HomeMy WebLinkAboutORD 1216 Extending the Promisory Note authorized by Ordinance 1146
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ORDINANCE NUMBER 1216
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE NECESSARY
DOCUMENTS TO RENEW AND EXTEND THE PROMISORY NOTE PREVIOUSLY
AUTHORIZED BY ORDINANCE NUMBER 1146 DATED DECEMBER 29, 1979,
ORDINANCE NUMBER 1164 DATED DECEMBER 8, 1980, ORDINANCE NUM-
BER 1182 DATED DECEMBER 14, 1981 AND ORDINANCE NUMBER 1208
DATED DECEMBER 27, 1982; PROVIDING FOR THE REPAYMENT OF SUCH
AMOUNT SO BORROWED; AND PROVID1NG THAT NO TAXES WILL BE LEVIED
SINCE FUNDS HAVE BEEN PROPERLY APPROPRIATED AND DESIGNATED FOR
THE REPAYMENT OF SUCH DEBT AUTHORIZED HEREIN.
WHEREAS, the City Countil has heretofore authorized James M. Cole,
Mayor of the City of West University Place, Texas, to execute a promisory note
on behalf of the city to Chemical Bank of Houston in the principal amount not
to exceed $350,000; and
WHEREAS, such promisory note was executed on or about December 30,
1979, said note was renewed and extended on December 8, 1980, December 14,
1981, and December 27, 1982; and
WHEREAS, the City Council has determined that the renewal and ex-
tension of said promisory note for an additional one (1) year period would
be to the advantage of the city.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WEST UNIVERSITY PLACE, TEXAS:
Section 1. That the City Treasurer is hereby authorized to pay to
Texas Commerce Bank/Chemical the sum of $70,000 to be applied as a principal
reduction of the $140,000 promisory note, together with the sum of $7,097.06
representing interest accrued on said promisory note from date of renewal
(December 31, 1982) through December 31 , 1983.
Section 2. That Marla S. Forristall, Mayor of the City of West Uni-
versity Place, Texas, pe, and she is hereby, authorized to execute a renewable
and extended promisory note on behalf of the city payable to Texas Commerce
Bank/Chemical in the principal amount not to exceed $70,000 at the interest
rate of 5% per annum.
Section 3. That Marla S. Forristall, Mayor of the City of West Uni-
ersity Place, Texas, be, and she is hereby, authorized to execute any addi-
tional documents required to renew and extend the loan agreement made between
the city and Texas Commerce Bank/Chemical.
Section 4. That repayment of any sum borrowed and any accrued
interest thereon shall be made from the Water/Sewer Fund, Retained Earnings
Account.
Section 5. That ill vlewbf,adequate monies having been appropriated
for repayment of any debt authorized to be created herein, no additional tax
need be levied for repayment of the proposed indebtedness.
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Section 6. That this ordinance shall take effect and be in force
from and after its passage and approval by the City Council.
PASSED AND APPROVED on First Reading this 12th day of December, 1983.
1983.
PASSED AND APPROVED on Section Reading this 19th day of December,
ATTEST:
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Lee Lockard, City Secretary
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