HomeMy WebLinkAboutResolution No. 2393 RESOLUTION NO. 2393
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DOWNEY PROVIDING FOR THE ISSUANCE OF A NEGOTIABLE
NOTE IN THE AMOUNT OF TWO HUNDRED THOUSAND DOLLARS
($200,000.00)
WHEREAS, the City may borrow for any purpose for which it is
authorized to expend money, including current expenses, capital
expenditures and the discharge of any obligation or indebtedness; and
WHEREAS, the City of Downey, pursuant to the provisions of
Article 7.6, Chapter 4, Part 1, Division 2, Title 5 of the Government
Code (Sections 53850 et seq.) is desirous of borrowing for the purposes
authorized by said article; and
WHEREAS, the Bank of Downey has offered to lend the sum of
Two Hundred Thousand Dollars ($200,000.00) at an interest rate of 7%
per annum upon a negotiable note to be made payable on or before
June 30, 1970.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds that the taxes, income,
revenue, cash receipts and other money to be received by the City
during the fiscal year commencing July 1, 1969 and ending June 30, 1970
are estimated to be in excess of Five Million Dollars ($5,000,000.00).
There are other notes of the City authorized but not outstanding and
the amount of the note authorized to be issued by this Resolution and
other notes authorized does not exceed 85% of said estimated taxes,
income, revenue, cash receipts and other money.
SECTION 2. The note shall be dated as of the date of delivery,
shall be in the amount of Two Hundred Thousand Dollars ($200,000.00)
and shall bear interest at the rate of 7% per annum, payable on or
before June 30, 1970. There hereby is reserved to the City the right
to call and redeem such note prior to maturity at the option of the
City, in which event the interest due to date on the amount so paid
shall be paid along with the payment of principal. No notice need be
given prior to the exercise of such right by the District.
SECTION 3. The note shall be payable from taxes, income,
revenue, cash receipts and other money received by the City during the
fiscal year 1969 -1970. Said money being hereby pledged to repay said
note, provided however, that if said money, or any portion thereof,
when received by the City will be encumbered for a special purpose
other than the repayment of said note then pursuant to Section 53586
of the Government Code an equivalent amount of the proceeds of the
note shall be set aside for and used for such special purpose. The
note, with interest thereon, may be paid from any other money of the
City lawfully available therefor.
SECTION 4. The principal and the interest on the note shall
be payable in lawful money of the United States of America at the
Bank of Downey, Downey, California.
SECTION 5. The note shall be signed by the City Manager
of the City and the Treasurer and shall be in substantially the
following form:
CITY OF DOWNEY
NEGOTIABLE NOTE
NO.
FOR VALUE RECEIVED, the City of Downey, a municipal corporation,
California, organized and existing under and by virtue of the
Constitution of the State of California, promises to pay to BANK OF
DOWNEY, or order, on or before June 30, 1970, the sum of TWO HUNDRED
THOUSAND DOLLARS ($200,000.00) with interest thereon, payable at the
maturity thereof, at the rate of 7% per annum from the date hereof.
Principal and interest are payable in lawful money of the United States
of America at the Bank of Downey, Downey, California. The City reserves
the right to recall and redeem such note prior to its maturity, at the
option of the City, in which event the interest due to date on the
note shall be paid along with the payment of the principal. No notice
need be given prior to the exercise of such right by the City.
The principal of and the interest on this note are payable from
taxes and income to be received during the fiscal year 1969 -1970, said
money being pledged for the payment of this note and the interest
thereon. Notwithstanding said pledge, this note is a general obligation
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of the City and to the extent not paid from said moneys, shall be paid
with interest thereon from any other moneys of the City lawfully
available therefor.
IT HEREBY IS CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required by law to exist, happen and be performed
precedent to and in the issuance of this note have existed, happened
and been performed in due time, form and manner as required by law,
that the amount of this note, together with all other indebtedness of
the City, does not exceed any debt limit prescribed by the laws or
Constitution of the State of California.
IN WITNESS WHEREOF, said City of Downey, a municipal corporation,
has caused this note to be signed by the City Manager and the Treasurer,
sealed with the seal of the City and has caused this note to be dated
the day of , 1970.
City Manager, City of Downey
Treasurer, City of Downey
SECTION 6. The City Clerk shall certify to the adoption of
this Resolution.
APPROVED AND ADOPTED this llth day of May , 1970.
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MAYOR
ATTEST:
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CITY CLERK
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the City Council of the City of Downey at a regular meeting thereof held
on the llth day of May, 1970, by the following vote:
AYES: 5 Councilmen: Winton, Ferris, Morton, Jennings, Corbin
NOES: 0 Councilmen: None
ABSENT: 0 Councilmen: None
< ((( CITY CLERK
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