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HomeMy WebLinkAbout1993 06_Authorize Treasurer to invest funds_1993.06.15CITY OF OWASSO, OKLAHOMA WHEREAS, the City Council of the City of Owasso, Oklahoma, finds that the City presently maintains funds that have reserves which have reached a level that would allow for investments of a significanL nature and for lonq term investments that might produce a higher yield; WHEREAS, the City Council of the City of Owasso, Oklahoma, finds that investment opportunities are problematical due to low levej of interest rates presently existing in the market as well as legal restrictions placed upon the placement of public funds in. the market,-, WHEREAS, the City Council of the City of Owasso, Oklahoma, finds thaL after exploration of several investment opportunities and the discovery that the return on investments of a traditional nature would riot. be significant, alternatives to traditional investments that -would produce a higher yield in an otherwise depressed investment climate have been ascertained; WHEREAS, the City Council of the City of Owasso, Oklahoma, has deLermined t.hat the Owasso Public Golf Authority, an Oklahoma Public Trust, havQ(.-,j the City of Owasso, Oklahoma, as it's beneficiary, has a present need to raise additional funds for the final golf course projects and to provide cash for start up of the golf course; ow-res.opq WHEREAS, the City Council of the City of Owasso, Oklahoma, finds Lhat a present need in the amount not to exceed Four Hundred Thousand Dollars ($400,000.00) exists on the part of the Owasso Public Golf Authority, and that the Owasso Public Golf Authority, is desirous of obtaining such funding from the City of Owasso, Oklahoma, in a manner that would produce for the City higher yield on it's investments while at the same time assisting the Owasso Public Golf Authority in completing the golf course, a community enhancement project; and, WHEREAS, under the public finance provisions of the statutes of the State of Oklahoma, relating to municipal. -investment of funds, 68 O.S. Section 348.1 /Authorized Investments /Disposition of Income, the City Treasurer of the City, when authorized by the City Council by written investment policy, ordinance or resolution, is authorized to invest monies in the custody of the City Treasurer in Revenue Anticipation Notes issued by a public trust for which such City is a beneficiary thereof; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT TO-WIT: SECTION ONE. The City Treasurer of the City of Owasso, Oklahoma, is hereby authorized to invest certain unappropriated an.i. unencumbered monies of the City of Owasso, Oklahoma, surplus to the present needs of said City, in the custody of the City Treasurer of the City of Owasso, Oklahoma, in a Revenue Anticipation Note to be issued by the Owasso Public Golf Authority, an Oklahoma Public Trust having the City of Owasso, Oklahoma, as it's beneficiary, in W amount, not to exceed Four Hundred Thousand Dollars ($400,000.00). The City Council of the City of Owasso, Oklahoma, hereby approves the proposed Agreement and Revenue Anticipation Note to be issued by the Owasso Public Golf Authority, a copy thereof being attached hereto, made a part hereof and marked as Exhibit "A". SECTION TWO. The Mayor, or Vice-Mayor as the case the may be, the City Clerk or the Deputy City Clerk as the case may be, and the City Treasurer or Deputy Treasurer as the case may be, of the City of Owasso, be and they hereby are, authorized and empowered for and on behalf of the City of Owasso, Oklahoma, to execute, deliver and receive the Agreement and Revenue Anticipation Note of the Owasso Public Gotf Authority exhibited hereto and such further agreements and docaments and ho take such antions as such officer or officers may deem necessary ox desirnbJe in order to carry out and perform thn investment and to effect the purposes thereof and to consummate the transaction contomplated thereby. SECTION THREE. That in accordance with public finance provisions of the Statutes of the State of Oklahoma relating to municipal investment of funds, � 8 O. S, Section 348.1(5), the income received by .he CiQ of Owasso from the investment herein ow res.opq contemplated shall be placed, on a pro rata basis as hereinafter set forth, -in the Contributing Funds within the City of Owasso, Oklahoma Consolidated Cash Account. Stich pro rata distribution of Income shall be made on the per-c-entage basis that the Contributing Fund within the Consolidated Cash Account of the City of Owasso, oklahomci, bears to the Contributing Funds within the Consolidated