HomeMy WebLinkAboutResolution - 073064H - Assurance Of Payment - Citizens National Bank On Behalf Of SE LBK Development Co - 07_30_1964 T.dj1 V I�
RESOLUTION
WHEREAS, pursuant to request of the City of Lubbock the Southeast Lubbock
evelopment Corporation has secured a loan commitment in the amount of
2, 550, 000.00 to be insured by Federal Housing Administration pursuant to the
dministrative Regulations for Section 221(d)3 of the National Housing Act, which is
Co be used for the purpose of constructing a multifamily housing project designated
s Green Fair Manor located within the Urban Renewal Area of the City of Lubbock;
3.nd,
WHEREAS, according to the Administrative Regulations of the Federal Housi g
Administration the Southeast Lubbock Development Corporation is required to assur
he mortgagee that certain working capital deposits in the amount of $51,000. 00 are
available for equipping and renting the project and for taxes, hazard and mortgage
nsurance premiums accruing subsequent to closing such loan; and,
WHEREAS, the Southeast Lubbock Development Corporation is permitted
under the Regulations to submit to Mortgagee an irrevocable letter of credit from
lending institution in lieu of a cash deposit of $51, 000.00; and,
WHEREAS, in order to secure such irrevocable letter of credit the Southeast
ubbock Development Corporation, a non-profit corporation, is dependent upon
ldvances by the City of Lubbock; and,
WHEREAS, it is found that it is in the best interest of the City of Lubbock
that the project as contemplated by the Southeast Lubbock Development Corporation
e carried to completion according to the loan commitment and Federal Housing
Authority Regulations pertaining thereto; and,
WHEREAS, in order to carry out this objective it is necessary that the City
of Lubbock make assurances to a lending institution able to issue the requisite
irrevocable letter of credit to mortgagee that advances will be made to Southeast
Lubbock Development Corporation when and if necessary, NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT as a matter of public policy and in furtherance thereof that the City
of Lubbock enter into an assurance of payment with Citizens National Bank of
Lubbock, Texas on behalf of-Southeast Lubbock Development Corporation, for a
period not exceeding twenty-four months, that the City of Lubbock will advance to
the Southeast Lubbock Development Corporation any sum or sums not to exceed a
total of $51, 000. 00 to pay said bank, for any amount paid by it on behalf of the
Southeast Lubbock Development Corporation on order of Investors, Inc. of Lubbock,
Texas, primarily for equipping and renting, taxes, hazard and mortgage insurance
premiums accruing subsequent to completion of the Green Fair Manor Project as
required by the Federal Housing Commissioner in relation to the Green-Fair Manor
Project pursuant to the Citizens National Bankts irrevocable letter of credit for
$51, 000. 00 issued to Investors, Inc. on behalf of Southeast Lubbock Development
Corporation.
Be it further resolved that the Mayor of the City of Lubbock be and is
hereby authorized and empowered to execute on behalf of the City of Lubbock any
and all instruments which may be required to carry out the purposes of this
resolution.
Passed by the City Council this 30th day of July, 1964.
2 A-1 4:R 494
MAX TIDMORE,, Mayor
ATTEST
_ r
y i
LaN�enia, Lowe, City Xecretary-Treasurer
APPROVED;
;4reO�L. Senter,- Jr. , City Pdfbrney
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t� CITY OF' LUBBOCK
�,.,^�• - PORTER 3•5491
P. 0. BOX 2000
J LUBSOCK, TEXAS 79409
MAX TIDMORE
MAYOR July 30, 1964
Citizens National Bank
Lubbock, Texas
Gentlemen: .
Pursuant to authority of Resolution passed by the City Council
dated July 30th, certified copy submitted herewith, this is to request
the Citizens National Bank to issue its letter of credit on behalf of the !
Southeast Lubbock Development Corporation in favor of Investors, Inc.,
and in accordance with the above described Resolution the City of _
Lubbock will advance to Southeast Lubbock Development Corporation
any sum or sums not to exceed a total of $51,000. 00 to pay the Citizens
National Bank for any amount paid by it on behalf of the Southeast
Lubbock Development Corporation on proper order of Investors, Inc.
of Lubbock, Texas, to be used for purposes enumerated in said
Resolution subject to the conditions and limitations therein stated.
CITY OF LUBBOCK
BY:
MAX T DMORE, Mayor
ATTEST:
Lavenia owe, City S cretary-Treasurer
APPROVED:
C�
red O. Senter, Jr., i '-Attorney