HomeMy WebLinkAboutOrdinances - O-86-414 - 12/18/1986 - AUTHORIZE ESCROW AGMT ISSUE $4.2M W/S BONDS SERIESORDINANCE NO. 0-86-414
AN ORDINANCE authorizing and directing the
execution of an Escrow Agreement in connection
with the issuance of $4,200,000 Waterworks and
Sewerage Revenue Bonds, Series 1986A, of the
City of McHenry, McHenry County, Illinois.
WHEREAS, the City of McHenry, McHenry County, Illinois
(the "Municipality"), has provided by Ordinance No. 0-86-390,
adopted by the City Council of the Municipality (the "Corporate
Authorities") on the 30th day of July, 1986, as amended on
December 18, 1986 for the issuance of $4,200,000 Waterworks and
Sewerage Revenue Bonds, Series 1986A, dated December 1, 1986,
(the "Bonds"); and
WHEREAS, a portion of the proceeds of the Bonds will be
used to refund in advance of maturity certain bonds of the
Municipality described as follows:
and
$179,000 original issue Waterworks and Sewerage
Revenue Bonds, dated May 1, 1956, (the "Series 1956
Bonds") of which $10,000 are currently outstanding,
of the denomination of $1,000 each, due serially on
May 1 of the years and in the amounts as follows:
Year Amount
1987 $10,000
$1,150,000 original issue Waterworks and Sewerage
Revenue Bonds, Series of 1979, dated September 1,
1979, (the "Series 1979 Bonds") of which $545,000
are currently outstanding, of the denomination of
$5,000 each, due serially on May 1 of the years
and in the amounts as follows:
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and
Year Amount
1987
$125,000
1988
130,000
1989
140,000
1990
150,000
$500,000 original issue Waterworks and Sewerage
Revenue Bonds, Series 1984, dated December 1,
1984, (the "Series 1984 Bonds") of which $455,000
are currently outstanding, of the denomination of
$5,000 each, due serially on May 1 of the years
and in the amounts as follows:
Year Amount
1987
$50,000
1988
50,000
1989
60,000
1990
65,000
1991
65,000
1992
75,000
1993
90,000
(collectively, the "Prior Bonds"); and
WHEREAS, in order to properly provide for the refunding
of the Prior Bonds, it will be necessary to place proceeds of the
Bonds in trust with an escrow agent to be invested by such escrow
agent, on behalf of the Municipality, in direct obligations of
the"United States of America; and
WHEREAS, such investments must be of amount and kind
such that the principal and interest thereon will be sufficient,
when added to a beginning deposit on demand to be derived from
proceeds of the Bonds, to pay at maturity all interest on and all
principal of the Prior Bonds; and
WHEREAS, it is necessary that the Corporate Authorities
authorize the form of agreement with an escrow agent and direct
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the execution of such escrow agreement by officers of the
Municipality:
NOW, THEREFORE, Be It Ordained by the City Council of
the City of McHenry, McHenry County, Illinois, as follows:
Section 1. Definitions. The words and terms used in
this ordinance shall have the definitions set forth for them in
the form of escrow agreement provided herein, unless the context
or use of same shall clearly indicate that another meaning is
intended.
Section 2. The Funding of the Escrow. As provided in
the Bond Ordinance, so much of the proceeds of the Bonds as may
be necessary shall be used to pay all interest when due and to
pay at maturity or applicable date of redemption all principal of
and applicable premium on the Prior Bonds. Such money will be
deposited in trust in the Escrow Account with the Escrow Agent as
provided in this ordinance. The amount thereof necessary to be
deposited in the Escrow Account shall be conclusively established
under the terms of the Agreement by the execution thereof by
des'1'§nated officers of the Municipality.
Section 3. Form and Authorization of Agreement. The
Agreement and all the terms thereof, in the form provided hereby,
and the Escrow Agent as named therein is hereby approved, and the
Mayor and City Clerk are hereby authorized and directed to
execute the Agreement in the name of the Municipality. The
Agreement shall be in substantially the following form:
-3-
corporate name by one of its duly authorized officers and to be
attested by one of its duly authorized officers under its
corporate seal hereunto affixed, all this 1st day of December,
1986.
Attest:
City Clerk
(SEAL)
Attest:
Its
(BANK SEAL)
CITY OF Mc HENRY, McHenry County,
Illinois
By
Mayor
AMERICAN NATIONAL BANK AND TRUST
COMPANY OF CHICAGO
Chicago, Illinois
By
s
EA-14
Section 4. Purchase of Government Securities. Warren
Associates, Northfield, Illinois, Blunt Ellis & Loewi
Incorporated, Chicago, Illinois, or Chapman and Cutler, Chicago,
Illinois, be and the same are hereby authorized to act as agent
for the Municipality in the purchase of the Government Securities
described and set forth in the Agreement.
Section 5. Severability. If any section, paragraph,
clause or provision of this ordinance shall be held invalid, the
invalidity of such section, paragraph, clause or provision shall
not affect any of the other provisions of this ordinance.
Section 6. Repealer. All ordinances, resolutions or
orders or parts thereof in conflict with the provisions of this
ordinance are to the extent of such conflict hereby repealed.
Section 7. Effective Date. This ordinance shall be in
effect immediately upon its passage by the Corporate Authorities
and signing and approval by the Mayor of the Municipality.
Signed and Approved: 18th day of December, 1986
By
M yor
Attest:
City Clerk
-( SEAL )
Ayes:
Nays:
Absent:
Bolger, McClatchey, Serritella, Smith, Snell, Teta
None
Nolan, Lieder
Recorded In Municipal Records:
18th day of December, 1986.