Cash Account of the City of Owasso, Oklahoma, on an average monthly basis, as determined. semi - annually, on ,July 1, and January 1, for distribution of the income earned in the preceding six (6) month period.. Any Contributing Fund within the Consolidated Cash Account of the CiLy of Owasso, Oklahoma, subsequently closed by the City Council of the City of Owasso, Oklahoma, shall receive no further pro rata. distributions of income. PASSED AND APPROVED this day of - - -- 1 9 9 3. MWINEW ow-- res. opq Z2 By, Mb Randolph, Mayor 4 EXHIBIT "A" TO CITY OF OWASSO, OKLAHOMA RESOLUTION NUMBER Rye-LAIMMITURN" THIS AGREEMENT (the "Agreement") made and entered into as of the __Z, day of June, 1993, by and between the Owasso Public Golf Authority, an Oklahoma public trust, (the "Authority") , and the City of Owasso, Oklahoma, an Oklahoma Municipal Corporation, (the 11 C i ty") - WITNESSETH: WHEREAS, the City has determined to make a loan to the Authority aggregating $400,000.00 to be evidenced by the Authority's Revenue Anticipation Note payable to the order of the Cit:y in. the original principal amount of $400,000.00, (the "Note") to enabLe the Authority, pursuant to certain of its approvals, to finance costs of the completion of the construction of a golf course (the "Project"). WHEREAS, pursuant to the terms and conditions hereinafter set forth, the City is willing to make such. loan to be evidenced by the Note; and. WHEREAS, the payment of the Note is to be secured by a subordinate security interest in. the revenues of the Authority, receipts arid. receivables, under the conditions as set forth hereinafter. NOW, THEREFORE, in consideration of the mutual agreements herein made and. other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: FirmsLy THE AUTHORITY NOTE a.1. The _City Commitment. The City agrees, subject to the terms and conditions of this Agreement, to make a loan to the Authority in the amount not to exceed Four Hundred Thousand Dollars ($400,000.00). 1.2 Issuance of the Authority Note. Subject to the terms and conditions hereof and in reliance on the representations and covenants made herein, the Authority agrees to issue the Note to the City. The loan shall be repaid with interest in accordance with the terms of the Note. The Note shall be delivered to the City at a closing (the "Closing") which will occur at such time ow--opga.agt I and. place as may be agreed on by the Authority and the City. Upon the issuance and delivery of the Note, and the satisfaction of all conditions precedent of this Agreement, the City shall, upon receipt and approval of requisitions therefor, advance the proceeds of the loan to the Authority to the Authority's demand deposit account number (the "Project Account") for disbursement therefrom to pay the costs of the Project. I.3 Loan Advances. Except as hereinafter provided, the loan. advances on the Note- shall be made pursuant to a schedule which shall be in accordance with the Authority's construction completion schedule. Each request for an advance shall be accompanied by a certificate describing the invoices for which the loay) advances are sought, certifying that the work, labor or materials for which the loan advance is sought have been performed according to the plans and specifications and certifying that sufficient funds are available under the Note to complete the construction of the Project in accordance with the plans and specif -ications. Lien waivers from all contractors and subcontractors shall be provided by the Authority with each loan advance. The parties agree that $173,000.00 of the loan proceeds shall_ be set aside by the Authority and placed in the Interest Account and Principal Account of the Bond Fund at the Authority's Trustee Bank, to be used exclusively for the Authority making its first payment in July of 1994 on the Owasso Public Golf Authority Recreational Facilities Revenue Bond, Series 1992, obligation I 4 Terms of the Note. The Note shall be in the form set forth in Exhibit A hereto. Interest shall accrue, be payable and subject to adjustment, as provided for in the Note on the outstanding and unpaid principal balance thereon from the date of first advance thereon until payment in full- thereof as set forth and provided therein. 