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HomeMy WebLinkAboutResolution No. 2394 RESOLUTION NO. 2394 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY PROVIDING FOR THE ISSUANCE OF A NEGOTIABLE NOTE IN THE AMOUNT OF ONE HUNDRED THOUSAND DOLLARS ($100,000.00) 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 Capital National Bank has offered to lend the sum of One Hundred Thousand Dollars ($100,000.00) at an interest rate of 5% per annum to apply upon a current Certificate of Deposit listed at 64% to be made payable on or before May 22, 1970. (5% interest rate will apply on C. D. in lieu of 64% for eleven days only.) 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 One Hundred Thousand Dollars ($100,000.00) and shall bear interest at the rate of 5% per annum to apply on a Certificate of Deposit payable on or before June 30, 1970. There hereby is reserved ,�. to the City the right to call and redeem such note prior to maturity at the option of the City, in which event the interest due to date on the amount so paid shall be paid along with the payment of principal. No notice need by given prior to the exercise of such right by the District. SECTION 3. The note shall be payable from taxes, income, revenue, cash receipts and other money received by the City during the fiscal 1 - 000`001$ J o uaoj stuff, axaw o4 Aaussaoau awooaq 4ou pip 1 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 Capital National Bank, 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 Capital National Bank, or order, on or before June 30, 1970, the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) with interest thereon, payable at the maturity thereof, at the rate of 5% per annum from the date hereof. Principal and interest are payable in lawful money of the United States of America at the Capital National Bank, 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 of the City and to the extent not paid from said moneys, shall be paid -2- 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. f.f„ �L. ( MAYOR ATTEST: ' 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 -3-