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RUS BULLETIN I780-27 FORMAPPROVED


(Autornated8-97) #73 O M B .N o . 0 5 7 5 - 0 0 1 5
LOAN RESOLUTION
@ublicBodies)

A RESOLUTIONOF THE CityCouncil

OF THE PelicanBay, City of


AUTHORIZINGAND PROVIDTNGFORTHE INCURRENCE FORTHE PURPOSE
OF INDEBTEDNESS OF PROVIDINGA
ENLARGING,IMPROVING,AND/OREXTENDINGITS
PORTIONOF THE COSTOF ACQUIRING,CONSTRUCTING,
Constructionof a Waste Water CollectionSystem
TO SERVE.
FACILITY TO SERVEAN AREA LAWFULLY WITHIN ITS JURISDICTION

for the
WHEREAS,it is necessary Pelican Bav, City of
(Public Body)
(herein after called Association) to raise a portion ofthe cost ofsuch undertaking by issuance ofits bonds in the principal amount of

ONE MILLIONTHIRTEENTHOUSANDAND XX / 1OO


to the provisionsof Statutes of the State of Texas
Dursuant ; and
WHEREAS, the Association intendsto obtain assistance from the United StatesDepartmentof Agriculture, (hereincalled
the Government)acting under the provisionsof the ConsolidatedFarm and Rural DevelopmentAct (7 U.S.C. l92l et seq.)
in the planning. financing, and supervisionofsuch undertakingand the purchasingofbonds lawfully issued,in the event that
no other acceptablepurchaserfor such bonds is found by the Association:
NOW THEREFORE, in considerationof the premisesthe Associationherebyresolves:
l. To have preparedon its behalfand to adoptan ordinanceor resolutionfor the issuanceofits bondscontainingsuch
items and in such forms as are requiredby Statestatutesand as are agreeableand acceptableto the Government.
2. To reflnancethe unpaid balance,in rvholeor in part, of its bonds upon the requestof the Governmentif xt any time
it shall appearto the Governmentthat the Associationis able to refinanceits bondsby obtaining a loan for such purposes
from responsiblecooperativeor privatesourcesat reasonableratesand termsfor loans tbr similar purposesand periods
of time as required by section333(c) of said ConsolidatedFarm and Rural DevelopmentAct (7 U.S.C. 1983(c)).
3. To provide for, execute,and comply with Form RD 400-4, "AssuranceAgreement,"and Form RD 400-1, "Equal
Opportunity Agreement," including an "Equal OpportunityClause,"rvhich clauseis to be incorporatedin. or attached
as a rider to, eachconstructioncontractand subcontract involvingin excessof$10,000.
4. To indemniiy the Governmentfor any paymentsmadeor lossessufferedby the Governmenton behalf of the Association.
Such indemnification shall be payablefrom the samesourceoffunds pledgedto pay the bonds or any other legally
permissiblesource.
5. That upon default in the paymentsofany principaland accruedintereston thc bondsor in the performanceofany
covenantor agreementcontainedhereinor in the instrumentsincidentto making or insuringthe loan, the Covernment
at its option may (a) declarethe entireprincipal amountthen outstandingand accruedinterestimmediatelydue and
payable,(b) for the accountof the Association(payableliom the sourceof funds pledgedto pay the bondsor any other
legally permissiblesource),incur and pay reasonableexpensesfor repair,maintenance,and operationofthe facility
and such other reasonableexpensesas may be necessaryto cure the causeofdetbult, and/or(c) take possessionofthe
ranirit" ra-oi"raintain, and operateor rent it. Default underthe provisionsof this resolutionor any instrumentincident to
agvr r r r J,

the making or insuring of the loan may be construedby the Governmentto constitutedefaultunder any other instrument
held by the Government and executedor assumedby the Association,and default underany such instrumentrnay be
construedby the Governmentto constitutedefaulthereunder.
6. Not to sell, transfer,lease,or otherwiseencumberthe t-acilityor any portion thereof,or interesttherein,or permit others
to do so, rvithout the prior written consentof the Government.
7. Not to defeasethe bonds, or to borrorvmoney,enter into any contractoragreement,or otherr.vise incur any liabilities
ibr any purpose in connectionwith the facility (exclusiveof normal maintenance)without the prior written consentof the
Government ifsuch undertakingwould involve the sourceoffunds pledgedto pay the bonds.
8. To place the proceedsofthe bondson depositin an accountand in a mannerapprovedby the Government.Fundsmay be
depositedin institutions insuredby the Stateor FederalGovernmentor investedin readily marketablesecuritiesbacked
by the full faith and credit of the United States.Any incomefrom theseaccountswill be consideredas revenuesof the system.
9. To comply with all applicableStateand Federallaws and regulationsand to continuallyoperateand maintainthe t'aciliry
in good condition.
10. To provide fbr the receiptofadequaterevenuesto meetthe requirementsofdebt service,operationand maintenance,and
the establishmentof adequatereserves.Revenueaccumulatedover and abovethat neededto pay operatingand mainte-
nance,debt service and reservesmay only be retainedor usedto make prepaymentson the loan. Revenuecannotbe used
to pay any expenseswhich are not directly incurredtbr the facility financedby USDA. No free serviceor use of the
fhcility will be permitted.

