Resolution 13-21 - Laserfiche WebLink

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Section 2.(Terms of Loan).That the Organization borrow$ 350, 000.00 and issue as evidence thereof Note in the form prescribed by the Government for the full principal amount of the loan.The note shall be signed by the President,attested by the Secretary and if necessary,have the corporate seal of the Organization affixed thereto,and shall bear interest from its date,which shall be the date of delivery,at a rate not to exceed 3.5000 percent per annum; the principal and interest shall be paid over a period of 15 years in accordance with the payment schedule set forth in the Note,until the principal and interest are fully paid except the final payment of the entire indebtedness,if not sooner paid,shall be due and payable 15 years from the date of the Note.Each payment shall be applied first to the payment of the accrued interest and second to the payment of the principal. Prepayments of any installment may be made in any amount at any time at the option of the Organization. Section 3.(Assignment and Pledge of Revenue).The indebtedness hereby authorized to be incurred,together with the interest thereon, shall be payable from the gross income and revenue to be derived from the operation of the Facility,a sufficient portion of which,to pay the principal and interest as and when the same shall become due,is hereby assigned,and pledged and shall be set aside for that purpose and this assignment and pledge shall extend to and include any assessments that may be levied pursuant to Section 5(d)hereof. Section 4.(Protection and Disposition of Funds).The City Clerk / Treasurer of the Organization shall be the custodian of all funds of the Organization.Funds may be deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of the United States.Any income from these accounts will be considered as revenues of the system. The City Clerk / Treasurer is hereby directed to establish the following accounts into which the current funds of the Organization,Note proceeds,the revenues from the Facility and any other income shall be deposited,which accounts shall be continually maintained,except as otherwise provided,so long as the indebtedness hereby authorized remains unpaid: (a)Construction Account. The proceeds of the Note,hereby authorized not disbursed contemporaneously with loan closing for incurred Facility costs,and at least the amount of$ 0.0 0 to be contributed by the Organization from the collection of initial connection fees,membership fees or contributions shall be deposited in an account designated as the Construction Account which shall be established as required by the Government. Withdrawals from the construction account shall be made only on checks signed by the City Clerk / Treasurer of the Organization as authorized by the Board from time to time,and with prior concurrence of the Government.At the option of the Government, the construction account may be established as a"supervised bank account".Amounts in the supervised bank account exceeding$100,000 shall be secured by the depository bank in advance in accordance with 31 C.F.R.part 22.Withdrawals from a supervised bank account shall be made only on checks signed by the City Clerk / Treasurer of the Organization and countersigned by an authorized official of the Government.The Organization's share of any insurance or liquidated damages and other monies paid by defaulting contractors or their sureties will be deposited in the Construction Account to assure completion of the Facility.When all construction costs have been paid in full,any balance remaining in the Construction Account may be applied on the loan or used for other authorized purposes that have been approved by the Government and the Construction Account shall be closed. (b)General Account. As soon as the Facility becomes revenue producing,all funds received shall be set aside in an account to be designated as the General Account Disbursements and transfers from this account shall be for:debt service,operations and maintenance,and transfers to an account designated as the Reserve Account.Monies deposited in the General Account shall be used only in the manner and order as follows: (1)Organizations making monthly Government debt service payments shall use the General Account for making such payments plus operating and maintenance expenses.Any remaining funds will be transferred from this account to the Reserve Account in accordance with (d)below. (2)Borrowers making other than monthly Government debt service payments shall first use the General Account to pay operating and maintenance expenses.Then other transfers from this account will be made in the following order:(i)To an account designated as the Debt Service Account will be made in accordance with(c)below,(ii)Transfers to the Reserve Account will be made in accordance with(d)below. (c)Debt Service Account Organizations making other than monthly debt service payments,shall transfer subject to income availability from the General Account to the Debt Service Account,a sum not to increase the next installment on the note. -2-