HomeMy WebLinkAboutResolutions - R-82-9B - 07/12/1982 - Amending bond for Margosian RESOLUTION NO. R_82_cAMENDING
RESOLUTION NO. R-81-17
ENTITLED
"A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF
$3, 600, 000 ECONOMIC DEVELOPMENT REVENUE BONDS OF
THE CITY OF McHENRY, McHENRY COUNTY, ILLINOIS , FOR
THE PURPOSE OF MAKING A LOAN TO WESTERN NATIONAL
BANK OF CICERO, AS TRUSTEE UNDER TRUST NO. 6902 IN
ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION
OF A SHOPPING CENTER FACILITY CONSTITUTING AN
INDUSTRIAL PROJECT LOCATED IN THE CITY OF McHENRY,
ILLINOIS; AUTHORIZING EXECUTION OF A LOAN AGREEMENT;
PROVIDING FOR THE DELIVERY OF A NOTE AS SECURITY
FOR THE BONDS ; AUTHORIZING AN INDENTURE OF TRUST
PROVIDING FOR THE FORM OF THE BONDS AND SECURING
THEIR PAYMENT; AUTHORIZING THE TERMS OF THE BOND
PURCHASE AGREEMENT , THE MORTGAGE , ASSIGNMENT OF
RENTS AND GUARANTY AGREEMENT; AND RELATED MATTERS . "
AND AUTHORIZING EXECUTION AND DELIVERY OF AMENDATORY
AGREEMENTS
WHEREAS , the City of McHenry, McHenry County, Illinois
(hereinafter called the "City" ) is a duly constituted and existing
municipality within the meaning of Section 1 of Article VII of the
1970 Constitution of the State of Illinois and has heretofore
issued and delivered $3, 600, 000 Economic Development Revenue Bonds
(Boone Creek Plaza Project) dated August 21, 1981 (the "Bonds" )
pursuant to The Industrial Project Revenue Bond Act, Ill . Rev.
Stat . 1981, Chap. 24, Section 11-74-1 et seq . , as amended (the
"Act" ) and to Resolution No. R-81-17 adopted and approved July 20,
1981 (the "Bond Resolution" ) ; and
WHEREAS , Western National Bank of Cicero , as trustee
under Trust No . 6902 (the "Borrower" ) is a land trust duly organized
and existing under and by virtue of the laws of Illinois with its
principal office in Cicero, Illinois , and duly qualified to conduct
business in the State of Illinois and Charles S. Margosian and S.
Louis Rathje (the "Beneficiaries" ) own 100% of the beneficial
interest in the Borrower; and
WHEREAS , the City has heretofore entered into the (1)
Bond Purchase Agreement (the "Bond Purchase Agreement" ) dated as
of June 15, 1981 among the City, the Borrower, the Beneficiaries
and Elmhurst National Bank and Oak Park Trust & Savings Bank (the
"Purchasers" ) providing for the sale of the Bonds by the City to
the Purchasers, ( 2 ) Indenture of Trust (the "Indenture" ) dated as
of June 15, 1981 between the City and Elmhurst National Bank, as
trustee (the "Trustee" ) , containing a form of economic development
revenue bond, ( 3 ) Loan Agreement (the "Loan Agreement" ) dated as
of June 15, 1981, and between the City and the Borrower and the
Beneficiaries, containing a form of Note from the Borrower to the
City, which shall be endorsed to the Trustee; and
WHEREAS , the Beneficiaries have requested the City to
amend the Bonds in certain respects , and to enter into amendments
to the Indenture and the Loan Agreement relating thereto, and the
Purchasers have consented to such amendments in writing and have
represented that the Purchasers own and hold all the outstanding
Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF McHENRY, McHENRY COUNTY, ILLINOIS , AS
FOLLOWS:
Section 1 . Findings; Public Benefits. The City Council
of the City hereby finds and determines that the proposed amendments
to the Bonds, the Indenture and the Loan Agreement are in proper
form and in the best interests of the City.
