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Home My WebLink AboutRESOLUTION 1966-13_~ ~~ .. _ _ ____ .. _ j "~ r ~ ' r - r q s ,•r,. ,f~,, • '~ CI'!Y OF KEtiAI, ALA9KA R'.40LUTIU'J NO...0•13 PPROVING AMENDATORY LOAN AGREEMEM'T 'l~-~'~ '~ ~ ;. RESOLUTION A MMEREAS, the City of Kenai, Alaska, has heretofore spproved and executed a Loan Agreement in the form of an Offer dated December 1. 1965. and an Acceptance dated ,lanusry 19. 1966, with the United State: of Aweriea, acting by and through the Seeratary of Housing and Urban Development, fora loan to provide for the purchase from the Borrower of its 'City of Kanal Airport Terminal Facility Rovenue Bonds In the aggregate principal mount of $450,000, and bearln9 Interest at the rate preseribad by the Administrator for Fiscal Year 1966; and M1IEREAS~ the United States of America, acting by end throu~ tha secretary of Houcing and Urban Development. has tendered an An~sndatory loan A9reaaent Inwrporating certain eiodlflutions Ins the loan Agrseaent, Inaladin6 the sstablishsant of sn interact rate far Flsui Hear 1966 of j•j/4X. par annum and special condition revisions; and WHEREAS, Bald Amendatory Doan Agreement has been duly read In open saeting, fully considered in acwrdanw with all pertinent rules of procedure and legal requirements, and made a part of the records of the City of Kanal: and MIEREAS~ it Is deemed advisable and in the public interact that cold Asrndatory Loan Agreement be approved and Its execution author{set; NOME THEREFORE, be it resolved by the City Council of the City v/ Kenn that said Aisandstory loan Agreement be and the came hereby Is ,approved without reservation or qualification. A ~` ~ ~ln ~_ ._ - ' ~_ _ _ __ _ _ ~ ~• • ~'•,, - -r. BE IT ~URTHEii RESOWEO that ~ln8ene A. Morin , the7~0t~ Vice Mayor of the City of Kenal, be and he to hereby authorized to execute said Misndatory Loan Agreement. end Frances Torkilaen ,the Clty Clerk of said City. be and he Is hereby authorized to attest the exewtion of sold Amendatory Loan Agreement. Approved and adopted this 2. 3~ daY of March , 1966• (SEALS ~,u~ v'~" ATTEST : OU~.vMayor ty C er ,. ~ _~ ~ ____ ____._ ____..___ _ ___ _____ ___ _ ___ _ _. __ _ _ __ _. __. _ ~ _t _ __ ___.. y ~t ~ Project No. PFl,aAlaska-22 City of Konal Kenai , A la.ska Contract No. H-b02-2393 Amendment No. I AMENDATORY l0A N AGRt:E ME NT THIS AMENDATORY LOAN AGREEME~lt, by and between the City of Kenai, Alaska (herein called the "borrower"). and the Department of Noustng and Urban Development (herein called the "Government"). 411TNESSETH: MHEREAS, the Loan Agreement between the Government and the Borrower. In the fora of an Offer dated Oocembor 7, 1965. and an Acec~ptanco dated January 19. 1966. provides for the purchase from the Borrower of Its City of Kenai Airport Terminal Facility Revenue Bonds in the aggregate prtncipei amount of 8450,000, bearing interest at the rate prescribed by the Administrator for Fiscsi Yesr 1966; and WHEREAS, It Is necessary to revise provisions of the Special Con- ditions and to refieet the recent establishment of a 3-3/496 per annum interest rate with resulting changes In the maturity schedule; liOli, THEREFORE, for end !n considaratlon of the mutual benefits flowing to the Government and the Borrower, sold Loan Agreement is hereby amended as follows: 1. delete the second and third paragraphs on the face of the Offer and substitute the following: '~ha loan herein provided for shall be made by purchase Fran the Borrower, at the principal amount thereof plus accrued Interest thereon, of its Clty o~ iienai Airport Terminal Faetlity Revenue Bonds !n the ag9r~gate principal enwunt of 8450,000, and bearing interest at the rata of 3-3/4~ per annum, of such description and severed to such canner and containing such provisions as shall be satisfactory both to the Government and to the Borrower, but gen- erally in confoinntty with tM Bond Spaclficattons attached hereto. G1- acceptance hereof tM Borrower agrees to offer t is aforesat d obligstlans for public sale. The Governrnont will subwit Its bid for the Bonds and such bid wl i) be for •1 t of the Bonds at thei r par valve, ptw accrued !!