307 Loan ResolutionPosition S
USDA-~mHA ~"`'''"~ CITY OF YELM FORM n~PROVE~
Form FmHA 1942-47 RESOLUTION NO. 307 OMB NO. 0575-0015
(Rev. 1-90) LOAN R,ESOLUI'lON
(Public Bodies) (REPLACES RESOLUTION NOS 236
&274)
A RESOLUTION OF THE YELM CITY COUNCIL
OF THE CITY OF YELM WASHINGTON
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A
PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR EXTENDING ITS
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE.
.WHEREAS, it is necessary for the CITY OF YELM
- (Prtblic BodYJ
(herein after called Association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of
O_NE MILLION•EIGHT HUNDRED TWENTY-SEVEN THOUSAND FIVE HUNDRED AND NO/100 DOLLA]
($1,x27,500.00)
pursuant to tl[e provisions of Chapter 35.67 RCW ;and
WHEREAS, the Association intends to obtain assistance from the Farmers Home Administration, United States Department of Agri-
culture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.) in the planning, financing, and supervision of such undertaking and the purchasing of bonds lawfully issued, in the event
that no other acceptable purchaser for such bonds is found by the Association:
NOW THEREFORE. in consideration of the premises the Association hereby resolves:
1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containing such
items and in suc}t forms as are required by State statutes and as are agreeable ar[d acceptable to the Government.
2. To refinance the unpaid balance, in whole or in part, of its bonds upon the request of the Govermment if at any time
it shall appear to the Government that the Association is able to refinance its bonds by obtaining a loan for such purposes
from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods
of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1983(c)).
3. To provide for, execute, and comply with Form FmHA 400-4, "Assurance Agreement," and Form FmHA 400-1, "Equal "
Opportunity Agreement," including an "Equal Opportunity Clause," which clause is to be incorporated in, or attached
as a rider to, each construction contract and subcontract involving in excess of $10,000.
4. To indemnify the Government for any payments made or losses suffered by the Goverrunent on behalf of the Association.
Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per-
missible source.
5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any cov-
enant or agreement contained herein or in the instruments incident to making or insuring the loan, the Covernnment at
its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and pay-
able, (b) for the account of the Association (payable from the 'source of funds pledged to pay the bonds or any other
legally permissible source), incur and pay reasonable expenses for repair, maintenance, and operation of the facility and
such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility,
repair, maintain, and operate or rent it. Default under the provisions of this resolution or any instrument incident to the
making or insuring of the loan may be construed by the Government to constitute default w[der.any other instrument
held by the Government and executed or assumed by the Association, and default under any such instrument may be
construed by the Government to constitute default hereunder.
6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, or permit others
to do so. wit.horrt the nr.it,r written consent of the Goverunent.
7. Not to defease the bonds, or to borrow money, enter into any contract or agreement, or otherwise incur any liabilities
for any purpose in connection with the facility (exclusive of normal maiitenance) without the prior written consent of the
Goverrunent if such undertaking would involve the source of funds pledged to pay the bonds.
8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government. Funds may be
deposited in institutions ins;lred by the State or Federal Government or invested in readily marketable securities backed
by the full faith and .credit of the United States. Any income from these accounts will be considered as revenues of the
system.
9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility
in good condition.
10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and
the establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and mainte-
nance, debt service and reserves may only be retained or used to make prepayments on the loan. Revenue cannot be used
to pay any expenses which are not directly incurred for the facility financed by FmHA. No free service or use of the
facility will be permitted.
Pubtic reporting burden (or this collection of irt(ormation is estimated to average 1 hour per response, including the time (or reviewing instntctions,
searching existing data sources, gathering and maintaining the data needed, and cornpleling and reviewing the collectiwt of in orrnation. Send comments
regarding this burden estimate or any other aspect of this collection of in (orrnalion, including suggestions (or reducing fIris burden, to Department of
Agriculture, Clearance O((icer, OIRd1, Room 404-[{', Washington, D. C. 20250; and to the O((ice of Illanagemeni and Budget, Paperwork Reduction
Project (OMB No. 0575-0015), Washington, D.C.20503. - -- ----
-2-
11. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Government.
l2. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to
provide for required audit thereof as required by the Government, to provide the Government a copy of each such audit
without its request, and to forward to the Govermnetit such additional information and reports as it may from time to
time require.
13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to
the property of the system so that the Government may ascertain that the Association is complying with the provisions
hereof and of the instruments incident to the making or insuring of the loan.
14. That if the Government requires that a reserve account be established and maintained, disbursements from that account
may be used when necessary for payments due on the bond if sufficient funds are not otherwise available. Witli the prior
written approval of the Government, funds may be withdrawn for:
(a) Paying the cost of repairing or replacing any damage to the facility caused by catastrophe.
(b) Repairing or replacing short-lived assets.
(c) Making extensions orunprovements to the facility.
Any time funds are disbursed from the reserve account, additional deposits will be required until the reserve account has
reached the required funded level.
15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain
FmHA's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which
are feasible and legal, such person shall leave a direct right of action against the Association or public body.
16. To comply with the measures identified in the Government's environmental impact analysis for this facility for the pur-
pose of avoiding or reducing the adverse enviromnental impacts of the facility's construction or operation.
17. To accept a grant in an amount not to exceed $ -~,...~n0, nnn nn
under the terms offered by the Government; that the CITY CLERK
and MAYOR of the Association are hereby authorized and empowered to take all action necessary
or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant; and
to operate the facility under the terms offered in said grant agreement(s).
The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless otherwise
specifically provided by the terms of such instrument, shall be binding upon the Association as long as the bonds are held or
insured by the Government or assignee. The provisions of sections 6 through 17 hereof may be provided for in more specific
detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance
should be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the
Association and the Govenunent or assignee
The vote was:
IN WITNESS WHEREOF, the
Yeas 5 Nays
CITY COUNCIL
0
Absent
0
of the
CITY OF YELM has duly adopted this resolution and caused it
to be executed by the officers below in duplicate on this 12th day of January , 19 .-.2~
. --T--~
(s~Al.)
Attest:
~~ (~ ~-} ''er, 6v
Title City Clerk
gy Kathryn M. Wolf
Title Mayor
Agnes P. Colombo
-3-
I the undersigned as
CERTIFICATION TO BE EXECUTED AT LOAN CLOSING
City Clerk ~,i-ti,P City _of Ye lm
hereby certify that the City Council of such Association is composed of
five members, of whom five , constituting a quorum, were present at a meeting thereof duly called and
held on the 12th day of January 1994 ~ and that the foregoing resolution was adopted at such meeting
by the vote shown above. I further certify that as of
the date of closing of the loan from the Farmers Home Administration, said resolution remains in effect and has not been rescinded or
amended in any way.
Dated, this 13th day of January ,- 19 94
Title City Clerk
# U.S.GP0:1990-0-71 7-014/22842