HomeMy Public PortalAbout018-1988- ORDINANCE OF THE CITY RELATING TO THE AMENDMENT OF BOND DOCUMENTS AND THE SUBSTITUTION OF AN AMENDED BOND AND AN AMENDED NOTEAN ORDINANCE OF THE CITY OF RICHMOND, INDIANA RELATING TO THE AMENDMENT OF BOND
DOCUMENTS AND THE SUBSTITUTION OF AN AMENDED BOND AND AN AMENDED NOTE IN
CONNECTION WITH ITS $7,000,000 ECONOMIC DEVELOPMENT REVENUE BOND (PALLADIUM
PUBLISHING CORPORATION PROJECT), 1983 SERIES A.
WHEREAS, the City of Richmond, Indiana (the "City") is authorized under I.C. 36-7-12
(the "Act") to issue revenue bonds for the purpose of financing economic
development facilities, the funds from said financing to be used for the
acquisition, construction and equipping of said facilities, and said facilities to be
either sold or leased to a company or directly owned by a company; and
WHEREAS, pursuant to a loan agreement, dated as of November 1, 1983 (the "Loan
Agreement") between the City and the Company, a bond purchase agreement dated
as of November 1, 1983 (the "Bond Purchase Agreement") by and among the
City, the Investor and the Depositary, an assignment dated as of November 1,
1983 (the "Assignment") from the City to the Investor, a bank bond purchase
agreement, dated as of November 1, 1983 (the "Bank Bond Purchase
Agreement") by and among the City, the Bank and the Depositary and a guaranty
agreement, dated as of November 1, 1983 (the "Guaranty") between Gannett
and the Investor (said documents hereinafter referred to as the "Bond
Documents"), the City issued its Bond in the aggregate principal amount of
$7,000,000 and lent the proceeds from the sale of the Bond to the Company and,
in return, the Company issued its promissory note (the "Note"); and
WHEREAS, the City, the Company, the Investor, the Depositary, the Bank and Gannett desire,
pursuant to an Agreement of Amendment dated as of March 1, 1988 between the
City, the Company the Investor, the Depositary, the Bank and Gannett to modify
certain terms and provision of the outstanding Bond and the Note relating to the
interest rate and substitute a new Bond and a new Note each of which contain the
amended interest rate calculation provision and to amend and modify the Bond
Documents to, among other things, reflect the new interest rate provision; now,
therefore,
NOW THEREFORE BE IT ORDAINED by the Common Council of the City of Richmond, Indiana
that:
Section 1. Capitalized words and terms used in this ordinance and not defined herein shall
have the same meanings in this ordinance as such words and terms are given in
the Bond Documents.
Section 2. The City hereby approves the substitution of a new Bond and a new Note, both of
which contain the amended interest rate calculation provision. Said amended
interest rate calculation provision IS intended to protect the Investor's effective
yield. The Bond and the Note shall bear interest from its date of delivery to the
Investor to the maturity thereof at the rate of 72% of the Prime Rate per annum
subject to such changes as set forth in the Bond Purchase Agreement as modified
by the Amendment.
Section 3. The Common Council hereby approves the form of the Agreement that has been
presented to the Common Council at this meeting, and the Mayor or the Vice
Mayor and the Clerk or any Deputy Clerk of the Common Council are hereby
authorized to execute and deliver the Agreement, in any number of signed
counterparts for and on behalf of the City in substantially such form with such
changes therein, additions thereto and omissions therefrom as those executing
the Agreement shall approve, their execution and delivery thereof constituting
the conclusive approval of the Common Council of any changes therein, additions
thereto or omissions therefrom.
Section 4. The Common Council hereby approves the form of the Bond presented to the
Common Council at this meeting in the form attached as Exhibit A to the
Agreement. The Bond shall be in substantially the form and shall have the terms
and provisions as set forth in the Agreement. The Mayor or the Vice Mayor and
the Clerk or any Deputy Clerk of the Common Council are hereby authorized to
execute and deliver the Bond for and on behalf of the City in substantially such
form with such changes therein, additions thereto and omissions therefrom as
those executing the Bond shall approve, their execution and delivery thereof
constituting the conclusive approval of the Common Council of any changes
therein, additions thereto or omissions therefrom.
Section 5. The Common Council hereby approves the Note presented to the Common Council
at this meeting in the form attached as Exhibit B to the Agreement. The Common
Council hereby authorizes the endorsement without recourse and pledge of the
Note to the Investor in substantially the form of the endorsement and pledge.
appearing on the form of the Note, as security for the Bond.
Section 6. The Mayor, the Clerk, and the presiding officer of the Common Council, all of the
City, are authorized and directed to take such action and to execute and deliver
any other documents, certificates, undertakings, agreements or other
instruments as they, with the advice of counsel, may deem necessary or
appropriate to effect the transaction contemplated by the Agreement.
Section 7. This Ordinance shall take effect immediately upon its passage.
PASSED AND ADOPTED by the Common Council of the City of Richmond, Indiana this, day
of ___ �L2d, cil- , 1988.
President of Common Council
ATTEST:
City Clerk a '
PRESENTED by me to the Mayor of the City of Richmond, Indiana this _ 40, t-4 day of
7iiCvu/- ,1988.
APPROVED by me, Frank H. Waltermann, Mayor of the City of Richmond, Indiana this ,Lo day
of 1988.
Mayor
ATTEST: � ti��'
City Clerk
CLERK'S CERTIFICATF,
State of Indiana, County of Wayne, ss:
I, Mary Merchanthouse, Clerk of the City of Richmond, Wayne County, and State of
Indiana, do hereby certify that the above and foregoing is a full, true, complete and correct copy
of the Ordenance No. 18-1998 of the CommoU Council of the City of Richmond, Indiana
IN THE MATTER OFdocuments-and substitution of amended j,ond and note
in connectign with FennomFe DevelopUlclit Revenue Bond,-; (Palladium PuhUshing CorpQration)
as the some fully appears of record and on file in my office in the Municipal Building,
Richmond, Indiana, Book_1,_ Page
WITNESS my hand and seal of the City of Richmond, Indiana this 8th day of March, 1989.
Mary Merchanthouse, Clerk
Richmond, Indiana