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HomeMy WebLinkAbout6151RESOLUTION NO. 6151 A RESOLUTION APPROVING A CONTRACT FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT BETWEEN THE CITY OF PUEBLO, COLORADO, AND THE SECRE- TARY OF HOUSING AND URBAN DEVELOPMENT AND THE PROMISSORY NOTE RELATING THERETO, AND AUTHOR- IZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE AND DELIVER SAID CONTRACT FOR LOAN GUARANTEE ASSISTANCE AND PROMISSORY NOTE WHEREAS, the City's request for loan guarantee assistance under Section 108 of the Housing and Community Development Act of 1974, as amended, (the "Act ") consisting of the guarantee of a Promissory Note in the principal amount of $1,165,000, plus interest, to finance the acquisition of real property and related activities as described in application B- 87 -MC -08 -0007 (the Fountain Creek Flood Control Project) has been approved by the U.S. Department of Housing and Urban Development ( "HUD "), and WHEREAS, a Contract For Loan Guarantee Assistance and Promis- sory Note must be executed pursuant to the loan guarantee commit- ment from HUD issued under Section 108 of the Act, and WHEREAS, the Promissory Note will be payable to Citibank, N.A. to provide interim financing and the City's liability for amounts due pursuant to the terms of the Promissory Note will be limited to the security pledged in paragraph 5 of the Contract For Loan Guarantee Assistance consisting of all grants which have been made or for which the City will become eligible under Section 106 of Title 1 of the Act and program income including interest derived from the disposition by sale or lease of any real property to the extent acquired or rehabilitated with the guarantee loan funds, and WHEREAS, the execution and delivery by the City of the Contract For Loan Guarantee Assistance and Promissory Note would be in the best interest of the City and would promote the safety, health and welfare of the citizens of the City of Pueblo; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The Contract For Loan Guarantee Assistance under Section 108 of the Housing And Community Development Act of 1974, as amended (42 U.S.C. §5308) between the City of Pueblo, a Municipal Corporation and the Secretary of Housing and Urban Development, and Attachment 1 (Custodial Account) and Attachment 2 (Custodial Investment Account) (herein collectively the "Contract ") and the Promissory Note in the Principal Amount of $1,165,000 bearing Note No. B- 87 -MC -08 -0007 (the "Note "), copies of which are on file in the office of the City Clerk and incorporated herein as if set out herein in full, having been approved as to form by the City Attorney, are hereby approved. SECTION 2 The President of the City Council is hereby authorized and directed to execute and deliver the Contract and the Note for and on behalf of the City and the City Clerk is directed to attest same and affix the seal of the City thereto. INTRODUCED: February 22, 1988 By MICHA A. OCCHIATO Councilman -2- ATTEST: APPROVED: city( Clerk Pis dent of'the City Council -3- CONTRACT FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED, 42 U.S.C. S5308 Date of Contract This Contract for Loan Guarantee Assistance ( "Contract ") is entered into between the City of Pueblo Colorado as Borrower (the "Borrower" ) and the Secretary of Housing and Urban Development ( "Secretary ") as guarantor for the guarantee made pursuant to Section 108 of Title I of the Housing and Community Development Act of 1974, as amended ( "Title I and to 24 C.F.R. Part 570, Subpart M, of Note B- 87 -MC -08 -0007 , all notes substituted as provided in the original Note, and any additional notes issued pursuant to the loan guarantee commitment dated (collectively, the "Notes "), all having the same note number. The Notes are hereby incorporated into the Contract. Terms used in the Contract with initial capital letters and not otherwise defined in the text hereof shall have the respective meanings given thereto in the Notes. The Borrower gives the Secretary full authority to act for the Borrower in negotiating with the underwriters selected by the Secretary (the "Underwriters ") the terms of the public offering. 