HomeMy WebLinkAboutCity Council Resolutions (R-76-130)-09/21/1976
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A RESOLUTION AND ORDER by the governing body of the
City of Colleyville, Texas, making provision for
certain securities to be deposited in escrow,
pending their delivery to the purchaser; prescrib-
ing the terms and conditions of the escrow agree-
ment and resolving other matters in connection
therewith; cancelling a prior escrow agreement
relating to such securities; and providing the
effective date.
WHEREAS, the governing body of this City has heretofore
authorized the issuance of certain securities known as "CITY OF
COLLEYVILLE, TEXAS, WpTERWORKS AND SEWER SYSTEM REVENUE BONDS,
SERIES 1975-A," Liated July 1, 1975, (hereafter referred to as
"special ob liga tions" or "se ,~uri tiE' ,;"), and
WHEREAS, pursuant to a loan agreement with the United States
Department of Agl"icul ture, Farmer; Home Administration, said
Department has agreed to purchase all of the above described
securities at a rate of 5% per annum; and
WHEREAS, the said Department has provided in the loan agree-
ment that it would mal<e a loan or advance against the proceeds of
such securities as funds were required by the City, and all of
such securities have heretofore been awarded and sold to the
United States of America, Farmers Home Administration, United
Sta tes Departmen t~ of Agriculture, and that it is now proper to
provide a procedure whereby the said securities will be available
for delivery to the purchaser to cover the cost of the project
coming due within the thirty-day period following the delivery of
securities to said purchaser, it being understood that multiple
advances or closings will be provided so as to enable such purchas~r
to restrict its acceptance of the ~ecurities to those which are
actually required to accomplish the purposes indicated, the same
being in the interest of the City since interest on the bonds
will accrue only after they are delivered to the purchaser: and
WHEREAS, by reasUh of a change in the "Registrar" for the
securities, the City was required to provide for the re-issuance
of the securities and provide for their delivery to take place
at THE FIRST NATIONAL BANK OF FORT WORTH, Fort Worth, Texas; and
WHEREAS, it is now proper for this Council to provide for
the execution of an escrow agreement with THE FIRST NATIONAL BANK
OF FORT WORTH, Fort Worth, Texas, and cancel the prior escrow
agreement relating to the delivery of the securities with the
FIRST NATIONAL BANK, Colleyville, Texas: therefore,
BE IT RESOLVED N~D ORDERED BY THE CITY COUNCIL OF THE CITY OF!
COLLEYVILLE, TEXAS:
SECTION,l: That all of the recitals and findings made in
the preamble of this resolution and order are found to be true,
are brought forward and adopted as a part of this resolution and
order, and as a part of the judgment of this governing body.
SECTION 2: That the Mayor of the City is hereby authorized
and instructed to cause a complete transcript of proceedings
relating to the re-issuance of the securities described in the ,
preamble hereof to be submitted to the Attorney General of Texas !
and upon approval of the proceedings and securities by the Attorney
General to cause the same to be registered by the Comptroller of .
Public Accounts of the State of Texas and then transmitted by First
Class Registered Mail to The First National Bank of Fort Worth,
Fort Worth, Texas.
SECTION 3: That said Bank shall forthwith hold all of the
securities so received from the Comtroller of Public Accounts in
escrow and shall release the same from escrow only in accordance
with the provisions of this resolution and order.
SECTION 4: That no securities shall be delivered by the
Bank to the purchaser until the Bank has been provided with a
written instrument signed by the County Supervisor and the Mayor
which describes the securities to then be delivered, and such
written instrument shall specify it appears the funds to be
received by the City will be required for expenditure within the
thirty-day period following the delivery of such securities. The
following procedure shall be followed:
(1) The date of the registration appearing on the back
of each special obligation shall be completed to show
the date of registration, the same as the date payment
is made for the particular obligation, the name of the
registered owner (United States of America, Farmers Home
Administration), and the Registrar's authorized signature
shall be completed.
(2) Three copies of the Treasurer's receipt showing payment
for the obligations shall be completed, executed and
immediately released and mailed to the firm of Dumas,
Huguenin, Boothman and Morrow, 1212 United National Bank
Building, Dallas, Texas 75201.
(3) The obligations for which payment is to be made at
that time shall then be delivered to the County Supervisor
upon the receipt of the price of par (no accrued interest
since the proceedings authorizing the issuance of the
special obligations provide interest will begin with the
date of the delivery of the special obligations).
