HomeMy Public PortalAboutORD09746 t
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!BILL N0.
INTRODUCED BY COUNCILMAN
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI , AUTHORIZING AND
DIRECTING THE MAYOR AND CLERK OF THE CITY TO ENTER INTO AN AGREE-
IMENT WITH CENTRAL TRUST BANK TO PROVIDE FINANCING FOR THE PURCHASE
OF FIRE APPARATUS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON,
MISSOURI , AS FOLLOWS:
SECTION 1. The Mayor and City Clerk of the City of
Jefferson, Missouri, are hereby authorized and directed, for and
® in the name of the City, to execute a written contract between
the City of Jefferson, Missouri, and Central Trust Bank for a
loan in the amount of Two Hundred Thirty Thousand Three Hundred
Thirty-Seven and No/100 Dollars ($230,337.00) , to be used in
the purchase of two fire trucks.
SECTION 2. Said contract shall be substantially the same
in form and content as that contract attached hereto and made
a part hereof as if fully incorporated herein.
SECTION 3. This Ordinance shall take effect and be in
force from and after its passage and approval.
Passed , /S. 19 8.L Approved
I
Aesidpftt .of the Crncll Mayor
ATTEST:
City Clerk
MW
LOAN AGREEMENT
THIS AGREEMENT is made and entered into by and between
CENTRAL TRUST BANK, hereinafter referred to as "Bank" , and the
CITY OF JEFFERSON, MISSOURI , a municipal corporation, herein-
after referred to as "City" . The parties hereby agree as
follows:
1. This agreement is entered into for the purpose of
financing the purchase of the following items of firefighting
equipment:
1-Emergency One Protector IV 1500 GPM Two Stage
Pumping Engine, with 750 Gallon Aluminum Water
Tank, built on a Hendrickson Model 1871 WA
Chassis.
1-Emergency One Protector IV 1500 GPM Two Stage
Pumping Engine, with 1500 Gallon Aluminum Water
Tank, built on a Hendrickson Model 1871 WA
Tandem Chassis.
2. The equipment will be purchased from Able Fire and
,s Safety Equipment, Inc. for $280 ,337. 00. At the time of delivery
of the equipment, the City will pay the entire purchase price,
the Bank will pay $230, 337.00 to the City, and the City will
execute the necessary documents, including lien documents, on
behalf of the Bank.
3. The City agrees to repay the loan amount of $230 ,337.00
plus interest within one year from the date the City receives
payment from the Bank. The interest rate shall be simple interest
based upon 65% of the prime rate as established by Mercantile
Trust Company, N.A. of St. Louis, Missouri. The initial prime
rate shall be determined at the date the loan is actually made,
and shall be adjusted quarterly thereafter. The prime rate used
shall not exceed 30%. Annual payments shall be made in two
installments. Six months from the date of the loan, the City
shall pay all accumulated interest. Twelve months from the
date of the loan, the City shall pay the remainder of the ac-
cumulated interest and the principal, or such portion of the
principal as may be due under the options listed below.
4. The City shall have the option at the end of each
note year to renew or extend the term of the loan for an
additional year under the same conditions, and at no additional
S cost. The City shall have the right to exercise four such re-
newals or extensions. If the City elects to renew or extend
the loan for another year, then the City shall pay the accumu-
lated interest -and one-fifth (1/5) of the original principal.
5. The City shall be allowed to pay all or any portion
of the principal at any time without penalty.
6. It is understood that the City Council may fail to
obtain appropriation or approval of the full amount of funds
necessary to make required payments hereunder during any fiscal
period subsequent to the current fiscal period. If the City
refuses to make any payment required under this agreement, then
the Bank's sole remedy is to seize the equipment, and sell or
lease the equipment to obtain the balance due. Any excess
r.
between the sale or lease price and the balance due (including
interest and normal expenses) shall be paid to the City.
7. The Bank, or its employees or agents, may inspect
any of the equipment at any reasonable time or place, and
for such purpose enter any building or place where said equip-
ment is located. Whenever requested by the Bank, the City shall
advise the Bank of the exact location of the equipment.
8. The City shall, for the term of this Agreement, at
its own expense, maintain casualty insurance with respect to
the equipment, insuring against customary risks with coverage
at all times not less than the amount of the unpaid principal
portion at the last preceding payment date. The insurance policy
shall name both the City and the Bank as insureds as their
respective interests may appear.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed in duplicate, one copy of which was
delivered to and retained by the Bank, and one copy of which
was delivered to and retained by the City, on this 6th day
of May 19 82
F
CENTRAL TRU T. BANK
By
Signature and Title
David L. Perdue, Vice President
CITY OF JEFFERSON, MISSOURI
MAYOR
CITY CLERK
Ssr
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