HomeMy WebLinkAbout2009-11 Full Faith & Credit Agrmt
RESOLUTION NO.aoif1- II
A RESOLUTION OF THE CITY OF ASHLAND, JACKSON COUNTY,
OREGON AUTHORIZING A FULL FAITH AND CREDIT FINANCING
AGREEMENT AND RELATED MATTERS.
WHEREAS, the City Council of the City of Ashland, Jackson County, Oregon (the
"City") is authorized by Oregon Revised Statutes Section 271.390 to enter into financing
agreements to fmance real or personal property that the City Council determines is needed; and
WHEREAS, the City has paid for capital projects for the City's water and wastewater
systems (collectively, the "Projects"); and
WHEREAS, the City Council hereby determines that the Projects are needed, and that it
is desirable to refmance the Projects pursuant to ORS 271.390;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Ashland, Oregon as follows:
Section 1. Loan Agreement Authorized.
The City is hereby authorized to enter into one or more fmancing or loan agreements in an
aggregate principal amount of not more than $3,000,000 (each a "Loan Agreement") pursuant to
ORS 271.390. Loan proceeds shall be used to refmance the Projects and to pay costs associated
with each Loan Agreement. The City Administrator, the Finance Director, or the person
designated by the City Administrator to act as Finance Director under this resolution (each a "City
Official") are each hereby authorized, on behalf of the City and without further action by the
Council, to:
(1) Issue one or more Loan Agreements;
(2) Determine the final principal amount, interest rates, payment dates, prepayment rights and
all other terms of each fmancing;
(3) Negotiate, execute and deliver a note to evidence amounts due under each Loan
Agreement;
(4) Negotiate and execute each Loan Agreement with Bank of America, N.A or any other
commercial bank. Subject to the limitations of this resolution, each Loan Agreement may
be in such form and contain such terms as the City Official may approve;
(5) Determine whether each Loan Agreement will bear interest that is excludable from gross
income under the Internal Revenue Code of 1986, as amended (the "Code"), or is
includable in gross income under that Code. If a Loan Agreement bears interest that is
excludable from gross income under that Code, the City Official may enter into covenants
to maintain the excludability of interest on that fmancing from gross income;
Page 1 - Resolution No. __ FF&C Financing Agreement
(6) Designate each Loan Agreement as a "qualified tax-exempt obligation" pursuant to
Section 265(b )(3) of the Code if applicable;
(7) Execute and deliver any other certificates or documents and take any other actions that the
City Official determines are desirable to carry out this resolution.
Section 2. Security.
Each Loan Agreement shall constitute an unconditional obligation of the City, which is
payable from all legally available funds of the City. The City Official may pledge the City's full
faith and credit and taxing power within the limitations of Sections 11 and 11 b of Article XI of the
Oregon Constitution, and any and all of the City's legally available funds, to make the payments
due under each Loan Agreement.
Section 3. Repeal of Previous Resolutions.
The City hereby repeals Resolution Nos. 2008-37 and 2008-40.
Section 4. Effective Date.
This resolution was duly PASSED and ADOPTED this 21 st, day of April, 2009, and takes
lzgb~
Barbara Christensen, City Recorder
SIGNED and APPROVED this 21 st day of April, 2009.
Page 2 - Resolution No. __ FF&C Financing Agreement