Section 2 . Terms for the Bonds. The principal amount
of the Bonds is due in consecutive monthly principal installments
that become due in accordance with the schedule of payments attached
hereto on September 21, 1986 and on the twenty-first day of each
month thereafter to and including August 21, 2016, and interest
thereon (computed on the actual number of days elapsed and on the
basis of a 360-day year) at the rate of eleven and seventy-five
hundredths percent (11. 75% ) per annum, from the date hereof, shall
be payable quarterly commencing three months from the date of the
Bonds to and including August 21, 1986 ; provided, however, that
from and after August 21, 1986 interest on unpaid principal shall
be payable monthly commencing September 21, 1986 and on the twenty-
first day of each month thereafter to and including August 21,
2016 ; provided further however that on August 21, 1986 and at five
year intervals thereafter on August 21, 1991, August 21, 1996,
August 21, 2001, August 1, 2006 and August 21, 2011 such interest
rate may, at the option of the holders of 51% of the outstanding
principal amount of the Bonds , change to a rate (i) not exceeding
85% of the average of the interest rate per annum announced from
time to time by Continental Illinois National Bank and Trust
Company of Chicago at its principal office in Chicago, Illinois ,
as its prime rate (the "Prime Rate" ) as in effect for the preceding
six month period, or (ii) if the Borrower shall concur in writing,
not exceeding 140% of the Daily Bond Buyer 20-year General Obliga-
tion Bond Index then in effect, which rate shall be determined by
the registered owners of not less than 51% of the outstanding
principal amount of the Bonds and be effective for the next succeed-
ing five years; and provided further however, that at each such
five-year interval a new schedule of level principal and interest
payments shall be computed and be applicable for the succeeding
five-year period.
Section 3 . Amendments. Mayor and the City Clerk shall
execute, acknowledge and deliver, in the name and on behalf of the
City, amendments to the Bonds, the Indenture and the Loan Agreement,
in substantially the forms submitted to this City Council, which
are hereby approved in all respects, the amendments to the Bonds
to be in the form of amendments or as restated Bonds, as amended,
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but no such restated Bonds shall be entered into unless the holder
of the pertinent original Bond shall have surrendered such Bond
for cancellation.
Section 4 . Other Documents. The forms of amendments to
the Mortgage, the Assignment and the Guaranty (as defined in the
Bond Resolution) before this meeting , to be signed by parties
other than the City, are hereby approved in form and content, with
such changes and revisions as may be necessary and agreed upon by
the parties thereto .
Section 5 . General . The Mayor, the City Clerk, and
other officers , officials and employees be and they are each
hereby authorized and directed, in the name and on behalf of the
City, to execute any and all instruments , perform any and all
acts , approve any and all matters, and do any and all things
deemed by them, or any of them, to be necessary or desirable in
order to carry out and comply with the purposes of this Resolution
and the documents mentioned herein.
Section 6 . Execution. Execution and sealing by the
Mayor and City Clerk of amendments to the Bonds, the Indenture and
the Loan Agreement shall constitute conslusive evidence of their
approval of any and all changes or revisions therein from the
forms of such documents before this meeting .
Section 7 . Authority. Except as expressly herei provided,
the Bond Resolution is hereby confirmed and shall be controlling,
notwithstanding any provisions to the contrary contained in the
Illinois Municipal Code and all acts amendatory thereof and supple-
mentary thereto , and in any other law. All other ordinances,
resolutions, orders or parts thereof in conflict with the provisions
of this resolution are , to the extent of such conflict, hereby
repealed.
Section 8 . Severability. The provisions of this
Resolution are hereby declared to be severable and if any section,
phrase or provision shall, for any reason, be declared to be
invalid, such declaration shall not affect the validity of the
remainder of the sections, phrases or provisions.
Section 9 . Effective Date. This Resolution shall be in
full force and effect immediately upon its adoption by the Mayor
and City Council and approval by the Mayor.
Adopted and approved in open Council meeting this 12th
day of July , 1982.
The foregoing Resolution was voted upon and passed by
the Mayor and City Council of the City of McHenry, McHenry County,
Illinois on July 12 , 1982 with 7 "ayes" , p abstaining,
0 "nays" and 2 absent.
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The City Clerk be and is hereby authorized and directed
to publish this Resolution in pamphlet form as provided by law.
Approved:
Mayor
(SEAL)
ATTEST:
City Clerk
Published this 13th day of J1y , 1982 in
pamphlet form.
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