1.5 Payments, etc. All payments of principal, of premium, if any, and interest, on the Note and other charges under this Agreement to be made to the City shall be made in lawful money of the United States of America, and shall be made at City's principal office in Owasso, Oklahoma, not later than 11:00 o'clock a.m. on the date du.e. If any such payment falls due on a. Saturday, Sunday or public holiday at the place of payment thereof, then such due date shall- be extended to the next succeeding full business day at. such place and interest sba.11 be payable in respect of such extension. ARTICLE II CONDITIONS PRECEDENT 2 . I Conditions. The obligation of the City to make the loan pursuant to this Agreement is subject to there being no ow-opga.agt 2 Event of Default hereunder or an event which with notice or lapse of time would become an Event of Default hereunder or an event of Default on the part of the Authority in it's $4,905,000.00 Recrealt--ional Facility Revenue Bonds, Series 1992, and the City having received in form and substance satisfactory to them: (a) A duly certified copy of the resolution of the Authority authorizing execution and delivery of this Agreement, and related instruments, and the issuance, execution and delivery of the Note; (b) Original duly executed counterparts of (i) this Agreement, arid. (ii) such financing statements) as respect the Eoregoin.g. (c) Evidence that the Agreement, the Note and financing statements to the extent appropriate have been duly recorded and. filed in all appropriate places required for due recording and perfection under Oklahoma law; (d) Such certificates, documents and certificates respecting the Authority as Authority counsel or City counsel shall reasonably require; (e) Evidence satisfactory to city Authority's compliance with requirements of the Agreement as reasonably require including but builder's risk insurance during phase of the project; respecting the the insurance the City shall not limited to the construction M A detailed description and cost breakdown analysis of the Project (the "Breakdown") and all amendments thereto, all for approval by City; Such other and further materials and/or information as the City may reasonably request; ARTICLE III SPI.,"CIAL OBLJ-GA7'JON-_PLLDGE,-. SATISFACTION 3.1 Special Obligation. The Note shall constitute a limited and special obligation of the Authority. The principal of ,and interest on the Note shall be payable by the Authority solely from, and shall be enforceable only out of (i) the revenues of the Authority, and (ii) the Project Account, together with all earnings thereon., if any, being hereby pledged by the Authority to such payment. Notwithstanding anything to the contrary contained herein or in. the Note, or in any instrument or document executed ow--opga.agt 3 4 by or on behalf of the Authority in connection herewith, no stipulation, covenant, agreement or obligation contained herein or therein shall be deemed or construed to be a stipulation, covenant, agreement or obJigation of any present or future member, trustee, officer, employee or agent of the Authority, or of any trust or, member, director, trustee, officer, employee or agent or any successor to the Authority, in any such. person's individual capacity, and no such person, in his individual capacity, shall be liable personally for any breach or non-observance of or for any fai-lure to perform, fulfill or comply with any such stipulations, covenants, agreements, or interest on the Note or for any claim based thereon or on any such stipulation, covenant, agreement or obligation, against such person, in his individual capacity, either dj_recLly or through the Authority or any successor to the Authority, under any rule of law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise, and a.11 such liability of any such person, in his individual capacity, is hereby expressly waived and released. 3,2 Satisfaction of Debt. The Authority and the City expressly recognize and agree that this Agreement, the Note and any documentation issued, executed and delivered therewith, are subordinate and junior to the obligations of the Authority arising under the Owasso Public Golf Authority $4,905,000.00 Recreational Fac.ilities Revenue Bonds, Series 1992. By reason of the foregoing, and in recognition by the Authority of the notification and cure rights possessed by the City pursuant to Article 8, Sections 8.12 and 8.13, of the Owasso Public Golf Authority Recreational Facilities Revenue Bond, Series 1992, Authority shall timely notify City of an anti-cipatory default on its part as well as any notification of default received by Authority from the Trustee thereunder. ARTICLE IV COVENANTS OF THE AUTHORITY The Authority hereby agrees with the City that, so long as the Note remains outstanding 4.1 Performance of Agreements, The Authority shall take all action and do all things which it is authorized by law to take and do in order to perform and observe all covenants and