Loading...
69-HH RESOLUTION No. 69- ~ ~ WHEREAS, the City Council of the City of Boynton Beach, Florida did, on September 26, 1966, adopt Resolution No. 66-SS providing for issuance of a $160,000.00 revenue certificates of said City to provide for construction of a certain storm drainage facility within the limits of said municipality; and WHEREAS, the maximum interest rate to be paid in connection with issuance of said certificates was established at 4.75% per annum, all pursuant to letter of committment to purchase subject certificates issued by the First Bank and Trust of Boynton Beach, Florida; and WHEREAS, by Final Judgment rendered by the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida on November 7, 1966,lhe issuance of subject certificates in accordance with the above and foregoing terms was validated and confirmed; and WHEREAS, due to unavoidable delays in commencement of construc- tion of said project, the above committment to purchase subject certificates at an interest rate of 4.75% has been withdrawn and an amended committment issued at a current interest rate of 5.5% per annum; and WHEREAS, it is deemed in the best interest of the City that subject amended commitirnent to purchase be accepted; NOW THEREFORE, be it resolved by the City Council of the City of Boynton Beach, Palm Beach County, Florida that lhe terms of Resolution No. 66-SS previously adopted by this Council providing for payment of a maximum interest rate of 4. 75% per annum with regard to issuance of revenue certificates hereinabove described, be and the same are hereby amended to authorize payment of a maximum interest rate of 5.5% per annum, all in accordance with the lerms of amended committment lo purchase, issued by The First Bank and Trust of Boynton Beach, Florida, a copy of which is attached hereto and hereby made a part hereof, and further that the City Attorney be and he is hereby authorized to petition the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, for entry of an amended final judgment in prior validation proceedings referred to hereinabove authorizing the above and foregoing increase in maximum interest rate. PASSED AND ADOPTED this day of November, A.D. 1969. CITY OF BOYNTON BEACH, FLORIDA ATTEST: C o~ncilrn an /..~ AND TRUST PO..~T OFFICE ORAWEE 550 BOYNTON BEACH,, FLORIDA 33435 George t. Wilde September Z6, 1969 Mr. Orady Courtney City Manager ~4unicipal Building Loynton Beach, Florida 33435 Re: $160,000.00 loan Dear Grady: \,Ye wish to advise that we are prepared to proceed with the finalization o: our loan to the City in amount of $'160,000~' 00. However, it is the decision of our Loan Committee that, due to current economic conditions, ti'~e interest rate must be at 521/2%. As you will recall, in my letter of Septenaber 5, 1969, i made mention of the fact that our original con~rnit- n~ent was issued in May, 1966, and that the loan transaction was not consummated by the City and because of the considerable time lapse the con~mitment would be void and the City was not to utilize the funds. i discussed the situation with our attorney, Mr. David W. McKay, and accordingly it is his opinion it would be necessary that validation proceedings would be required through the Circuit Court as it relates to the interes[ rate. The validation proceedings of November 7, 1966, provided for an ir~terest rate of 4.75%, and it is Mr. McKay's feelings that in order to fully protect the Bank it will be necessary that we have the interest factor established through validation proceedings. It is hoped that these proceedings could be handled in a sumrna'ry manner in order to eliminate the possibility of a prolonged period of time and at a minimum of expense. ~' am sure the City Attorney could render you an opinion regarding this situa- tion. Ir~ addition to the foregoing it will also be n~cessary for th~ City to adopt a new resolution whereby all cigarette tax revenues Collected by the State of Florida are to be assigned to the Bank as Principal collateral for this loan. This will be necessary in accordancD with Section Z10. Z0(a3), of Florida Statute s. Upon resolving the two items mentioned above we will be in a position to close this transaction. If you have an~ further question, please contact n~.~. !¥_ind regards. OIW/dec very truly, 'The Bank With the Clock on Topi"