1. (a) All funds received by the Borrower under the Notes (the "Guaranteed Loan Funds ") shall be deposited immediately on receipt in a separate identifiable custodial account (the "Guaranteed Loan Funds Account ") with a financial institution whose deposits or accounts are Federally insured. The balance of deposited funds exceeding such insurance coverage shall be fully collateralized by Government Obligations as defined in paragraph 10. The account shall be established and designated as prescribed in the attached Letter Agreement for Section 108 Loan Guarantee Program Custodial Account (Attachment 1) and shall be maintained for the Guaranteed Loan Funds. The Borrower is authorized to make withdrawals from said account only for the payment of the costs of approved activities or for the temporary investment of funds. Investments shall be limited to Government Obligations, as defined in paragraph 10, having maturities that are consistent with cash requirements of the approved activities. In no event shall the investments mature on or after January 1, 1989 , or have maturities which exceed one year. All investments shall be held in trust for the benefit of the Secretary by the above financial institution in an account (the "Guaranteed Loan Funds Investment Account ") established and designated as prescribed in the attached Letter Agreement for Section 108 Loan Guarantee Program Custodial Investment Account (Attachment 2) and shall be maintained for Government Obligations purchased with funds from the Guaranteed Loan Funds Account. All proceeds and income derived from such investments shall be returned to the Guaranteed Loan Funds Account. All funds in the Guaranteed Loan Funds Account must be disbursed by the Borrower for approved activities by January 1, 1989 Any funds remaining in the Guaranteed Loa n.Funds Account after this date shall be immediately transferred to the Loan Repayment Account. (b) Borrower shall by the fifteenth day of each month provide the Secretary with a written statement showing the balance of funds in the Guaranteed Loan Funds Account and the withdrawals from such account during the preceding calendar month and a statement identifying the obligations and their assignments in the Guaranteed Loan Funds Investment Account. (c) Upon a declaration of Default by the Secretary, all right, title, and interest of the Borrower in and to the Guaranteed Loan Funds Account and Guaranteed Loan Funds Investment Account shall immediately vest in the Secretary for use in the making of payment due on the Notes or purchase of Government Obligations in accordance with paragraph 10. 2. The Borrower shall make payments due on or before the Public Offering Date directly to the Holder of the Notes when due. (The "Public Offering Date" shall be the date fixed as such in a notice given by the Underwriters to the Secretary not less than five Business Days in advance thereof. "Business Day" shall mean a day in which banking institutions in New York are not required or authorized to remain closed and on which the New York Stock Exchange is not closed.) After the Public Offering Date, pursuant to a fiscal agency agreement, the Borrower shall pay to the fiscal agent selected by the Underwriters (the "Fiscal Agent "), as collection and paying agent for the Notes, all amounts due pursuant to 2 the terms of the Notes. Payment shall be made by 3:00 P.M. (New York City time) on the fifth Business Day preceding the relevant Payment Date. Payment may be made by check or wire transfer. 3. The Secretary shall select a new fiscal agent on behalf of the Borrower if the Fiscal Agent resigns or is removed by the Secretary. 4. (a) The Borrower shall pay the customary and usual issuance, underwriting, and other costs of the public offering, including the cost of compensation of the Fiscal Agent. Such payment shall either be made by wire transfer to the Fiscal Agent on the day prior to the Public Offering Date or be made from the Guaranteed Loan Funds on the Public Offering Date. If the Borrower does not make such payment, the Secretary may make such payment with grants pledged pursuant to paragraph 5(a). (b) The Borrower shall reimburse the Underwriters for all out -of- pocket expenses ( including reasonable fees and disbursements of counsel) incurred in connection with the proposed public offering if the public offering does not occur because of any refusal, inability, or failure on the part of the Borrower to submit to the Secretary no later than ten days before the estimated Public Offering Date the executed notes for the public offering; the executed fiscal agency agreement; and an opinion of the Borrower's counsel that the notes are valid, binding, and enforceable obligations of the Borrower, the governing body has authorized, in accordance with applicable state and local law, the issuance of the notes, the pledge of grants pursuant to 24 C.F.R. 5570.703(b)(2) is valid, there is no outstanding litigation that will affect the validity of the notes, and the fiscal agency agreement is a valid, binding, and enforceable obligation of the Borrower. If the Borrower fails to reimburse the Underwriters as provided in this paragraph, the Secretary may pay the amount of the reimbursement from funds pledged pursuant to paragraph 5(a). 