agreements on its part to be performed and observed under this Agreement, the Note and the Owasso Public Golf Authority's Recreational Facilities Revenue Bonds, Series, 3.992, and in order to provide for and to assure payment of the principal. of the Notes and any premium or interest thereon when due. 4.2 Creation of Charges on Revenues. The Authority shall.. not create or suffer to exist any assignment, pledge, security interest or other lien, encumbrance or charge on any ow---opga,agt 4 revenues derived or to be derived from the assets, real or personal, of the Authority, excluding, however, the Recreational Facilities Revenue Bonds, Series, 1992, and any other liens, encumbrances or charges in favor of the City as security for the Note. 4.3 Amendment. The Authority shall not alter, amend or repeal the resolutions described in Section 2.1(a) hereof, or, Without the prior written consent of the City, agree to any a. I t - eration or amendment of any of the instruments described in Sections 2. 1, (b) and 2.1(c) hereof, or take any action impairing any authority, right or benefit given or conferred by such resolution or instruments. 4.4 Payujt- L n , - The Authority t hoity shall pay or cause o be t paid the principal of, premium, if any, and the interest on the Note as the same becomes due, whether by acceleration or otherwise but solely from the sources referred to in Article III hereof. 4.5 Representations and Warranties of Authority. The Authority represents and warrants to City as follows: (a) The Authority is an Oklahoma public trust duly organized, validly existing and in good standing under the laws of the State of Oklahoma and all other states in which it is necessary that the Authority be qualified to do business. (b) The Authority has taken all necessary actions to authorize entering into this Agreement and to authorize the execution and delivery of the Note, the Agreement and the other documents contemplated hereby. (c) The execution and. delivery of this Agreement, the Note, will not cause, constitute or result in a breach of any agreement, contract or other undertaking to which the Authority is a party. (d) The Authority shall deliver to City copies, certified by the Authority's Secretary, of all resolutions and actions undertaken by the Authority to authorize this, transaction, (e) The Authority shalL maintain its existence in Oklahoma. (f) The Authority shall deliver to City, within one week after they are prepared, copies of the Authority's quarterly financial statements. ow opga. agt ARTICLE V 5 DEFAULT AND REMEDIES 5.1 Events of Default. Any one or more of the following shall constitute and "Event of Default" hereunder; Nonpayment when due of any installment of interest or principal in accordance with the terms of the Note; or b The attachment of any involuntary lien in the sum of $25,000 or more, of any kind or character, upon the Property of the Authority or any portion thereof, except for taxes due but not in default and liens being contested in such a manner as to prevent execution on the Property; or (C) The entry against the Authority of (i) any judgment in an amount of $25,000 or more on a claim not covered by insurance which is not discharged within thirty (30) days of such judgement becoming a final judgment; or (d) If- the Authority, shall. (i) apply for or consent to the appointment of a received, a trustee or I.i.quidator of themselves or itself, or of all or a substantial part if its assets, or (ii) file a petition or answer seeking reorganization or admit (by answer, default or otherwise) the material allegations of a petition filed against them in any reorganization proceeding; or (e) If the Authority, shall (i) become insolvent, generally fail to pay, or admit in writing their respective inability to pay their respective debts as the fall due, (ii) make a general assignment for the benefit of their or its respective creditors, (iii) be adjudicated a bankrupt or insolvent, or (iv) file a voluntary petition in bankruptcy or file a petition or answer seeking an arrangement with creditors or to take advantage of any insolvency .laws or admit (by answer, default or otherwise) the material allegations of a petition filed against any of them in any bankruptcy, arrangement or insolvency proceeding, or take or omit to take any action for the purpose or with the result of effecting any of the foregoing; or (f) If a petition in bankruptcy is filed against the Authority, and is not dismissed within thirty (30) days, or if an order, judgment or decree by any court of competent jurisdiction shall be entered, ad.judical-ing the Authority to