HomeMy WebLinkAboutORD 1242 - ORD authorizing Mayor to Renew & Extend Promissory Note Authorized by ORD 1194 dated August 23, 1982.
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ORDINANCE NUMBER 1242
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE
THE NECESSARY DOCUMENTS TO RENEW AND EXTEND THE
PROMISSORY NOTE PREVIOUSLY AUTHORIZED BY ORDINANCE
NUMBER 1194 DATED AUGUST 23, 1982, PROVIDING FOR
THE REPAYMENT OF SUCH AMOUNT 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
$246,000; and
WHEREAS, such promissory note was executed on or about
september I, 1984; and
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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 $82,000 to be applied
as a principal reduction of the $246,000 promissory note, together with
the sum of $12,459.44 representing interest accrued on said promissory
note from date of execution (September 1, 1984) through August 31, 1985.
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
$164,000 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 and Commerce Bank-Chemical.
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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,
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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 this 9th
day of September
1985.
Councilmembers Voting Aye:
Councilmembers Voting No:
ATTEST:
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ALL
NONE
Michael L. Parks, Mayor
Audrey Nichols, City Secretary
( SEAL)
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