5. The Borrower hereby pledges as security for repayment of the Notes the following: (a) All grants which have been made or for which the Borrower may become eligible under Section 106 of Title I. 3 (b) Program income derived from disposition by sale or lease of any real property to the extent acquired or rehabilitated with the Guaranteed Loan Funds including any interest earned on such disposition proceeds. (c) Other security: (d) All proceeds (including insurance and condemnation proceeds) from any of the foregoing. 6. (a) All amounts pledged pursuant to paragraphs 5(b), 5(c), and 5 (d) shall be deposited immediately on receipt in a separate identifiable custodial account (the "Loan Repayment Account ") with a financial institution whose deposits or accounts are Federally insured. The balance of deposited funds exceeding such insurance coverage shall be fully collateralized by Government Obligations as defined in paragraph 10. The account shall be established and designated as prescribed in the attached Letter Agreement for Section 108 Loan Guarantee Program Custodial Account (Attachment 1) and shall be maintained for such pledged funds. Borrower is authorized to make withdrawals from said account only for the purpose of paying interest and principal due on the Notes, including the purchase of Government Obligations in accordance with paragraph 10, or for the temporary investment of funds, until final payment and discharge of the indebtedness evidenced by the Notes, unless otherwise expressly authorized by the Secretary in writing. Investments shall be limited to Government Obligations, as defined in paragraph 10, having maturities that are consistent with cash requirements for payment of principal and interest as required under the Notes. In no event shall the maturities of such investments exceed one year. All investments shall be held in trust for the benefit of the Secretary by the above financial institution in an account (the "Loan Repayment Investment Account ") established and designated as prescribed in the attached Letter Agreement for Section 108 Loan Guarantee Program Custodial Investment Account (Attachment 2) and shall be maintained for Government Obligations purchased with funds from the Loan Repayment Account. All proceeds and income derived from such investments shall be returned to the Loan Repayment Account. 4 (b) Borrower shall by the fifteenth day of each month, provide the Secretary with a written statement showing the balance of funds in the Loan Repayment Account and the deposits and withdrawals of all funds in such account during the preceding calendar month and a statement identifying the obligations and their assignments in the Loan Repayment Investment Account. (c) Upon a declaration of Default by the Secretary, all right, title, and interest of the Borrower in and to the Loan Repayment Account and Loan Repayment Investment Account shall immediately vest in the Secretary for use in the making of payments due on the Notes or purchase of Government Obligations in accordance with paragraph 10. 7. Any grants available to the Borrower under Section 106 of Title I (including program income derived therefrom) are authorized to be used by the Borrower for payments due on the Notes, or for the purchase of Government Obligations in accordance with paragraph 10. 8. Upon a determination by the Secretary that payments pursuant to the requirements of paragraph 2 and paragraph 4 are unlikely to be made as specified, the Secretary may limit the availability of grants pledged pursuant to paragraph 5(a). Such limitation shall be in an amount estimated by the Secretary to be sufficient to ensure such payments are made when due and may be effected by withholding amounts at the time such grants are approved or by disapproving payment requests submitted with respect to such grants. 9. The Secretary may use grants withheld pursuant to paragraph 8 to make payments required by paragraph 2 and paragraph 4 if such payments have not been made by the Borrower. 