be bankrupt or ow-opga.agt 6 insolvent, without the application, approval or consent of the Authority or if the Authority shall seek or consent to or fail to timely contest any order, judgment or decree appointing a custodian of all or a substantial part of their assets, or if the Authority shall seek or consent to, or fail to timely contest any order, judgment or decree approving a petition seeking reorganization or appointing a receiver, trustee or other custodian or liquidator of all or a substantial part of its assets; or (g) Failure of the security interests granted in the Agreement to constitute a duly perfected, valid security interest in the Property; or (h) If any warranty or representation of the Authority contained in or any financial statement or other information given or furnished to the City by or on behalf of the Authority shall be false or misleading in any material respect; or The breach of, or default under, any covenant, agreement, term, condition, provision, representation or warranty contained in this Agreement, the Note or the Owasso Public Golf Authority Recreational Facilities Revenue Bonds, Series, 1992, not specifically referred to in this Section, if such breach or default is not cured within thirty (30) days of the occurrence thereof; or (j) in any event of default shall occur and shall continue for more than the period of grace, if any, provided with respect thereto, under this Agreement, (k) The Project cannot be completed in accordance with the plans and specifications approved by the City with the funds remaining to be advanced on the Note. "I 5, Z' Remedies on Default. Whenever any Event of Default ref erred. to in Section 5.1 hereof shall have occurred, the City may ta. k e a. n y one or more of the following remedial steps: (a) Declare all amounts payable hereunder and pursuant to the Note or any renewal thereof, to be immediately due and payable without notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any kind whatsoever, whereupon the same, together with the accrued interest thereon, shall become immediately due and payable; ow-opga.agt 7 WO (b) Realize upon its rights under the other collateral documentation as may from time to time inure to the benefit of the City; or (c) Take whatever action at law or in equity may appear necessary or desireable to collect the amounts then due and thereafter to become due, or to enforce performance or observance of any obligations, agreements or covenants of the Authority under the Note and this Agreement. ARTICLE VI CUSTODY AND APPLICATION OF NOTE PROCEEDS AND OTHER MONEYS 6.1 Pro_°e.ct Account. Provided Authority is in complJance with the terms of the Agreement and Note, the proceeds of the Note upon duly submitted requisitions therefor, shall be advanced and deposited in the Project Account and disbursed therefrom for payment of the costs of the Project. 6.2 Pledge of Accounts. Pending disbursement, all moneys and investments standing to the credit of the Project Account are hereby pledged to the City, and a security interest in all such moneys and investments, as security for the payment in ful], of the Note and all other amounts due to the City hereunder. ARTICLE VII MISCELLANEOUS 7.1 Defeasance. If the Authority shall pay or cause to be paid or otherwise provide for, or there shall otherwise be paid or provided for, the principal and the interest on the Note and all other amounts payable by the Authority at the times and in the manner stipulated in this Agreement or the Note, then all covenants, agreements and other obligations of the Authority hereunder, and the security interest created shall thereupon L"erM-ii.nate and be discharged and satisfied, and. thereupon all the moneys and properties of the Authority then subject to such security interest shall be free and clear thereof and the Authority may withdraw any such funds from the Project Account. 7.2 Waivers etc. No failure on the part of the City to exercise and no delay in exercising, and no course of dealing with respect to, any right under this Agreement, or any other aq--reem(-:)nt or instrument referred to in this Agreement, shall operate --)s a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein ow-opga.agt 8 and therein provided are cumulative and not exclusive of any remedies provided by law. 7.3 Fees and Expenses. The Authority agrees to pay, (i) all taxes or other governmental charges including, without limitation, filing fees upon any documents or transactions pursuant to this Agreement', (ii) all expenses incident to filings or recordings pursuant to this Agreement, or in respect of the pledge hereunder and thereunder including, but not limited to, and the fees of City counsel in the preparation and review of this Agreement, the other loan documents and related matters, and (iii) a.11 costs of collection (including reasonable counsel fees) if default is made in the payment of the Note. 7.4 Successors, etc._ This Agreement shall be binding upon and inure to the benefit of the parties hereto and any subsequent holder of the Note and its successors and assigns. 