scurc h it, g ax i.i itrg datq .sources,

Agricullure,()leorance{)1fccr'0llW'I|oou.]0.1.||/'
I'ntject (OMI) No. 0575-0015),Washington.
DC 2050J.
-2-
I l. To acquircand maintainsuchinsuranceand fidelity bond covcrageas may be requiredby the Government.
12. To establishand maintain such books and recordsrelating to th€ operationof the facility and its financial aff'airsand to
provide for requiredaudit thereofas requiredby the Government,to providethe Governmenta copy ofeach such audit
without its request,and to forward to the Governmentsuch additionalinformationand reportsas it may tiom time to
time require.
13. To providethe Govemmentat all reasonable timesaccessto all booksandrecordsrelatingto the facility and accessto
the property of the systemso that the Government may ascertainthat the Associationis complying with the provisions
hereofand of the instruments incidentto the makingor insuringof the loan.
14. That ifthe Governmentrequiresthat a reserveaccountbe established,disbursements frorn that account(s)may be used
when necessarytbr paymentsdue on the bond if sufficient t'undsare not otherrviseavailableand prior approvalof the
government is obtained. Also, rvith the prior written approvalof the Government,f-undsmay be rvithdrawnand used
tbr such things as emergencymaintenance,extensionsto facilities,and replacementofshort lived assets.
15. To provide adequateserviceto all personswithin the servicearealvho can feasibly and legally be servedand to obtain
USDA's concurrenceprior to refusingnew or adequateservicesto suchpersons.Upon failure to provide serviceswhich
are feasibleand legal, such personshall have a direct right ofaction againstthe Associationor public body.
16. To comply with the measuresidentified in the Govemment'senvironmentalimpactanalysisfor this facility lbr the pur-
pose ofavoiding or reducingthe adverseenvironmentalimpactsofthe facilify's constructionor operation.
17. To accepta grant in an amount not to exceed $ $ 972,000.00

thatthe
underthetermsofferedby theGovernment; Mayor
and Citv Secretary ofthe Associationare herebvauthorizedand emoorveredto take all action
necessaryor appropriatein the executionofall written instrumentsas may be requiredin regardto or as evidenceofsuch
grant; and to operatethe facility'underthe terms otfered in said grant agreement(s).

The provisions hereof and the provisionsof all instrumentsincident to the making or the insuring of the loan, unlessothenvise
specifically provided by the terms ofsuch instrument, shall be binding upon the Associationas long as the bonds are held or
insuredby the Governmentor assignee. The provisionsofsections6 throughlT hereofmaybe providedfor in more specitic
detail in the bond resolutionor ordinance;to the extent that the provisionscontainedin suchbond resolutionor ordinance
shouldbe found to be inconsistent with the provisionshereot. theseprovisionsshallbe construedas controllingbetrveenthe
Associationand the Governmentor assisnee.

The vote rvas: Yeas Nays o Absent

IN WITNESS WHEREOF, thc Citv Gouncil ofthe

PelicanBav. Citv of has dulv adootedthis resolutionand causedit

to be executedby the otficersbelow in duplicateon this 9 rh lay of February , 1999

PelicanBay, City of

(sEAL) By
i
Attest:
/
Ti tl e
irz--n
(t'*
"

Title City Secretary


-J-

CERTIFICATION TO BE EXECUTEDAT LOAN CLOSING

as MaYor
I, the undersigned, of the Pelican Bay, City of

herebycertify that the City Council of such Association is comoosedof

members,
of whom 5 a quorun,w€represent
constituting at a meetingthereofduly calledand

held on the 9rh dayof Februarv , 1999; andthatthe tbregoingresolutionwasadoptedat suchmeeting

by thevoteshownabove,I f'urthercertifythatasof 9 Februa rw . f qqg


the date of closing of the loan from the United StatesDepartmentof Agriculture,said resolutionremainsin effect and has not been
rescindedor amendedin anv wav.

gth
Dated,this dayof February, 1999

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