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HomeMy WebLinkAbout2001-02~RUS BJLLETIN 1780-27 FORM APPROVED (Automated 8-97) Resolution 2 0 01- 0 2 oMS. No. os7s-oo is ' LOAN RESOLUTION (Public Bodies) A RESOLUTION OF THE Town Council • OF THE Town of Pulaski AUTHORIZING AND PROVIDIIJG FOR THE INCURRENCE OF II~IDGBTFDNESS FOR T1~ PURPOSE OF PROVIDING A PORTION OF THE COST OE ACQUIItING, CONSTRUCTING. ENL.ARGIIYG, INlPRO ViNG, AND/OR EXTENDING RS Water System FACILITY TO SERVE A!N AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the Town Of Pulaski (Public Body) (herein after called Association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of FOUR HUNDRED ONE THOUSAND SIX HUNDRED AND XX / 100 ? ,~ pursuant to the provisions of Title 15~of the Code of VA of 1950, as amended ;and WHEREAS, the Association intends to obtain assistance from the United States Department of Agriculture, (herein called the Govemment) 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 such forms as are required by State statutes and as are agreeable and acceptable to the Govemment. 2. To refinance the unpaid balance, in whole or in part, of its bonds upon the request of the Govemment if at any time it shall appear to the Govemment that the Association is able to refinance its bonds by obtaining a loan Tor such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as cequired by section 333([) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1983([)). 3. To provide for, execute, and comply with Form RD 400-t, "Assurance Agreement," and Forth RD 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 S 10,000. • 4. To indemnify the Govemment for any payments made or losses suffered by the Govemment on behalf of the Association. Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legally permissible source. ~. That upon default in the payments of any principal and accrued interest on the bonds or in the perfortnancc of any covenant or agreement contained herein or in the instruments incident to making or insuring the loan, the Govemment at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and payable, (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 t'or repair. maintenance, and operation of the facility and such other reasonable expenses as may be necessary to cure the cause o[ 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 Govemment to constitute default under any other instrument held by the Govemment 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, ICasC, or otherwise encumber the facility or any portion thereof. or interest therein, or permit others to do so. without the prior written consent of the Govemment. 7. Not to defease the bonds, or to borrow money, enter into anv contractor agreement. or otherwise incur any liabilities for any purpose in connection with the facility (exclusive of normal maintenance) without the prior written consent of the Government 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 Govemment. Funds may be deposited in institutions insured 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 re¢ulations 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 facdity_ financed by USDA. No free service or use of the facility will be permitted. • Public reparnrtg burden for this collection ~ irrfbrmation is estimated to average l hour per response. including the rime jot reviewing instructions, searclnng ~ssstireg data source.[ gathennq arx! matntsmng the elata needed and completing and reviewing the collecaort o! in/ormanan Senef comments regarding this burden esama# ur anv other ~sspect of rhts co!lectaon o/'injormarion rncludinq suggestions%or reducing thr burdsn to Department of .i gncu/lure. Claarance Officer, OIRtI Rohm s0•t-fV, 4VasMngtart OC ?Oi50: oral to th¢ Office aj:Llanagement art! Budget Papen.~ork Reducaan Prolecr (OhB Na US?5-001 Sl. {Vasiengton OC ?OSOi. -2- 11. To acquire and maintain such insurance and fidelin~ bond coverage as may be required by the Government. 12. To establish and maintain such books and records relating to the operation of the facility and its tinattcial atlairs 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 Government 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, disbursements from that account(s) may be used when necessary for payments due on the bond if sutTicient funds are not otherwise available and prior approval of the government is obtained. Also, with the prior written approval of the Government, fwids may be withdrawn and used for such things as emergency maintenance, extensions to facilities, and replacement of short lived assets. 1 ~. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain USDA's concurrence prior to refusing nevv or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shall have 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 environmental impacts of the facility's construction or operation. 17. To accept a grant in an amount not to exceed ~ $ 0.00 under the terms offered by the Government; that the 1-~-~=~~ ~ ~ Jq-{ e~.Jr` and 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 oTTered 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 Government or assignee. The vote was: Yeas ~ Nays ~ Absent • IN WITNESS WHEREOF, the TOWn COUnCiI of the Town of Pulaski has duly adopted this resolution and caused it to be executed by the ot~icers below in duplicate on this ~ day of R ~ ~~f ~ G(.~ Town of Pulaski (SEAL) By -' ar ano~n~ ~~"" onager Attest: Title ~ ~ W /r]vi't-6 62C- ~_ ~ ~ Title ~X ff ~(~ ~_l .ne ~,~r,.Cx C -3- CERTIFICATION TO BE EXECUTED AT LOAN CLOSING • I, the undersigned, as ~~.~IC ~~ of the Town of Pulaski hereby certify that the ~i/TOWn COUnCt) of such Association is composed of _T members, of whom 1 constituting a quorum, were present at a meeting thereof duly called and held on the ID ~ day of ~ - :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 United States Department of Agriculture, said resolution remains in etTect and has not been rescinded or amended in any way. Dated, this day of Title • • Virginia RUS Instruction 1750 Exhibit B Attachment 1 • RESOLUTION OF GOVERNING BODY OF TOWN OF PULASKI • The governing body of the Town of Pulaski, consisting of members, in a duly called meeting held on the day of at which a quorum was present RESOLVED as follows: BE IT HEREBY RESOLVED that, in order to facilitate obtaining financial assistance from the United States of America, acting by and through the Rural Utilities Service, an agency of the United States Department of Agriculture, (the Government) in the development of a water system to serve the community, the governing body does hereby adopt and abide by the covenants contained in the agreements, documents, and forms required by the Government to be executed. BE IT FURTHER RESOLVED that the of the be authorized to execute on behalf of the above-referenced agreements and to execute such other documents including, but not limited to, debt instruments and security instruments as may be required in obtaining the said financial assistance. This Resolution, along with a copy of the above-referenced documents, is hereby entered into the permanent minutes of the meetings of this Board. Attest: By (ENTITY NAME) CERTIFICATION I hereby certify that the above resolution was duly adopted by the of the in a duly assembled meeting on the day of , 19 Secretary/Clerk • VA PN No. 150 (Rev. 07-06-98)