HomeMy WebLinkAboutResolution - 071449A - Loan Procurement - Citizens National Bank - Paving Certificates To Secure Loan - 07/14/1949u opy E
Uity
Auditor
C Banat
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RESOLUTIOR DIRECTING PROCUREIYM OF
LOAI3 FROV CITIZENS NATIONAL BARK,
LUBBOCK, T=5., AND ASSIGNMENT OF
GUARANTEED.PAVING CERTIFICATES TO
SECURE. SAID LOAN
WHEIREAS, on or about March 10, 1949, the.Citizens National Bank,
Lubbock, Texas, approved a loan in the amount of Three Hundred Thousan
($300,000,00) Dollars, to the City of Lubbock, to be secured by.
certificates of paving in amounts totalling at least thirty-three and
one-third (33 1/3) per cent more than the amount of the loan, with
interest at the rate of three (3) per cent, as more fully shown by the
Minutes of the City Commission of said date, and the City now needs
an additional loan of One Hundred Thousand ($1000000.40') Dollars, in
order to pay for street improvements -in the City of Lubboek,THEREFORE,
BE IT RESOLVED BY THE CITY COWIISSION OF THE CITY OF LUBBOCK:
That the Mayor of the City of Lubbock be and he is hereby auth-
orized and directed to obtain from the Citizens National Bank the
sum of $100x000.00 for the purpose of enabling the .City of Lubbock
to construct street improvem nts in the way of paving, with interest
at the.rate of 3% per =7=and to execute.and deliver to said Bank
the City?v note, payable to id Bank, at Lubbock, Texas, out of
current funds of the City, and said Mayor is further authorized and
directed to transfer,,assignand deliver to said Bank paving certi-
ficates, payable to the City of Lubbock, and legally.seeured by valid
and subsisting superior paving liens against the property adjoining
the paved streets. Said paving certificates shall be security for
payment of said loan, and the total.amount of unpaid paving certifi-
cates shall be equal to one hundred thirty-three (133) per cent of
the amount of said loan. The aforesaid paving certificates shall be
delivered to and held by said Bank, so long as said loan or any part
thereof remains unpaid, but upon payment of the balance owing upon
any paving certificate such certificate shall be returned to the
City for purpose of releasing the paving lien. The City shall collet
all paving installments when due upon all of said certificates, and
immediately deposit such payments with said Bank, to be carried in a
special fund designated "Paving Fund", from which fund payments shall
be made to said Bank upon said loan as and when designated by either
the Bank or the City.
When such paving certificates.are delivered by the City to the
said Bank, as per terms of this resolution, a list thereof shall be
made in duplicate, attested by the signature of both parties, with
one copy to be'betained by the BarAc and one copy by the City.
en The Mayor is empowered to fix maturities, and renew and extend
payment of all or any part of said loan and likewise furnish or sub-
stitute paving certificates at any time.
To induce the making of said loan by the Bank to the City of
lLubbock for the purpose of paying the City's part of such street im-
provements, for the use and benefit .of the . Citg, the City represents,
warrants and guarantees to said Bank that any and all paving certifi-
cates assigned to.;said Bank as collateral security for said loan
are (a) legally issued and enforeible for the amount of each certi-
ficste, (b) secured by valid lien on the real estate mentioned in
each certificate, (c) no d6fenses to the payment of each of said certi
ficates,. and (d) each of said certificates will be paid when due.
i Passed and approved by unanimous vote of the City Commission, this
14th day of July, 1949.
ATTEST
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