10. For purposes of this Contract, the Notes shall be deemed to have been paid if there shall have been deposited with the Fiscal Agent either moneys or government obligations, which in the sole determination of the Secretary, mature and bear interest at times and in amounts sufficient, together with the moneys on deposit with the Fiscal Agent for such purpose, to pay when due the principal and interest to become due on the Notes. All of the Notes or all Notes of any maturity may be so defeased, provided that all Notes having the longest maturities are defeased before those with shorter 5 maturities. If all Notes guaranteed pursuant to this Contract shall be deemed to have been paid, then the Borrower shall be released from all agreements, covenants, and further obligations under t h i s Contract. "Government Obligation" means direct obligation of, or any obligation for which the full and timely payment of principal and interest is guaranteed by, the United States of America, including but not limited to, United States Treasury Certificates of Indebtedness, Notes and - State and Local Government Series or certificates of ownership of the principal of or interest on direct obligations of, or obligations unconditionally guaranteed by, the United States of America, which obligations are held in trust by a commercial bank which is a member of the Federal Reserve System and has capital and surplus (exclusive of undivided profits) in excess of $100,000,000. 11. (a) A Default under the Notes shall occur upon failure by the Borrower to pay when due an installment of principal or interest on the Notes, unless such payment is made when due by the Secretary pursuant to paragraph 9. The Borrower waives notice of Default and opportunity for hearing for failure to make a payment when due. (b) The Secretary may declare the Notes in Default if the Secretary makes a final decision in accordance with the provisions of 24 CFR 5570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments, suspend approval of further Advances under the Notes, and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from, the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. 12. Upon a declaration of Default, the Secretary may exercise any or all of the following remedies: (a) The Secretary may continue to make payments due on the Notes or purchase Government Obligations in accordance with paragraph 10 with any pledged funds and may use pledged funds to pay any interest due for late payment. 6 (b) The Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments. (c) The Secretary may withhold approval for any or all further Advances under the Notes. (d) The Secretary may accelerate the Notes during the period beginning on the I n i t i a l M a t u r i t y Date and ending on the Public Offering Date. (e) The Secretary may exercise any other appropriate remedies or sanctions authorized under laws or regulations applicable to the assistance provided under this Contract, or may institute any other action authorized by law to recover Guaranteed Loan Funds from amounts pledged under this Contract. 13. The Contract, and the Notes are hereby incorporated in and made a part of the Grant Agreement authorized by the Secretary on April 21 , 1987 under the Funding Approval for grant number B- 87 -MC -08 -0007 to the Borrower. 14. The Borrower's liability for amounts due pursuant to the terms of the Notes shall be limited to the security pledged in paragraph 5 of this Contract. 15. Special Conditions and Modifications: [ ] Check if continued on extra sheet and attach. 7 IN WITNESS WHERBDF, the undersigned, as authorized officials of the Borrower and the Secretary, have executed this Contract for Loan Guarantee Assistance. City of Pueblo, Colorado BORROWER ATTEST: Marian Mead Name BY: Name City Clerk (Ti t le Sfgna ure President of City Council (Title f• , Signature (D to SECRETARY OF HOUSING AND URBAN DEVELOPMENT BY: Nancy C. Silvers Deputy Assistant Secretary for Program Management NOTE NUMBER: B- 87 -MC -08 -0007 DATE OF NOTE: Il "4 BORROWER: City of Pueblo, Colorado INITIAL MATURITY DATE: March 15, 1988 PRINCIPAL AMOUNT: $1,165,000.00 PURCHASE DATE: REGISTERED HOLDER: PUBLIC OFFERING DATE: INTEREST RATE: For value received, the undersigned, the Ci ty o Pueblo, (the "Borrower ", which term includes any successors�an — a ssigns), a municipal corporation organized and existing under the laws of the State of Colorado , promises to pay to the order of the above named Registere (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with interest at the rate or rates, hereinafter provided such amounts as may be advanced under this Note from time to time by the initial Holder to the Borrower (individually, the "Advance", and collectively, the "Advances "). The initial Holder shall make the Advances upon the written request of the Borrower and the approval of the Secretary of Housing and Urban Development (the "Secretary "), or his or her designee, pursuant to the Contract (as hereinafter defined), which provisions shall not be deemed to vary any obligations specified in this Note; provided, however, that the total amount of Advances under this Note shall not exceed the Principal Amount (as