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
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ATTEST:
APPROVED:
city( Clerk Pis dent of'the City Council
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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.
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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 -