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Home My WebLink AboutORD 1320 - ORD Authorizing Mayor to Execute New Promissory Note Payable to First Republic bank 106 ORDINANCE NUMBER 1320 ;~ i I I ( <----i AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE NEW PROMISSORY NOTE PAYABLE TO FIRST REPUBLIC BANK FANNIN TO REFUND THE PROMISSORY NOTE PREVIOUSLY AUTHORIZED BY ORDINANCE NUMBER 1260 DATED MAY 29, 1986, BY ORDINANCE NUMBER 1290 DATED JUNE 1, 1987 AND BY ORDINANCE NUMBER 1299 DATED OCTOBER 12, 1987; PROVIDING THAT NO TAXES WILL BE LEVIED SINCE FUNDS HAVE BEEN PROPERLY APPROPRIATED AND DESIGNATED FOR THE REPAYMENT OF SUCH DEBT AUTHORIZED HEREIN; AND CONTAINING OTHER PROVISIONS. WHEREAS, the City Council has heretofore authorized Michael L. Parks, Mayor of the City of West University Place, Texas, to execute a promissory note on behalf of the City to First Republic Bank Fannin of Houston in the principal amount not to exceed $160,000; and WHEREAS, such promissory note was executed on or about October 1, 1987; and WHEREAS, the City Council has determined that the renewal and extension of said promissory note 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 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 First Republic Bank Fannin in the principal amount not to exceed $120,000 at the interest rate of 7.75% per annum. A copy of said note is attached to this ordinance. i I I i ,~ Section 2. That the Mayor of the City of West University Place, Texas, be, and he is hereby, authorized to execute any additional documents required in connection with said note. Section 3. That repayment of any sum so borrowed and any accrued interest thereon shall be made from the General Fund, Unreserved Fund Balance Account. Section 4. 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. Section 5. If any word, phrase, clause, sentence, paragraph, section or other part of this ordinance or the application thereof to any person or circumstance, shall ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of this ordinance and the application of such word, phrase, clause, sentence, paragraph, section or other part of this ordinance to any other persons or circumstances shall not be affected thereby. 107 Ordinance Number 1320 o Section 6. All ordinances and parts of ordinances in conflict herewith are hereby repealed to the extent of the conflict only. Section 7. The City Council officially finds, determines and declares that a sufficient written notice of the date, hour, place and subject of each meeting at which this ordinance was discussed, considered or acted upon was given in the manner required by the Open Meetings Law, TEX. REV. CIV. STAT. ANN. art. 6252-17, as amended, and that each such meeting has been open to the public as required by law at all times during such discussion, consideration and action. The City Council ratifies, approves and confirms such notices and the contents and posting thereof. Section 8. This ordinance shall be considered passed finally on the date of its introduction, this 23rd day of May, 1988, and shall take effect immediately upon its passage and approval pursuant to Section 7.07 of the City Charter. PASSED AND APPROVED this 23rdday of May , 1988. Councilmembers Voting Aye: Mayor Parks, Councilmembers Bryan, Bell, Schwartzel Councilmembers Voting No: None n I I l-' Councilmembers Absent: Councilmember Britton Signed: Michael L. Parks, Mayor ATTEST: Audrey Nichols City Secretary Approved as to Form: (SEAL) James L. Dougherty, Jr. City Attorney [J \.: 108. PROMISSORY NOTE $120,000 Houston, Texas June 1, 1988 , I U For value received, the undersigned, THE CITY OF WEST UNIVERSITY PLACE ("MAKER"), promises to pay to the order of FIRST REPUBLICBANK FANNIN (nPayee") at the offices of Payee at 1020 Holcombe Blvd., Houston, Texas 77030, in lawful money of the United States of America, which shall be legal tender in payment of all debts arid dues, public and private, One Hundred Twenty Thousand Dollars ($120,000) and interest (computed for the actual number of days elapsed on the basis of a year of 360 days) in respect of the unpaid principal amount hereof from the date hereof until' maturity at, the' rate of 7.75 percent per annum. The principal amount of this Note shall be due and payable in two installments.: $2{),000plusaccrued interest shall be due and payable on December 1, 1988, and the remaining outstanding principal balance plus accrued interest shall be due and payable on June 1, 1989; prov i ded , however, that if the ma turi ty of th is Note is ex tended pursuant to the terms of the letter Agreement described below, the rate of interest for each renewal period shall be the prime rate of the Bank on the first day of the renewal period less 1/2% per annum, and $20,000 plus accrut2d interest shall be due and payab 1 eon each former maturity date and each date six months thereafter, with the remaining outstanding balance plus accrued interest due and payable in full on the new maturity date. The loan evidenced by this Note is made pursuant to that certain Letter Agreement between Maker and Payee of even date herewith ("Letter Agreement") and represents a term loan in favor of Maker, in the original maximum principal amount of $160,000. It is agreed that time is of the essence of this Note. In the event of default in the payment of the principal or interest when due, or upon the occurrence of an event of default pursuant to the Letter Agreement or any other agreement executed in connection herewith, the holder of this Note may, at its option,declare the entirety of the indebtedness evidenced hereby immediately due and payable and exercise any and all available remedies. The failure of the holder of this Note to exercise any remedy shall not constitute a waiver on the part of the holder of the right to exercise any remedy at any other time. All past due principal and interest shall bear interest from the due date until paid at a fluctuating interest rate per annum equal at all times to two percent (2%) per annum above the rate of interest provided for above, without presentment, demand, protest or other notice of any kind. It is the intention of Maker and Payee to conform strictly to applicable usury laws . Accordingly, notwithstanding anything to the contrary in this Note or any other agreement entered into in connection herewith, it is agreed as follows: (1) the aggregate of all interest and any other charges constituting interest under applicable law '----.J 109 o contracted for, ch!lrgeable or receivable under this Note or otherwise in connection with ~.the line of credit evidenced hereby'shall under no circumstances exceed the maximum amount of interest permitted by law, and any excess shall be cancelled automatically and, if theretofore paid, shall, at the option of the holder of this Note, either be refunded to Maker or credited on the principal amount of this Note; and (ii) in the event the entirety of the indebtedness evidenced hereby is declared due and payable, then earned interest may never include more than the maximum amount permitted by law, and any unearned interest shall be cancelled automatically and, if theretofore ,paid, shall, at the option of the holder of this Note, either be refunded to Maker or credited on the principal amount of this Note. n ~ If this Note is placed in the hands of an attorney for collection, or if collected by suit or through any bankruptcy or other legal proceedings, Maker hereby agrees to pay all expenses incurred by the holder of this Note, including reasonable attorneys' fees, all of which sha 11 become a part of the pri nc i pa 1 hereof. Each Maker, surety and endorser waives grace, demand, presentment for payment, notice of dishonor, diligence, and protest of any kind and agrees and consents that this Note may be renewed and the time of payment extended, without notice and without releasing any of the parties. Except to the extent federal regul ati ons or 1 aws are app 1 i cab 1 e, this Note shall be construed and enforced under and in accordance with and shall be governed by the laws of the State of Texas. ~ \)\ By: Title: Q 2