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HomeMy WebLinkAboutResolution #2054 - RESOLUTION NO. 2054 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) WHEREAS, the Lake, Buildings 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 a well 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 special meeting this 11th day of April, 1989 upon a roll call vote as follows: AYES: Aldermen Chapman, May, Bohler, Meade, Sarff, Steck, Zilly, Kovachevich. NAYS: None, ABSENT: None. APPROVED: ~~ ~~ Donald E. Ed ATTEST: Nancy Whites, City Clerk. ~ ras, Mayor. -2- UNITED STATES OF AMERICA STATE OF ILLINOIS, COUNTY OF FULTON CITY OF CANTON PROMISSORY NOTE The Cfty 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 Flm Street, Canton, Illinois, on the day of April, 1990, 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 nine percent (98) 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 d.~y of May, 1989, and an interest payment is due on the 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 EXHIBIT "A", RESOLUTION NO. 2054. ~~~ principal and interest on this note are payable in lawful money of the United States of America at the main office of said t1A'rIONAL BANK OF CANTON. This obligation is payable from water revenues received or to be received by the water department of the City of Canton. The undersigned, CITY, represents to the above banks that adequate provision is being made to pay principal and all interest on this obligation. Additionally, 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 fo 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, . , -2- 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 constitution~"1 or statutory limitation or any limitation imposed by any 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 WHEREOF, 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, all as of the day of April, 1989. Donald E. Edwards, Mayor. ATTEST: Nancy Wh tes, City Clerk. ~COUIVTE~tS IGNED ~~ Patr c a A. Wright, C y Treasurer. r -3- " .~