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HomeMy WebLinkAboutCC Reso No 1977-51USDA-FmHA Form FmHA 442-47 (Rev. 4-9-76) LOAN RESOLUTION NO. 77-51 A RESOLUTION DF THE CITY COUNCIL OF TAE CITY OF LAKE ELSINORE AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PQRTION OF THE COST OF ACQUIRINC,, CONSTRUCTING, ENLARGING, IL4PROVING, AND/OR EXTENDINGS ITS WATER FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WAEREAS, it is necessary for the City of. Lake Elsinore (hereinafter called "association") to raise a portion of the cost of such undertaking by entering into a loan contract in the princiAal amount not to exceed $356,800 pursuant to the provisions o£ the Emergency Drouqht Relief Program; and [4HERFAS, the association intends to obtain assistance from the Farmers Home Administration, United States Department of ~ Agriculture (herein called the "Government") acting under the provi.sions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and super- vision o£ such undertaking to to enter into a loan contract with the Government; NOW, THEREFORE, in consideration of the premises the association hereby resolves: SECTION l. To have prepared on its behalf and to adopt a resolution for approving a loan contract (herein called the "Resolution") and containing such items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government. SECTION 2. To refinance the unpaid balance, in whole or in part of the loan contract upon the request of the Government if at any time it shall appear to the Government that the -1- association is able to refinance the loan contract by obtain- ing a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for simi- lar 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)). SECTION 3. To provide for, execute, and comply with Form FmHA 400-4, "Nondiscrimination 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 involv- ing in excess of $10,000. SECTION 4. To indemnify the Government for any payments made or losses suffered by the Government on behal£ of the associa- tion. Such indemnification shall be payable from the same source of funds pledged to pay the loan contract or any other legally permissable source. SECTION 5. That upon default in the payments o£ any prin- cipal and accrued interest on the loan contract or in the performance of any covenant or agreement contained herein or in the instruments incident to making or insuring the loan, the Government, 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 loan contract or any other legally permissable 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 ofthe facility, repair, -2- 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 under any other instrument held by the Govern- ment and executed or assumed by the association, and de£auTt under any such instrument may be construed by the Government to constitute default hereunder. SECTION 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, not permit others to do so, without the prior written consent of the Government. : SFCTION 7. Not to borrow any money from any source, enter into any contract or aqreement, or incur any other liabilities in connection with making enlargements, improvements or extensions to, or for any other 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 £unds pledged to pay the loan contract. SECTION 8. To place the proceeds of the loan contract on deposit in an account, in a bank, and in a manner approved by the Government. SECTION 9. To comply with all applicable State and. Federal laws and regulations and to continually operate and maintain the facility in good condition. SECTION 10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and mainten- ance, and the establishment of. adequate reserves or use of the facility will be permitted. No free service -3- SECTION 11. To acquire and maintain such insurance coverage including fidelity bonds as may be required by the Government. SECTION 12. 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 in such a manner as may be required by the Government, to provide the Government without its request, a copy of each such audit, and to make and forward to the Government such additional information and reports as it may from time to time require. S~CTION 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. SECTION 14. To serve any applicant with the service area who desires service and can be feasibly and legally served, and to obtain the concurrence of the Farmers Home Administration prior to re£using service to such applicant. Upon the failure to provide such service which is feasible and legal such appli- cant shall have a.direct right of action against the association under this agreement. The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless other- wise specifically provided by the terms o£ such instruments, shall be binding upon the association as long as the bonds are held or insured by the Government. The provisions of Sections 6 throuqh 13 hereof may be provided for in more speci£ic detail in the Resolution; to the extent that the provisions contained in such _4_ Resolution should be found to be inconsistent with the provisions i hereof, these provisions shall be construed as controlling as I between the association and the Government. ADOPTED, SIGNED AND APPROVED this 28th day of November ~ 1977. ayor, Lake E re - (SEAL) ATTEST: ~ 1~ ~ fv r' `~~'7~l',s ., ~r ~~ . . City Clerk of Lake Elsinore _5- STATE OF CALIFORNIA ) ) ss COUNTY OF RIVERSIDE ) I, FLORENE MARSHALL, City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City at a regular meeting of said City Council on the 28th day of movember , 1977, and that it was so adopted by the following vote: AYES: COUNCILMEN Torn, Crowe, Carter, DePasquale NOES: COUNCILMEN -NONE- ABSENT: COUNCILMEN Harris ~ % ,c~ s-~-a-~Ai -~_O~ FLORENE MARSHf~LL, City Clerk City of Lake Elsinore (SEAli) -6- _ _ . __ _ _ _ STATE OF CALIFORNIA ) )ss COUNTY OF RIVERSIDE ) 2, FLORENE MARSAALL, City Clerk of the City of Elsinore, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION N0. 77-51 of said City Council, and that the same has not been amended or repealed. DATED: November 29 , 1977. o ~~~~ ~~~~~~~~~~~~ FLORENE MARSHALL, City Clerk City of Lake Elsinore (SFAL)