~terest, at the rate of 3-3/416 psr annwe on all or any one or won o! the above blocks of Bonds. In the went any other bidder or bteders offer to purchase all of the Bonds at an laterast cost of riot wore than 3-j/4X per annuw, or any portion of tM Boeds in blocks h specified at an interest cost o! not wore than 3-3/46 per annuw, the Bonds or any wch portion thereof Mitl not be purchase/ by the 6overnwent. In the want of a axle of •il of the Bonds to • purchaser or purchasers other than the 0avernwent, this Ayreement snae~ terslnate except NitA respect to obligations hereunder betrwMn the Borrawr and the M rw ~- - L. _ _ t ~ - - -- -- - - -- --- - - - ~ - - --------- - -- - 2 Government as of the date of such sale of the Bonds. In the event any of the Bonds are awarded to the Govornment~ It is agreed that the obligations hereunder shall continue In the. same manner es if all the Bonds were sold to the Government. In tho event no bid is received from a bidder or bidders other than the Government within the terms herein specified, all the Bonds will be purchased by the Government." 2. Exhibit B, Speclal Conditions, attached to and made a part of the Loan Agreement. is amended as follows: (a) Oelete Speclal Condition (1) In its entirety and substitute therefor the following: "(1) Subject to making the foregoing maximun deposits, the Borrower may use the balance of excess funds In the Terminal Revenue Fund Account and In the Land Fund Account at the close of each fiscal year (1) to redeem outsta~ding Airport Terminal Facility Revenue Bonds on the next Interest payment date, to inverse numerical order and to amount of not loss than SS.000 par value at one time, or (2) for any expenditures, Including the payment of debt service, in improving or restoring any existing Terminal System facilities or providing any such additional fecllltlss, or (3) for any other lawful purpose relating to the Airport; provided, howevera that not more than s20,O00 of such excess funds in the Land Fund Account may be so used in any fiscal year. unless and until the following conditions have been met: A. The total funds and/or investments in the debt service reserve are at least 552.50O~ or such other debt service reserve amount as must be aecuR~ulatod upon the issuance of additional parity bonds; and B. The annual nst revenues of the Terminal System, defined as the gross revenues leas current expenses of Bald Terminal System, for two continuous fiscal years are certified by the chief accounting officer of the Borrower end approved by the chief officer and governing body of the Borrower, to have been equal to at Fast one and fifty hundredths (1.50) times the sverago annual requirements for principal and Interest on all Terminal Revenue Bonds then out- standing and psyable fran the revenue of the Terminal System and Operating Und System." (b) Redesignate Speclal Condition (n) on page 9 of Exhibit B to so•cl~l Condition (o). ~~ ;; ~ ~~ -. - i ,~+, 3 (c) insert the following as Special 6onditlon (p): ~~(p) Ifierever the nart!e Housing and Honro Finance Administrator and/or Housing and Home Finance Agency appears, It shall moan Seeretery of Housing and Urban Development and/or Department of Housing and Urban Development." 3. Exhibit C, Revenue Bonds, attached to and made a part of the loan Agreement, !s rrnended as follows: Deleu "Interest Rste" and "Maturities" In their entirety and substitute therefor the following: (s) "Interest Rate: 3.3/~~b" (b) "Maturities as of December 1, In years and amounts as follows: Years A_m°"..n~ Y= are A+"o~u .~~ 1968'1975 =10.000 1986.1991 520,000 1976-1985 15,E 1992-1995 25,E THiS AMENDATORY LOAN AGREEMENT shell becann effective as of the except as herebyalimanded,eshs liramaln intfullrforcelandaeffict~nt, CITY OF KE11111, ALASKA SECRETARII OF HOUSING AND URBAN DEVELOPMEId Cowunlty fecititterv Adn~lnistretlon ~ By Titl ' _ 1. R. Dur Director for Northwest Operations (SEAL) ATTEST: March 23, tgbb to ey - .,. Title ~~ ~~ --