7.5 Governing Law. This Agreement shall be construed in accordance with, and governed by the laws of the State of Oklahoma. 7.6 Amendments. This Agreement may not be amended, modified or waived except with the written consent of the parties hereto. 7.7 Notices. All requests and notices under the Agreement shall be hand delivered or sent by United States Mail, postage prepaid, addressed as follows, except that either party may be written notice change of address, its counsel or its counsel's address for subsequent notices to be given hereunder: Authority: Owasso Public Golf Authority 207 South. Cedar Owasso, Oklahoma 74055 Attention: Rikkola, Jr., Chairman with a coDv to: Ronald D. Cates Authority Attorney Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 City: City of Owasso, Oklahoma Owasso City Hall 207 South Cedar Owasso, Oklahoma 74055 ow--opga.agt 9 M with a copy to: Ronald D. Cates City Attorney Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 Notice given hereunder shall be deemed given upon receipt by the principal- addressee. 7.8 SeverabilitV. If any provision of this Agreement shall be held j-nvalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 7.9 Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be an oraginal and all of which shall constitute one and the same instrument. Owasso Public Golf Authority By Tom M. Rikkola, Jr., Chairman "Authority" ATTEST: By City of Owasso, Oklahoma By: s 6k Bob Randolph, Mayor ow --opga. agt 10 4 EXHIBIT "A" TO AGREEMENT DATED THE L5j DAY OF JUNE _k , 1993 OWASSO PUBLIC GOLF AUTHORITY -- CITY OF OWASSO REVEAVE ARTICIPATION NOTE OF THE OWASSO PUBLIC GOLF AUTHORI A Dated as of the d c ay of June, 1.993 -,I Owasso, Tulsa County, Oklahoma $400,000.00 FOR VALUE RECEIVED, the undersigned, Owasso Public Golf Authority, an Oklahoma Public Trust, having the City of Owasso, as its beneificiary, its successors and assigns (collectively, the "Borrower"), promises to pay to the order of the City of Owasso, Oklahoma, an Oklahoma Municipal Corporation, its successors and assigns (collectively, the "City") at its principal office at 207 South. Cedar, Owasso, Tulsa County, Oklahoma 74055, or at such other place as may be designated in writing by the City, the principal sum of FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) or so much thereof as shall have been advanced hereon, together with interest on the unpaid portion of the principal balance computed from the date of each advance, until paid in full, at the rate of five point five percent (5.5%) per annum, principal and interest being deferred six (6) months from the delivery hereof and receipt of initial draw down; thereafter six (6) bi-annual payments of interest only to begin after the deferral period, with principal and interest payments thereafter amortized over the last eighty- four (84) months of the loan all as shown on Exhibit "A" hereto, same being Owasso Public Golf Authority Revenue Anticipation Note Debt Service Schedule, which. shall govern the repayment of this obligation. The installments of interest and principal set forth above shall be due and payable as aforesaid until the full principal amount of this Revenue Anticipation Note and all interest hereon have been paid in full.. Payment in advance of one or more of the unmatured principal installments hereof may be made by the Borrower and will be applied. first, to interest at the aforesaid rate on the unpaid amount of said loan, accrued to date of receipt of said payment, and the balance of each payment shall be applied to the principal. Th(--� Borrower may prepay this Note, in whole or in part, at any time prior to the due date hereof, without penalty. If any payment shall be due on. a Saturday or Sunday or upon any banking holiday of the holder hereof, such payment shall be due and payable on the next succeeding banking day and interest shall accrue to such day. `Ph.i..s Revenue Anticipation Note is the Revenue Anticipatin Note referred to in that certain Loan and Security Agreement dated as ow opga.ran. of the , , 15 day of June 1993 _ j_h_ by and between the Borrower and the City (the "City") given and entered into to secure