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HomeMy WebLinkAboutResolution #3273RESOLUTION N0. 3273 A RESOLUTION APPROVING A NOTE WITH THE NATIONAL BANg OF CANTON (LENDER) AND THE CITY OF CANTON (BORROWER) WHEREAS, Public Works, Water & Sewer Committee has determined that it is necessary and in the best interest of the City of Canton to borrow on an interim basis up to $400,000.00 for the West Side Sewage Treatment Plant - Sludge Processing Improvements to be made at the Wastewater Treatment Plant; and, WHEREAS, the Canton City Council has made a similar determination; and, WHEREAS, the borrowing and expenditure of sums for such purpose is authorized by 65 ILCS 5/11-126-1 (Illinois Compiled Statutes). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, Fulton County, Illinois as follows: 1. That the Canton City Council hereby finds the foregoing recitals to be fact. 2. That the note attached, Exhibit "A" to this Resolution, providing that the City of Canton borrow up to $400,000.00 from the National Bank of Canton upon terms and conditions set forth in said note is hereby approved. 3. That the Mayor, City Clerk and City Treasurer are hereby authorized and directed to execute and deliver said note on behalf of the City of Canton and to take such further acts in the premises as may be reasonably necessary to effectuate and conclude the contemplated transaction. L,,. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Fulton County, Illinois and approval by the Mayor thereof. PASSED by the City Council of the City of Canton, Fulton County, Illinois at a regular meeting this 18th day of April, 1995 upon a roll call vote as follows: AYES: Aldermen Molleclc, Sarff, Meade, Bohlen, Chapman, HAYS: None, ABSENT: Aldermen Coay, l?hillips, May. APPROVED: /~~-~ c~~ ~-onald E. Edwards, Mayor ATTEST: a y i s, City Clerk. Customer No. Due JDLY 12, 1995 $ 400,000.00 Note No. Date APRIL 13, 19 ~_ NINETY (90) DAYS--------------------------•---------After Date, For Value Received, the Undersigned promises to pay to the order of THE NATIONAL BANK OF CANTON, 100 W. Elm St., Canton, Illinois the principal sum of FOUR HONORED THOUSAND AND 00/100--------------------------------------------0OLLARS with interest thereon from date until. paid in full, at a rate per annum which shall be 6.50x payable JULY 12 ^ The interest rate on this note is determined by The National Bank of Canton Base Rate and will change from time to time with each change of this base rate a:s of the day such base rate is changed by bank. ^ Other: All payments to be applied first to interest and then to principal. Annual interest to be calculated on a ®360 ^ actual day, year and charged for the actual number of days elapsed. If a scheduled payment is not suffi- cient to bring interest current to the date of the payment, an additional amount necessary to cover interest expense shall be due and payable at the time of such payment. I (We) desire CREDIT LIFE INSURANCE at a premium of $ X X Birthdate SS# Birthdate SS# The undersigned hereby grants to the above named bank, its heirs and assigns, a security interest in the following described property and all additions and accessions thereto, and proceeds thereof, herein collectively called Collateral: The undersigned hereby warrants, covenants, and agrees for value received as follows: That except for the security interest granted hereby, undersigned is, or to the extent that this agreement states that the Collateral is to be acquired after the date hereof, will be, the sole owner of the Collateral, free from any other Ilan, encumbrance, or security interest and that undersigned will defend the Collateral against all claims and demands of all persons at any time cisiming the same or any interest therein. Undersigned will not sell or otherwise transfer the Collateral or any interest therein and will not permit any other lien or security interest to be attached thereto without the written consent of bank. Undersigned shall keep the Collateral insured with a reputable insurance company satisfactory to bank against physical damage for no less than the total amount owed to bank. Insurance policies shall be payable to bank as its interest may appear. If undersigned falls to procure Insurance, bank has the option, but is not obligated, to do so at undersigned's expense. Undersigned shall promptly pay when due all taxes and assessments that may be levied against the Collateral. If undersigned fails to do so, bank has the option, but is not obligated, to make payment at undersigned's expense. This security interest is given to secure the payment of any and all indebtedness and liabilities whatsoever of the undersigned to the bank, whether direct or indirect, absolute or contingent, or due or to become due, and whether now existing or hereafter arising. In the event that title to real estate described in any mortgage securing this note shall be sold, transferred, conveyed, or encumbered, or should the undersigned or any successor contract to sell, transfer, convey or in any way alienate or encumber said title without the prior approval in writing of the holder of this note, the holder may, at its option, declare ail unpaid indebtedness evidenced by this note due and payable forthwith. The undersigned agrees to the terms of this Note and Security Agreement set forth above and to the additional terms and provisions set forth on the reverse side of this document. Address: 210 EAST CHESTNUT ST.~,CANTON, IL 61520 CL1-S~ Signatures: CITY OF CANTON aTar_mn I LET TiTAra TTA T,~i,m If the Bank snowo a~ any ume be of the opinion that the Cotlateral s not sufficient, or has oeclmed or may decline in value or should the holder deem itself insecwe, then the Bank may call for additional security satisfactory to the Bank and the undersigned promisee to furnish such additional security forthwith. The call for additional security may be oral or by telegram or by United States Mail addressed to the last address for the undersigned shown on the Bank's records. If sny one or more of the following events shall occur (hereinafter called an "Event of Default"), that Is to say, if: (I) default shall be made In the punctual payment of any Installment hereunder, when due; or (ii) any statement, application or supporting financial statememt furnished the Bank by the undersigned shall be found to be false In any material respect; or (III) default shall be made in the punctual payment of any other