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HomeMy WebLinkAboutORD 1239 - ORD Authorizing Mayor to Execute Necessary Documents to Renew and Extend Promissory Note ~u."l l!II:I:IIIIIm.IJ!!l~~L..i J""lT1T""~1----'- r."L "~W ~__ _ I. .J r::..:. , ..~ ~~tHJ208 ORDINANCE NUMBER 1239 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE NECESSARY DOCUMENTS TO RENEW AND EXTEND THE PROMISSORY NOTE PREVIOUSLY AUTHORIZED BY ORDINANCE NUMBER 1225 DATED JUNE I, 1984; PROVIDING FOR THE REPAYMENT OF SUCH M10UNT SO BORROWED; AND PROVIDING 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 Council has heretofore authorized Marla S. Forristall, Mayor of the City of West University Place, Texas, to execute a promissory note on behalf of the city to Texas Commerce Bank-Chemical of Houston in the principal amount not to exceed $325,000; and WHEREAS, such promissory note was executed on or about June 1, 1984; and WHEREAS, the City Council has determined that the renewal and extension of said promissory 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 $65,000 to be applied as a principal reduction of the $325,000 promissory note, together with the sum of $16,475.69 representing interest accrued on said promissory note from date of execution (June I, 1984) through May 31, 1985. -, I I . I '---' Section 2. That Michael L Parks, Mayor of the City of West University Place, Texas, be, and he is hereby, authorized to execute a renewable and extended promissory note on behalf of the city payable to Texas Commerce Bank- Chemical in the principal amount not to exceed $260,000 at the interest rate of 5% per annum. Section 3. That Michael L. Parks, Mayor of the City of West University Place, Texas, be, and he is hereby, authorized to execute any additional documents required to renew and extend the loan agreement made between the city and Texas Commerce Bank-Chemcial. Section 4. That repayment of any sum so borrowed and any accrued interest thereon shall be made from the Water/Sewer Fund, Retained Earnings Account. Section 5. That in view of 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. I I i I I '-.) n o [ 208 Section 6. That this ordinance shall take effect and be in force from and after its passage and approval by the City Council. 1985. PASSED AND APPROVED ON FIRST READING this 23rd day of Mav , 1985. PASSED AND APPROVED ON SECOND READING this 10th day of June Councilmembers Voting Aye: All Councilmembers Voting No: None Michael L. Parks, Mayo~ ATTEST: Audrey Nichols, Assistant City Secretary T , r--:, .. .; il; I ..--,----------,---r,--,---------'.~'''''rITlnrmliT!1m1r.I!I11'I'MiII'r ,:".m'r'r~'T'""'rr r I.--'H 11.1-,1