hereinabove stated) and no Advance shall be made after one Business Day (as hereinafter defined) immediately prior to the Purchase Date (as hereinafter defined). The initial Holder shall insert the date and amount of each such Advance as provided below under Record of Advances and Payments. From the date of each such Advance to the Initial Maturity Date (as hereinabove stated) interest shall be paid on the unpaid principal balance of each Advance under this Note at an interest rate per annum equal to five - eighths of a percent (5/8%) per annum above the LIBO Rate {as hereinafter defined) for such interest period (the "Interim Period "). The "LIBO Rate" for any Interim Period means an interest rate per annum equal to the rate of interest per annum at which deposits in United States dollars are offered by the principal office of the initial Holder in London, England to prime banks in the London interbank market at 11:00 a.m. (London time) two Business Days before the first day of such Interim Period for a period equal to such Interim Period. For each Advance made from and after the Initial Maturity Date to the Purchase Date (as hereinafter defined) interest shall be paid on the unpaid balance of each Advance under this Note at an interest rate per annum equal to three - fourths of a percent (3/4%) per annum above the Effective Federal Funds Rate (as hereinafter defined) for each day each Advance is outstanding. The "Effective Federal Funds Rate" means, for any day, the weighted average of the rates on overnight Federal Funds transactions, with members of the Federal Reserve System only, arranged by Federal Funds brokers, as of such day by the Federal Reserve Bank of New York. From and after the Initial Maturity Date until the Purchase Date, Advances which have been made under this Note shall be renewed so long as no event has occurred and is continuing which would constitute a Default as defined in the Contract and the Guarantee remains in full force and effect; provided, however that there shall not be deemed a failure to pay for such purpose if the Borrower shall pay interest due within three (3) Business Days after the due date with interest thereon at the rate hereinafter specified. If the Public Offering Date (as hereinafter defined) shall not be the same date as the Purchase Date, interest from and after the Purchase Date to the Public Offering Date shall be paid on the unpaid balance of each Advance at the rate published daily for call money lent by brokers on stock exchange collateral quoted by commercial banks, as determined by Smith Barney, Harris Upham & Co. Incorporated, New York, New York, plus one -half of one percent per annum. Interest payable on or before the Purchase Date or the Public Offering Date shall be calculated on the basis of a 360 -day year. The above stated Interest Rate as of the Public Offering Date shall be that rate which will enable the Underwriters (as hereinafter defined) to sell the Note under then prevailing market conditions as of the Public Offering Date at one hundred percent (100 %) of the aggregate unpaid principal amount owing thereon. From the Initial Maturity Date to the Public Offering Date interest at the applicable rate shall be paid on any February 1 and August 1 during such period and on the Purchase Date and the Public Offering Date. On or prior to the Public Offering Date the Holder agrees to notify the Borrower by telephone by 10:00 a.m. (New York time) on any date when interest is due of the correct amount of interest due and payable on such date and, upon the telephonic request of the Borrower no earlier than four (4) Business Days in advance of such date, the Holder agrees to provide the Borrower promptly with the best estimate of the �m Holder of the amount of interest due and payable. From and after the Public Offering Date, interest at the Interest Rate shall be paid semi - annually on February 1 and August 1 of each year and at maturity. Interest at the Interest Rate shall be calculated on the basis of a 365 -day, or when applicable a 366 -day year, and the actual number of days elapsed. All Advances hereunder shall be repaid in annual installments of principal on August 1 in the following amounts: 1988 $150,000.00 1989 $165,000.00 1990 $185,000.00 1991 $200,000.00 1992 $220,000.00 1993 $245,000.00 If the total of all Advances made under this Note is less than the Principal Amount (as hereinabove stated), the difference shall be, at the direction of the Borrower and with the approval of the Secretary, subtracted from the above schedule in either the inverse order of maturity, the order of maturity, or on a pro rata basis. Both principal and interest shall be paid in such funds as are at the time of payment legal tender for the payment of debts due to the United States. This Note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of between the Borrower and the Secretary and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. 