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HomeMy WebLinkAboutResolution - 1210 USDA-FmHA Form FmHA 44?-47 (Rev. 4-9-76) LOAN RESOLUTION NO. 121J A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRIN(;, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR EXTENDING ITS WATER FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE WHEREAS, it is necessary for the City of San Jacinto (hereinafter called "Association" ) to raise a portion of the cost of such undertaking by entering into a loan contract in the principal amount not to exceed $300 , 000 pursuant to the provisions of the Emergency Drought Relief Program; and WHEREAS , the Association intends to obtain assistance from the Farmers Home Administration, United States Depart- ment of Agriculture (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 to enter into a loan contract with the Government; NOW, THEREFORE, in consideration of the premises the Association hereby resolves : SECTION 1. 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 Association is able to refinance the loan contract by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loansfor 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) ) . 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 incor- porated in, or attached as a rider to, each construction contract and subcontract involving in excess of $10 , 000 . SECTION 4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the Association. Such indemnification shall be payable from the same source of funds pledged to pay the loan contract or any other legally permissible source. SECTION 5 . That upon default in the payments of any principal 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 permissible source) incur and pay reasonable expenses -2- 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 con- strued by the 'Government to constitute default under 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. 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. SECTION 7 . Not to borrow any money from any source, enter into any contract or agreement, or incur any other liabilities in connection with making enlargements, improve- ments or extensions to, or for any other purpose in connection with the facility (exclusive of normal mainte- nance) without the prior written consent of the Government if such undertaking would involve the source of funds pledged to pay the loan contract. SECTION S . 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. -3- SECTION 10 . To provide for the receipt of adequate revenues to meet the requirements of debt service , opera- tion and maintenance, and the establishment of adequate reserves. No free service or use of the facility will be permitted. 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 Govern- ment, 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. SECTION 13. To provide the Government at all reason- able 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 instru- ments 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 refusing service to such applicant. Upon the failure to provide such service which is feasible and legal such applicant shall have a direct right of action against the Association under this agreement. The provisions hereof and the provisions of all instru- ments incident to the making or the insuring of the loan, -4- unless otherwise specifically provided by the terms of 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 through 13 hereof may be pro- vided for in more specific detail in the Resolution; to the extent that the provisions contained in such Resolu- tion should be found to be inconsistent with the provisions hereof , these provisions shall be construed as controlling as between the Association and the Government. ADOPTED, SIGNED AND APPROVED this 2-1st day of March , 1978. Mayor, City of San Jacinto (SEAL) ATTEST: LUCY �'TNY ALLEN �1 J City Clerk, City of San Jacinto -5- STATE OF CALIFORNIA ) } ss . COUNTY OF RIVERSIDE ) I, LUCY MAY ALLEN, City Clerk of the City of San Jacinto, California, 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 Zlst day of March , 1978, and that it was so adopted by the following vote: AYES : COUNCILMEN VER PLANK, HAZELTINE, STEVENS, BPOOKS AND 1VTLSOiT NOES : NONE ABSENT: NONE ZZ [ �, r Z,e , LUCY MAY 'AL EN, .City Clerk of the City of San Jacinto (SEAL) -6- STATE OF CALIFORNIA ) ss . COUNTY OF RIVERSIDE ) I, LUCY MAY ALLEN, City Clerk of the City of San Jacinto, California, do hereby certify that the foregoing is a full, true and correct copy of RESOLUTION NO. 1210 of said. City Council, and that the same has not been amended or repealed. DATED: March 21 1978 . 4 � LUCY Y ALL EN, City Clerk, City of San Jacinto (SEAL)