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HomeMy WebLinkAboutCity Council Resolutions (R-75-099)-01/28/1975 RESOLUTION R-75-99 RESOLUTION AND ORDER by the governing body of the City of Co1leyville, Texas, making provision for certain securities to be deposited in escrow, pending their delivery to the purchaser; prescribing the terms and conditions of the escrow agreement and resolving other matters in connection therewith: and providing the effective date. WH.EREAS, the governing body of this City has heretofore authorized the issuance of certain securities known as "CITY OF COLLEYVILLE, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1975," dated January 1, 1975, and "CITY OF COLLEYVILLE, TEXAS, WATERWORKS REVENUE CERTIFICATES OF OBLIGATION, SERIES 1975)" dated January 1) 1975, (hereafter referred to collectively as "special obligations" or "securities"), and WHEREAS, pursuant to a loan agreement with the United States Department of Agriculture, Farmers 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 agreement that it would make 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 States Department 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 purchaser to restrict its acceptance of the securities 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: now, therefore, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: SECTION 1: 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: The Mayor of the City is hereby authorized and instructed to cause a complete transcript of proceedings relating to the authorization 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 City's depository bank. SECTION 3: The City's depository bank shall forth- with noTcraTl ~-of the securities so received from the Comptroller 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: 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 obligation registrar's authorized signature shall be completed; the obligation registrar is the person who holds the offfice of City Secretary or City Clerk, as the case may be, as of the date payment is made for the special obligations. (2) With respect to the General Obligation Bonds, the City Secretary shall stamp on the initial coupon the amount of interest to be due on January 1 next follow- ing the delivery of the bonds as prescribed by Section 11 of the ordinance authorizing such bonds. Interest shall be calculated by the City Secretary on the basis of five per cent (5%) per annum, three hundred sixty (360) day basis with interest from date of delivery to January 1 next following. (3) 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 Kirby Building, Dallas, Texas 75201. (4) The obligations for which payment is to be made at that time shall then be delivered to the County Super- visor 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). (5) The check or Treasury warrants received as payment for the obligations shall forthwith be deposited by the Bank into the supervised construction account. No securities shall be delivered if the person holding the office of Mayor, City Secretary, City Clerk or City Treasurer is different than hereinafter set forth unless the bank has specific written authority to deliver the same from the firm of Dumas, Huguenin, Boothman and Morrow, 1212 Kirby Building, Dallas, Texas 75201. As used in this Section, the term for "securities" and the term "obligations" mean the certificates of obligation and the general obligation bonds mentioned in the preamble. The term II special obligation" means only the revenue certifi- cates. SECTION 5: Any escrow agreement or this resolution may be modified upon the approval of the governing body of the City, the County Supervisor, and the firm of Dumas, ".'-'--..;......;.".....~_.,"-_...~.-'--'---_..,,'~""-'-~.,'-"""""'"",-_.""-,.,"-'-~'-~"-;..,,~--'"'"""'.~.... ~ -.. -'-- ~ "-_.._-~_...".,---, ..~ -- _.. .- Huguenin, Boothman and Horrow, such approval to be in writing and filed with the Bank. SECTION 6: As used in this resolution and order, the terms refer to the following persons or institutions: (1) City - City of Colleyville, Texa8; (2) Depo&itory Bank - First National Bank, Colleyville, Texas; (3) Bank - the Depository Bank; (4) Mayor - John A. Andrews; (5) City Secretary or City Clerk - Ms. M. Louise Ramey; (6) City Treasurer - Ms. M. Louise Ramey; (7) County Supervisor - SECTION 7: 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. PASSED AND APPROVED, this the 28th day of January, 1975. ATTEST: _PtcK~~- GJ,ty Secretary, City 0 Colleyv le, Texas (City Seal) ESCROW AGREEMENT THE STATE OF TEXAS COUNTY OF TARRANT 1 1 1 KNOW ALL MEN BY THESE PRESENTS: THIS AGREEMENT is made and entered into as of the date of execution hereinafter set forth by ~nd between the City of Colleyville, Texas, hereinafter called "City" and First National Bank, Colleyville, 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 ultimate 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, as the depository bank of the City for the purposes of this deposit, has and does agree to all of the terms and conditions set 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 hereof. 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 deposited in a supervised bank account 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 BDnk shall not be required at its own peril 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 of interpleader or otherwise, making the City and other parties at interest known to the Bank parties to such suit. Thereupon the Bank shall stand discharged 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. - .___._.__ _c.___"~._,.,~~._~"~.. -'-_~~_~' '~--t'--' _, , _'u._, 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 day of 1975. ATTEST: mc>(~A _ c...~ ~ity Secretary ~ (City Seal) ATTEST: Cas (Bank Seal) CITY OF COLLEYVILLE, TEXAS ~ L:f' By: / -/" ~ 0 ,fi d4'~~ / Mayor FIRST NATIONAL BANK, COLLEYVILLE, 4S . B. ~_~ -A':~efi&(fr't- '~"'-;";' .~,.... ""~~--""""" i Jlt i.", "' I I