to do any and all things necessary in order to accomplish the issuance of the Notes and the securing of same all in accordance with the Contract and the provisions of applicable law. 3 MAUTUMNICTOX DOCUMENTSWISI BEAUMONT SECTION 108 FINANCING 19MORDINANCE.DOC 9. Open Meeting. It is hereby officially found and determined that the meeting at which this Ordinance was adopted was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code. 10. Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Notes. [The remainder of this page has intentionally been left blank.] 4 %%AUTUMMCTOX DOCUMENTS%BONDkBEAUMONT SECTION 108 FINANCING 1999%ORDINANCE.DOC PASSED AND APPROVED this 23rd day of March, 1999. Mayor The City of Beaumont ATTEST: City Clerk The City of Beaumont �,i19+Jf0 ��,1 (SEAL) ;4 5 MUTUMN\CXFOX DOCUMENTWONWEAUMONT SECTION 108 FINANCING 1999%ORDINANCE.DOC