HomeMy Public PortalAbout046-1981 - Revenue Note - Indiana Tool CompanyORDINANCE NO. 46-1981
AN ORDINANCE AUTHORIZING THE CITY OF RICHMOND
TO ISSUE ITS "CITY OF RICHMOND ECONOMIC DEVELOPMENT
REVENUE NOTE, SERIES 1981 (INDIANA TOOL COMPANY
PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO
WHEREAS, the Richmond Economic Development Commission
has rendered its project report regarding the financing of
proposed economic development facilities for Indiana Tool
Company, a Michigan corporation, and the Executive Director
of the Area Plan Commission and the Superintendent of Schools
have commented favorably thereon; and
WHEREAS, the Richmond Economic Development Commission
conducted a public hearing and adopted a resolution on June
15, 1981, which resolution has been transmitted hereto, find-
ing that the financing of certain economic development facili-
ties for Indiana Tool Company, a Michigan corporation, complies
with the purposes and provisions of IND. CODE §§ 18-6-4.5-1
et seq. and that such financing will be of benefit to the
health and welfare of the City of Richmond and its citizens;
and
WHEREAS, the Richmond Economic Development Commission
has heretofore approved and recommended the adoption of this
form of Ordinance by this Common Council and has approved the
forms of and has transmitted for approval by this Common
Council the Note Purchase and Loan Agreement, the City of
Richmond Economic Development Revenue Note, the Promissory
Note of Indiana Tool Company, the Mortgage and Trust Indenture,
the Security Agreement, the Note Guaranty Agreement, and the
Collateral Assignment of Leases and Rents;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL
OF THE CITY OF RICHMOND, INDIANA, THAT:
Section 1. It is hereby found that the financing of
the economic development facilities referred to in the Note
Purchase and Loan Agreement approved by the Richmond Economic
Development Commission and presented to this Common Council,
the issuance and sale of a "City of Richmond Economic Develop-
ment Revenue Note, Series 1981 (Indiana Tool Company Project)"
(the "Revenue Note"), the loan of the proceeds of the Revenue
Note to Indiana Tool Company for the acquisition and construc-
tion and equipping of such facilities, the payment of the Reve-
nue Note by the payments of Indiana Tool Company, a Michigan
corporation, under the Note Purchase and Loan Agreement and the
Promissory Note of Indiana Tool Company, and the securing of
the Revenue Note by the granting of a first mortgage and securi-
ty interest on such facilities and equipment and by the guaranty
of the payment of principal and interest on the Revenue Note by
N. A. Woodworth Company, complies with the purposes and provi-
sions of IND. CODE §§ 18-6-4.5-1 et seq. and will be of bene-
fit to the health and welfare of the City of Richmond and its
citizens.
Section 2. The final forms of the Note Purchase and
Loan Agreement, Promissory Note of Indiana Tool Company,
Mortgage and Trust Indenture, Security Agreement and Collateral
Assignment of Leases and Rents, Note Guaranty Agreement, and
the Revenue Note approved by the Richmond Economic Development
Commission are hereby approved and all such documents (herein-
after referred to collectively as the "Financing Agreement"
referred to in IND. CODE §§ 18-6-4.5-1 et seq.), shall be in-
serted in the minutes of this Common Council and kept on file
by the Clerk.
Section 3. The City of Richmond shall issue the Reve-
nue Note in the total principal amount of One Million Two Hun-
dred Thousand Dollars ($1,200,000.00) for the purpose of pro-
curing funds to pay the costs of acquiring, constructing and
equipping the economic development facilities as more particu-
larly described in the Note Purchase and Loan Agreement incor-
porated herein by reference, which Revenue Note will be payable
as to principal, premium, if any, and interest solely from the
payments made by Indiana Tool Company, a Michigan corporation,
under the Note Purchase and Loan Agreement and the Promissory
Note of Indiana Tool Company and as otherwise provided in the
Financing Agreement. The Revenue Note shall never constitute
a general obligation of, or a charge against, the general credit
of the City of Richmond.
Section 4. The Mayor and Clerk are authorized and dir-
ected to sell the Revenue Note to the purchaser thereof at a
price not less than one hundred percent (100%) of the princi-
pal amount thereof and at the stated rate of interest not greater
than seventy percent (70%) of the Prime Rate per annum from the
date thereof to the Maturity Date. The Revenue Note shall bear
interest on overdue installments and in the event of a Determina-
tion of Taxability, at a rate per annum not to exceed one hundred
two percent (102%) of the Prime Rate. The terms "Maturity Date",
"Prime Rate" and "Determination of Taxability" shall have the
same meanings as assigned to them in the Financing Agreement.
Section 5. The Mayor and Clerk are authorized and dir-
ected to execute the documents constituting the Financing Agree-
ment approved herein, and their execution is hereby confirmed,
on behalf of the City of Richmond and any other document which
may be necessary or desirable to consummate the transactions
contemplated thereby. The Mayor and Clerk are authorized to
arrange for the delivery of the Revenue Note to the purchaser
thereof, payment for which will be made to the Trustee named in
the Mortgage and Trust Indenture.
Section 6. The provisions of this Ordinance and the
Financing Agreement securing the Revenue Note shall constitute
a contract binding between the City of Richmond and the holder
of the Revenue Note and after the issuance of the Revenue Note,
this Ordinance shall not be repealed or amended in any respect
which would adversely affect the rights of the holder of the
Revenue Note so long as the Revenue Note or the interest thereon
remain unpaid.
Section 7. The City of Richmond elects to have the
provisions of Section 103(b)(6)(D) of the Internal Revenue
Code of 1954, as amended, apply to the Revenue Note and the
Mayor is hereby authorized, empowered and directed to cause
to be filed such election with the Internal Revenue Service
for and on behalf of the City of Richmond.
Section 8. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
Section 9. This Ordinance shall be in full force and
effect from and after its passage and signing by the Mayor.
PASSED AND ADOPTED by the Common Counci of the City of
Richmond, Indiana, this day of 1981.
President of Common Council
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City Clerk
PRESENTED by me, JoEllen Trimble, City Clerk, to e Mayor of
the City of Richmond, Indiana, this � day of 1981.
City Clerk
APPROVED by me, Clifford J. Dickman, Aa or of the City of
Richmond, Indiana, this _L61- of t_ 1981.
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A TE T:
City Clerk