obligation of the undersigned to the Bank, when due; or (iv) the undersigned, or any of them, shall become Insolvent, or shall be unable to pay his debts as they mature; or shall admit In writing his inability to pay his debts as they mature; or shall make an assignment for the benefit of his creditors; or shall file or commence or have filed or commenced against him any proceeding for any relief under any bankruptcy or insolvency laws or any laws relating to the relief of debtors, read)uatment of Indebtedness, reorganizations, compositions or extensions, or a receiver or trustee shall be appointed for the undersigned; or (v) the undersigned, or any of them, shall die; or (vi) the under• signed shall fall to furnish additional security immediately upon call from the Bank at: provided for the hereunder; or (vii) the Bank shall deem itself Insecure, for any reason whatsoever then, upon the occurrence of any such event, this Note shall, at the option of the Bank, become immediately due and payable, without presentment, demand notice or protest of any kind, all of which are expressly waived by the undersigned. In case of the occurrence of an Event of Default hereunder, any indebtedness due from the Bank to any of the undersigned may, at the option of the Bank, be set off and applied against this Note whether due or not. The term "undersigned" as used In this Note shall Include all of the makers of this Note and all guarantors thereof. Each of the undersigned agrees to pay all costs of collection. legal expenses and attorney's fees incurred or paid by the legal holder in collecting this Nole after the occurrence of an Event of Default. Upon the occurrence of any such Event of Default, and at any time thereafter, the Hank shall have the rights and remedies of a secured party under the Uniform Commerical Code,of Illinois, including without limitation thereto, the right to sell or otherwise dispose of any or all of the Collateral. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Bank will send the undersigned reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or other intended disposition is to be made. The requirement of sending reasonable notice shall be met it such notice is mailed, postage prepaid, to the undersigned at the last address for the undersigned shown on the Bank's records at least five days before the time of the sale or disposition. The right Ia expressly granted to the Bank at its option to transfer at any time to itsei f or to its nominee any Collateral pledged hereunder and to receive the Income thereon and hold the same as security or apply it on the principal or interest due hereon or due on any liability secured hereby. The Bank shall use reasonable care in the physical custody of any Collateral, but shall bear no responsibility for its protection, collection or enforcement. The Bank may at its option, whether or not this Note is due, demand, sue Tor, collect or make any compromise or settlement it deems desirable with reference to Collateral held hereunder. The Bank shall not be bound to take any steps necessary to preserve any rights in the Collateral against prior parties, which the undersigned hereby assumes to do. No rights or remedy granted to the Bank herein shall affect or diminish any right or remedy granted to the Bank in any security agreement executed by one or more of the undersigned relating to any Collateral securing these Obligations. All o(the undersigned agree that they are each primarily and jointly and severally liable Hereon and that the receipt of the consideration hereof by any pne of the undersigned shall con• atitute the receipt thereof by all of the undersigned; and agree that no release of one or more makers of this Note or of any security for this Note shall release any other maker. Each of the undersigned consents to any and all renewals or extensions of this Note. No delay or omission on the part of the Bank in exercising any power or right hereunoer shall impair such right or power or be construed to be a waiver of any default or any acquiescence therein, nor shall any single or partial exercise of any power or right hereunder preclude any or full exercise thereof or the exercise of any other power or right. Every legal holder of this Note shall have and may exercise all the rights and powers given to the Bank in this Note and every notice to or act committed by any one of the undersigned shall constitute a notice to or act committed by all of the undersigned. MINIMUM FINANCE CHARGE - A minimum finance charge is required on each anti every borrowing transaction. This minimum finance charge is subject to change from time to time based upon the bank's cost of doing credit business. GUARANTY FOR VALUE RECEIVED, the• undersigned, jointly and severally, unconditionally guarantee the payment of the within note, accept all of Its provisions and agree to pay all costs, expenses and attorneys' fees incurred in collecting the same from or in prosecuting any suit against the makers, endorsers or guarantors. Guarantors, jointly and severally, waive demand, presentment for payment, notice of dishonor, notice of any change in the financial condition of the makers or of any other fact that might materially increase the risk of the guarantors. It is expressly agreed that the within note may be renewed, modified and the time of payment extendecf from time to time by the holder without notice to the guarantors, or any of them, and that the holder may accept part payment; and that such renewal, modification, extension or acceptance of part payment shall not discharge the guarantors. It is further agreed that the holder may, at any time, and at the discretion of the holder, accept substitution of, or release all or any part of the Collateral without discharging the guarantors. The liability of the guarantors shall in no wise be affected or impaired by acceptance by holder of other security for or other guarantors upon the within note or by any failure, neglect or omission on the part of holder to realize upon or protect the collateral or to exercise any lien upon or right of appropriation of any monies, credits or property of makers in the possession of holder. Each guarantor agrees that it shall not be necessary to proceed first against the makers or have recourse to the Collateral before proceeding to enforce this guaranty. The validity and construction of this guaranty shall be governed by the laws of the State of Illinois.