HomeMy WebLinkAbout1981-OR-48C01~!ON CO1TNCIL ORDII~IANCI~
NO o 81-OR-~'~______
A SPECIAL ORDINANCE authorizing the City of Jeffersonville to issue its
"Economic Development Mortgage Revenue Bonds (Rangaswami Project)" in the
principal amount of Two Hundred Fifty Thousand Dcllars ($250,000) and
approving and authorizing other actions in respect thereto.
WHEREAS, the Jeffersonville Economic Development Commission has
rendered a Report of the JefferSonville Economic Development Commission
concerning the proposed financing of economic development facilities for
Malaipatty R. Rangaswami and Ranganayaki Rangaswami, husband and wife, and
the Jeffersonville City Plan Commission has been given an opportunity to
comment thereon; and
WHEREAS, the Jeffersonville Economic Development Commission after a
public hearing conducted on October 5, 1981, adopted a Resolution on that
date, which Resolution has been previously transmitted hereto, finding that
the financing of certain economic development facilities of Malaipatty R.
Rangaswami and Ranganayaki Rangaswami, complies with the purposes and
provisions of IC 36-7-12 and that such financing will be of benefit to the
health, prosperity, economic stability and general welfare of the City of
Jeffersonville and its citizens; and
WHEREAS, the Jeffersonville Economic Development Commission has
approved the forms of the Loan AgreeMent, including the Note attached
thereto, the Mortgage and Trust Indenture and the Bond Purchase Agreement by
resolution adopted October 5, 1981, which Resolution has been transmitted
hereto; and
WHEREAS, no member of the Common Council of the City of Jeffersonville
has any pecuniary interest in any employment, financing agreement or other
contract made under the provisions of IC 36-7-12 and relating to the economic
development facilities project of Malaipatty R. Rangaswami and Ranganayaki
Rangaswami, or to the issuance of the economic development revenue bonds
authorized herein; now therefore:
BE IT ORDAINED BY TH~ COMMON COUNCIL OF THE
CITY OF JEFFERSONVILLE:
SEC%ION 1. It is hereby found that the financing of the economic
development facilities referred to in the Loan Agreement, previously approved
by the Jeffersonville Economic Development Commission and presented to this
Common Council, the issuance and sale of mortgage revenue bonds, the loan of
the net proceeds thereof to Malaipatty R. Rangaswami and Ranganayaki
Rangaswami, husband and wife (Rangaswami), for the acquisition and
construction of said facilities and the repayment of said loan by Rangaswami
ro be evidenced and secured by a promissory note of Rangaswami, will be of
benefit to the health, prosperity, economic stability and general welfare of
the City of Jeffersonville and its c~tizens and complies with the purposes
and provisions of IC 36-7-12.
SECTION 2. The forms of the Loan Agreement, including the Note
attached thereto, the Mortgage and Trust Indenture and the Bond Purchase
Agreemenn approved by the Jeffersonville Economic Development Commission are
hereby approved and all such documents shall be incorporated herein by
reference and shall be inserted in the minutes of the Common Council and kept
on file by the Clerk of the Council.
SECTION 3. The City of Jeffersonville shall issue its Economic
Development Mortgage Revenue Bonds (Rangaswami Project) in the aggregate
principal amount of Two Hundred Fifty Thousand Dollars ($250,000) for the
purpose of procuring funds to loan to Rangaswamf in order to pay the cost of
acquisition, construction, installation and equipping of the economic
developmen~ facilities, as more particularly set out in the Loan Agreement
and Mortgage and Trust Indenture incorporated herein by reference, which
Bonds will be payable as to principal, premium, if any, and interest solely
from the payments made by Rangaswami on a promissory note which will be
executed and delivered by Rangaswami to evidence and secure said loan and
from other sources under the Loan Agreement, or as otherwise provided in the
above-described Mortgage and Trust Indenture. The Bonds shall sever
constitute a general obligation of, an indebtedness of, or a charge against
the general credit of the City of Jeffersonville.
SECTION 4. The Mayor and Clerk-Treasurer are authorized and directed
to sell such Bonds to the purchasers set forth in the Bond Purchase Agreement
at a rate of interest on the Bonds not to exceed 65% of the Prime Commercial
Rate (defined in the Mortgage and Trust Indenture as the per annum rate of
interest established by The Chase Manhattan Bank, N.A., New York, New York,
as its Prime Rate as in effect on the date of delivery of the original Bonds
and on the first day of each calendar quarter thereafter until there are no
Bonds outstanding), provided that the interest rate payable on the Bonds
shall not exceed 14% per annum or be less than 10% per annum, and at a price
of one hundred percent (100%) of the principal amount thereof plus accrued
interest, if any.
SECTION 5. The Mayor and Clerk-Treasurer are authorized and directed
to execute the Loan Agreement, the Mortgage and Trust Indenture and the Bond
Purchase Agreement approved herein on behalf of the City of Jeffersonville
and any other documents which may be necessary or desirable to consummate the
transaction, including the Bonds authorized herein. The signatures of the
Mayor and Clerk-Treasurer on the Bonds may be facsimile signatures. The
Clerk-Treasurer is authorized to arrange for the delivery of such Bonds to
the purchasers thereof, payment for which will be made to the Trustee named
in the Mortgage and Trust Indenture.
SECTION 6. The provisions of this Ordinance and the Mortgage and Trust
Indenture securing the Bonds shall constitute a contract binding between the
City of Jeffersonville and the holders of the City of Jeffersonville,
Indiana, Economic Development Mortgage Revenue Bonds (Rangaswami Project),
and after the issuance of said Bonds, this Ordinance shall not be repealed or
amended in any respect which would 'adversely affect the rights of such
holders so long as any of said Bonds or the interest thereon remains unpaid.
SECTION 7. This Ordinance shall be in full force and effect from and
after compliance with the procedures required by law.
ADOPTED this ~ day of
ATTE ST:
C.~~~Richard Spencer, Jr~~ -
~. ., 1981.
Presented by me
~ day of
this
to the May~r of the City of Jeffersonville, Indiana, on
. , 1981.
C. ~i~h'ard Spencer, J
Clerk~Treasurer
1981.
Approved and signed by me on
this
_ day of .'
Richar~.~ L./ Vissi/ng, Mayor
City of Jeffersonville