15308 (the "1974 Act "). This Note is subject to the terms and provisions of said Contract, I to which Contract reference is hereby made for a statement of said terms and provisions, including those under which this Note may be paid prior to its due date or its due date accelerated and for a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the Holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the 1974 Act. As used in this Note, the following terms with initial capital letters shall have the following meanings. The "Underwriters" shall mean Salomon Brothers Inc, Smith Barney, Harris Upham & Co. Incorporated and Citicorp Investment Bank - 3 - (Citibank, N.A.). "Purchase Date" shall mean the date fixed as such in a notice given by the Underwriters to the Secretary and the initial Holder not less than five (5) Business Days in advance thereof, but in any event not later than September 30, 1988, unless waived by the initial Holder. The "Public Offering Date" shall be that date fixed as such in a notice given by the Underwriters to the Secretary and the initial Holder (if the initial Holder then holds this Note) not less than five (5) Business Days in advance thereof. The Holder of this Note is hereby irrevocably authorized by the Borrower to insert the Purchase Date and the Public Offering Date in the spaces provided above. On and after the Public Offering Date, this Note may be exchanged for a new note or notes to be delivered by the Borrower in connection with the public offering, such exchange to occur at a time and place to be designated by the Underwriters. The new notes shall be in such denominations as determined by the Underwriters, and shall be modified in such form as agreed to by the Secretary and the Underwriters, all in accordance with the terms and provisions of the Contract. In case any payment of principal or interest herein provided for shall not be made when due on or before the Purchase Date, the amount payable shall be such payment, plus interest thereon at the rate which is one percent in excess of the then applicable rate payable on this Note, from the date such payment was due until paid. Nothing in the immediately preceding sentence shall be construed as permitting or implying that the Borrower may, without the written consent of the Holder and the Secretary, modify, extend, alter or affect in any manner whatsoever the right of the Holder to receive any and all payments of principal and interest specified in this Note. Whenever any payment under this Note shall be due on a Saturday, Sunday or holiday for the Holder of this Note, such payment shall be due on the first day thereafter on which the Secretary and such Holder are open for business and, only with respect to any interest due on or prior to the Public Offering Date, such extension of time shall be included in computing interest in connection with such payment, and excluded in connection with the next payment. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments, extensions, and renewals as may be agreed upon from time to time by the Holder, the Borrower, and the Secretary. Prior to the Public Offering Date, the Borrower hereby agrees to allow the Secretary to consent on its behalf to such modifications, including any modifications with respect to the interest rate borne by the Note. - 4 - At any time on or after the Initial Maturity Date until the Public Offering Date, the Borrower, with the consent of the Secretary, may prepay this Note, in whole or in part, upon five (5) Business Days (as hereinafter defined) notice to the Holder and the Secretary, at the purchase price of one hundred percent (100 %) of the unpaid principal amount to be prepaid, plus accrued interest thereon to the date of prepayment. "Business Day" shall mean a day on which banks in the city in which the principal office of the Holder is located are not required or authorized to remain closed and on which the New York Stock Exchange is not closed. Partial prepayments shall be credited against principal installments in the inverse order in which such installments are due. A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, unless such payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare the Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 CFR1' ?$70.