Loading...
HomeMy WebLinkAboutResolution #2074RESOLUTION NO. 20 74 A RESOLUTION APPROVING A NOTE WITH THE NATIONAL BANK OF CANTON, CANTON STATE BANK and COMMUNITY BANK AND TRUST COP~iPANY, (LENDERS) AND THE CITY OF CANTON (BORROWER) WHEREAS, the Lake, Building and Grounds Committee has determined that it is necessary and in the best interest of the City of Canton to borrow up to $300,000.00 for the drilling of Well No. 2 (1989) at Canton Lake and for certain other improvements to be made at Canton lake; 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 Ch. 24, Sec. 8-1-3.1, I11. Rev. Stat. (1987). 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 $300,000.00 from the National Bank of Canton, Canton State Bank and Community Bank and Trust Company, upon terms and conditions set forth in said note is hereby approved. 3. The attached note is hereby designated by the Canton City Council as a "qualified tax exempt obligation" under Sec. 265(b)(3) of the Internal Revenue Code of 1986, as amended. Accordingly, the attached note shall provide that it is non-negotiable. 4. The City does not intend to issue more than $5,000,000.00 of tax exempt obligations in calendar year 1989 and seeks to avail itself of the small issuer exception of Sec. 148(f) of the Internal Revenue Code of 1986, as amended. 5. 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. 6. 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 5th day of September, 1989 upon a roll call vote as follows: AYES: Aldermen Chapman, May, Sarff, Steck, Zilly, Kovachevich. NAYS: None. ABSENT: Aldermen Bohler, Meade. APPROVED; Donald dwards, Mayor. ATTEST: ~- ,L~ '~ Nancy Whi s, City Clerk. P~i'~~9ca~i®n Instructi®ns ~ Do not publish C7 Publish in pamphlet form only D Publish in a general circulation newspaper ._ -~ ~ l L I ~~ .. CFty Att. __ _ _ Date UNITED STATES OF AMERICA STATE OF ILLINOIS, COUNTY OF FULTON CITY OF CANTON PROMISSORY NOTE The City of Canton, a municipal corporation of Fulton County, Illinois, (herein called "CITY"), for value received, being money loaned, hereby acknowledges itself to owe and promises to pay to THE NATIONAL BANK OF CANTON, a national banking association at Canton, Illinois, CANTON STATE BANK, an Illinois banking corporation at Canton, Illinois, and COMMUNITY BANK & TRUST COMPANY, an Illinois banking corporation at Canton, Illinois, at the offices of THE NATIONAL BANK OF CANTON, 100 West Elm Street, Canton, Illinois, on the 5th day of Sent. , 1969 , the principal sum of Three Hundred Thousand and no/100 Dollars ($300,000.00). The said NATIONAL BANK OF CANTON is acting as the agent for the CANTON STATE BANK and COMMUNITY BANK & TRUST COMPANY and all payments will be made at the main office at THE NATIONAL BANK OF CANTON, or at such other location as said banks may hereafter designate. In addition to the principal sum set forth above, the undersigned, the City of Canton, promises to pay interest at the rate of 9 percent (9~) per annum payable monthly on the principal sum remaining from time to time unpaid. Said monthly payments will also be made at the main office of THE NATIONAL BANK OF CANTON. The first interest payment is due on the nth day of October , 19 89 , and an interest payment is due on the 6th. day of each month thereafter, so long as any part of the loan is outstanding. Interest shall be calculated on the basis of a 360-day year. Both principal and interest on this note are EXHIBIT A, Resolution iQo. 2074 payable in lawful money of the United States of America at the main office of said NATIONAL BANK OF CANTON. This obligation is payable from supplemental income tax revenues received or to be received by the City of Canton. The CITY represents to said banks that this borrowing is authorized by the Illinois Municipal Code, Chapter 24, Illinois Revised Statutes. In the event that any of the banks retain or engage counsel to collect, enforce or protect its interest with respect to this note or if there be any default in the making of any payment, then the undersigned, the City of Canton, shall promptly pay all of the costs and expenses of any such collection, enforcement or protection, including reasonable attorneys' fees. The CITY hereby designates this note as a "qualified tax-exempt obligation" as that term is defined in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The CITY shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on this note to become subject to federal income taxes. This promissory note is non-negotiable. It is hereby certified, that all conditions, acts and things required by the constitution of the State of Illinois, the statutes of the State of Illinois and the Canton Municipal Code, to exist, to have