(4) Immediately following the delivery of any securities,
the Bank shall transfer the amount received from the purchase
to the City's depository bank to the credit of the special
construction account created and established for the
payment of costs incurred in connection with the project
for which the securities were issued to finance.
No securities shall be delivered if the person holding the
office of Mayor, City Secretary or City Treasurer is different than,
hereinafter set forth unless the bank has specific written author- '
ity to deliver the same from the firm of Dumas, Huguenin, Boothman
and Morrow, 1212 United National Bank Building, Dallas, Texas
752010
SECTION 5: That any escrow agreement or this resolution may
be modifiea upon the approval of the governing body of the City,
the County Supervisor, and the firm of Dumas, Huguenin, Boothman
and Morrow, such approval to be in writing and filed with the
Bank c
SECTION 6: That as used in this resolution and order, the
terms'referfo the following persons or institutions:
(1) City - City of Co11eyville, Texas;
(2) Depository Bank - First National Bank. Co11eyvi11e. Texas,;
(3) Bank - Registrar - The First National Bank of Fort
Worth, Fort Worth, Texas;
(4) Mayor - John A. Andrews;
(5) City Secretary or City Clerk - (Mrs.) Julie R. Kearley;
(6) City Treasurer - (Mrs.) Julie R. Kearley;
(7) Connty Supervisor - Mr. Bobby J. Sparkman
SECTION 7: That the Escrow Agreement to be executed pursuant
to this resolution and order shall be substantially in the form
which is attached hereto as Exhibit A and made a part hereof for
all purposes.
SECTION 8: That the prior escrow agreement relating to the
LecuritiesSY--and between the City and the First National Bank.
Colleyville, Texas is hereby cancelled.
SECTION 9: That this resolution shall be effective from
and aller thedate of .ts passage.
PASSED AND APPROVED. this the 21st day of September. 1976.
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ESCROW AGREEMENT
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THE STATE OF TEXAS
COUNTY OF TARRANT
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KNOW ALL MEN BY THESE PRESENTS:
THIS AGREEMENT is made and entered into as of the date of
execution hereinafter set forth by and between the City of Colley-
ville, Texas, hereinafter called "City" and The First National
Bank of Fort Worth, Fort Worth, Texas, hereinafter called "Bank:.
WIT N E SSE T H
WHEREAS, the City, by resolution and order, has provided for
the execution of an escrow agreement whereby certain of its
securities would be deposited with the Bank for delivery to the
ultimaLe purchaser, a copy of such resolution and order being
attached hereto and made a part of this escrow agreement for all
purposes; and,
WHEREAS, the Bank, has and does hereby agree to all of the
terms and conditions ~;et out in this instrument and in the said
resolution and order; therefore,
BE IT AGREED AND UNDERSTOOD:
The City shall furnish the Bank with the showings required by
the provisions of the resolution and order mentioned in the
preamble hereofo The Bank agrees that it will deliver securities
and accept payment for them in accordance with the resolution and
order.
Proceeds from the sale of the securities, when received, will
be transferred and credited to a special construction account with
the City's depository bank (First National Bank, Colleyville,
Texas) in accordance with the directions received from the Hayor
and the County Supervisor.
IT IS FURTHER mutually agreed that in the event any dispute
shall arise as to whether the City has complied with the terms and
conditions of this agreement, the Bank shall not be required at
its own per~.l to settle such dispute but may tender all of the
securities and cash them in its possession which may be in dispute
into a court~ of competent jurisdiction (in the county in which the
office of the Bank is situated) by bill or interpleader or other-
wise, making the City and other parties at interest known to the
Bank parties to such suit. Thereupon the Bank shall stand
discharge from any or all liability hereunder and shall be entitled
to receive its costs including a reasonable attorney's fee, or the
Bank may take such other action as it deems appropriate.
IN WITNESS WHEREOF, the City and the Bank have caused this
agreement to be executed by the respective officers and officials
duly authorized to sign on their behalf, as of the 21st day of
September, 1976.
CITY O~~L~ILLE. ~XA)Y
By: C U,- CC~
/ Mayor
(City Seal)
THE FIRST NATIONAL BANK OF FORT
WORTH, Fort Worth, Texas
BY~~~,/? ~
(Authorized Officer)
TRUST OFFICER
ATT~S,,\T: //
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(Bank Seal)