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the 1974 Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments, suspend approval of further advances hereunder, and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. On or after the Initial Maturity Date until the Public Offering Date, upon the occurrence of a Default as defined in the Contract, the then outstanding principal sum of this Note together with accrued interest thereon may be declared due and payable by the Secretary in the manner and with the effect provided in the Contract. From and after the Public Offering Date this Note is not subject to prepayment or acceleration. The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. M'E This Note is issued, executed, and delivered on behalf of the Borrower by its authorized officer as an obligation guaranteed by the Secretary pursuant to Section 108 of the 1974 Act. IN WITNESS WHEREOF, the undersigned, as an authorized officialpf the Borrower, has executed and delivered this Note on this Z?s� day of jSF,- uf-R y , 1988. NAME OF BORROWER - City of Pueblo, Colorado By: (Signature) Ken Hunter, President of City Council (T ype Name and Title of Authorized Official) ATTEST: T Si gnature Marian Mead City Clerk (Type Name an Title of Person Attesting) FIRST ASSIGNMENT AND TRANSFER For value received, the undersigned assigns and transfers this Note to (Name and Address of ssignee (Social ecur ty or Other Indentifying Number of ssignee and irrevocably appoints attorney -in -fact to transfer it on the books kept for registration of the Note, with full power of substitution. Dated: Note: The signature to this assignment must correspond with the name as written on the face of the Note without without alteration or enlargement or other change. Signature Guaranteed: Bank, rust Company or irm By: Authorized ignature - 7 - SECOND ASSIGNMENT AND TRANSFER For value received, the undersigned assigns and transfers this Note to (Name ana Address of ssignee (Social Security or Other Indentifying Number of ss gnee and irrevocably appoints attorney -in -fact to transfer it on the books kept for registration of the Note, with full power of substitution. Dated: Note: The signature to this assignment must correspond with the name as written on the face of the Note without alteration or Bank, Trust Company or Firm enlargement or other change. Signature Guaranteed: Bank, rust Company or rm By: Authorized igna ure THIRD ASSIGNMENT AND TRANSFER For value received, the undersigned assigns and transfers this Note to (Name and Address of ss gnee (Social ecur ty or Other Indentifying Number of ss gnee and irrevocably appoints attorney -in -fact to transfer it on the books kept for registration of the Note, with full power of substitution. Dated: Note: The signature to this assignment must correspond with the name as written on the face of the Note without alteration or Bank, Trust Company or Firm enlargement or other change. Signature Guaranteed: Bank, rust Company or Firm By: Authorized ignature FOURTH ASSIGNMENT AND TRANSFER For value received, the undersigned assigns and transfers this Note to (Name and Address of ssignee (Social Security or Other Indenfifying Number of ssignee and irrevocably appoints attorney -in -fact to transfer it on the books kept for reg s ration of the Note, with full power of substitution. Dated: Note: The signature to this assignment must correspond with the name as written on the face of the Note without alteration or Bank, Trust Company or Firm enlargement or other change. Signature Guaranteed: Bank, rus ompany or Firm By: Authorized ignature - 10 - FIFTH ASSIGNMENT AND TRANSFER For value received, the undersigned assigns and transfers this Note to (Name and Address of ssignee (Social ecur ty or Other Indentifying Number of ssignee and irrevocably appoints attorney -in -fact to transfer it on the books kept for reg stration of the Note, with full power of substitution. Dated: Note: The signature to this assignment must correspond with the name as written on the face of the Note without alteration or Bank, Trust Company or Firm enlargement or other change. Signature Guaranteed: Bank, rus Company or Firm By: Authorized igna ure =am L RECORD OF ADVANCES AND PAYMENTS Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Advance Number: Amount of Advance: Date Made: Interest Rate: Authorized Official Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: - 12 - RECORD OF ADVANCES AND PAYMENTS Principal Payment Payment Interest Principal Applied To Authorized Date Paid Paid Advance Number Official Name: Title: Name: Title: Name: Tit�e Name Title: Name: �Ti tl e : Ftame : Title: Name Title: Name : Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Name: Title: Na e: Tile: Name: Title: Name: Title: Name: Title: 13 -