happened and to have been performed precedent to issuance of this note, do exist, have happened and have been performed in due time, form and manner as required by law, and that the issuance of this note does not violate any constitutional or statutory limitation or any limitation imposed by any EXHIBIT A, Resolution No. 2 0 74 constitutional or statutory limitation or any limitation imposed by any existing resolution or ordinance heretofore adopted by the City Council of the City of Canton. IN WITNESS WHERf~OF, the City of Canton, in the County of Fulton, in the State of Illinois, by its City Council, has caused this note to be signed by its mayor, to be attested by the City Clerk, to be counter-signed by its treasurer, and the corporate seal of said city to be affixed hereto, ail as of the 6th day of September, 1989. ~. Donald E. Edwards, Mayor. ATTEST: ,. r ~l-tit~'~ ~~~ ~ Nancy Whi es, City Clerk. SIGNED: .. Patricia A. Wright, City T easurer. -3- ~1AMES H. MALMGREN ATTORNEY AT LAW 369 NORTH MAIN STREET CANTON, ILLINOIS 61820 PHONE: 309-647- 06470503 September 6, 1989 National Bank of Canton Canton State Bank Community Bank & Trust Co. Canton, Illinois RE: $300,000 City of Canton, Fulton County, Illinois, Supplemental Income Tax Note Ladies and Gentlemen: In connection with the consumation on the date loan to the City of Canton, Fulton County, Illinois of up to $300,000 by the National Bank of Canton, Bank and Community Bank & Trust Co., I have acted counsel to the City and examined, among other things rendering this opinion, the following: hereof of a (the "City") Canton STate as corporate necessary to 1. Resolution No. 2074, entitled "A RESOLUTION APPROVING A NOTE WITH THE NATIONAL BANK OF CANTON, CANTON STATE BANK AND COMMUNITY BANK AND TRUST COMPANY, (LENDERS) AND THE CITY OF CANTON (BORROWER)" of the City Council of the City of Canton, Illinois, passed and approved September 5, 1989. 2. The Promissory Note dated September 6, 1989 by and between the City as borrower and The National Bank of Canton, Canton State Bank and Community Bank and Trust Company, as lender. Based upon the foregoing, I am of the opinion that: A. The City is a non-home rule municipality located entirely in Fulton County, Illinois, validly existing and in good standing under the Constitution and laws of the State of Illinois. The City is organized under the Aldermanic form of municipal government (Article 3 of the Illinois Municipal Code). B. The Canton City Council has duly and effectively adopted Resolution No. 2074, and Resolution No. 2074 is in full force and effect according to the terms thereof. C. The Promissory Note has been duly executed and delivered by the City and constitutes a valid and binding obligation of the City in accordance with its terms, except to the extent that enforcement thereof may be limited by laws, rulings and decisions affecting remedies, and by bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors' ghts, and by equitable principles. D. The identified Promissory Note is x-exempt obligation" of the City as that term Section 265(b)(3) of the Internal Revenue Code amended. a "qualified is defined by of 1986, as E. To the best of my knowledge, there is no action, suit, proceeding, inquiry or investigation at law or in equity, before or by any judicial or administrative court or agency, pending or, to the best of our knowledge of ter due investigation, threatened against or affecting the City wherein an unfavorable decision, ruling or finding would adversely affect the validity or enforceability of the Promissory Note in accordance with its terms, or in any way relating to, affecting or questioning the execution or delivery of the Promissory Note or of any of the proceedings had or actions taken leading up to the execution and delivery of the Promissory Note or the design, planning, acquisition, construction, installation or operation of the financed Project in connection with which the Promissory Note is issued, or the payment of the interest on or principal of the Promissory Note, or otherwise affecting or questioning the validity of the Promissory Note. F. The adoption of all ordinances, resolutions and other actions of the City relating to the Promissory Note and all related proceedings, comply with all applicable laws governing the City and with all rules and regulations of the City. G. None of the proceedings had or actions taken with regard to the Promissory Note, including the proceedings relating to the execution, and delivery of the Promissory Note, has or have been repealed, rescinded or revoked, except as expressly noted herein, and all such proceedings and actions remain in full force and effect on the date hereof.