this Note, the proceeds of which the City is loaning to the Borrower to finance its costs of completion of its golf course facility in Owasso, Tulsa County, Oklahoma. Except as may be herein otherwise specifically provided, the rights and obligations of the Borrower and the City arising by virtue of this Revenue Anticipation Note as well as the Agreement above referred to, shall be governed by the Agreement as if same were specifically incorporated herein, such Agreement surviving the issuance, execution and delivery of this Revenue Anticipation Note. The City may, at any time prior to the due date of final payment of this Revenue Anticipation Note call for an early pre-payment in whole, or in part, if it is determined by the City, in it's sole discretion, that the funds heretofore advanced pursuant to this Revenue Anticipation Note are needed by the City for its operations, governmental or proprietary, and the Borrower is afforded a reasonable opportunity to obtain reasonably satisfactory refinancing hereof. All parties (makers, sureties, guarantors and all others now or hereafter liable for payment of all or any portion of the indebtedness evidenced by this Revenue Anticipation Note) severally waive demand., presentment, notice of dishonor, protest, notice of protest, and diligence in collecting this Revenue Anticipation Note and diligence in. bringing and prosecuting suit against any party bound hereby, and agree that no extension, renewal or partial payment, or release or substitution of collateral before or after maturity, with or without notice, shall release or discharge the obligation of any party. Upon the failure to pay when due any installment in principal or interest, the holder hereof shall be entitled, at its option, to declare the unpaid principal balance of this Revenue Anticipation Note to be immediately due and payable. A failure by such holder to exercise such option will not constitute a waiver of the right to exercise the same in the event of any subsequent default. Such rights of acceleration are cumulative and in addition to any right of acceleration provided in any writing or writings now or hereafter securing or purporting to secure payment of the indebtedness evi-d.enced hereby. After maturity (whether by extension, accelration or otherwise), interest shall accrue hereon at a rate of interest of ten percent (100) per annum. If this Promissory Note is placed with an attorney for collection upon any default, or to defend or enforce any rights of the holder(s) hereunder or any instrument securing payment of this Revenue Anticipation Note, or if this Revenue Anticipation Note is collected through bankruptcy or other judicial proceeding, the Borrower agrees to pay the reasonable attorney fees of the holder(s) of this Revenue Anticipation Note and all reasonable costs and expenses incurred in connection therewith. ow-opga.ran 2 This Revenue Anticipation Note together with all extensions, renewals substitutes, modifications and/or changes in form hereof is secured by the Security Agreement which respects certain property and. interests located in Tulsa County, Oklahoma. By Tom M. Rikkola, Jr., Chairman FARMEWME Mt rc .. B Oultd Ze -I Secretary Delivery receipted this 2 d ay y f ,3,ad o '� JZZ17W, _, 1993. I By 8 Randolph, Maydr INSURNM Marcij,) Boutwe-A., City Clerk ow-opga-ran 3 400,000.00 160,050.00 560,00.00 Dated 7/1/93 with Delivery of 7/1/93 EXHIBIT "A" to Revenue Anticipation Note OWASSO PUBLIC GOLF AUTHORrTY REVENUE AI\MCIPATION NOTE DEBT SERVICE SCHEDULE DATE -- ----- ---------------------------------------------------------------------------- PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL - - - - - -- 111194 11,000.00 11,000.00 11,000.00 711/94 11,000.00 11,000.00 111/95 11,000.00 11,0()0.00 22,000.00 7/1195 11,000.00 11,000.00 111/96 11,000.00 11,000.00 22,000.00 7/1/96 11,000.00 11,000.00 1/1/97 40,000.00 5.500000 11,000.00 51,000.00 62,000.00 7/1/97 9,900.00 9,900.00 1/1/98 45,000.00 5.500000 9,900.00 54,900.00 64,800.00 7/1/98 8,662.50 8,662.50 1/1/99 45,000.00 5.500000 8,662.50 53,662.50 62,325.00 7/1/99 7,425.00 7,425.00 1/1/00 50,000.00 5.500000 7,425.00 57,425.00 64,850.00 7/1/00 6,050.00 6,050.00 1/1/01 50,000.00 5.500000 6,050.00 56,050.00 62,100.00 7/1/01 4,675.00 4,675.00 111102 55,000.00 5.500000 4,675.00 59,675.00 64,350.00 711/02 3,162.50 3,162.50 1/1/03 55,000.00 5.500000 3,162.50 58,162.50 61,325.00 7/1103 1,650.00 1,650.00 1/1/04 -- - - - - -- 60,000_00- ------- 5.500000 1,650.00 ------------------------------- 61,650.00 63,300.00 400>•00 160,050.00 560,050.00 400,000.00 160,050.00 560,00.00 Dated 7/1/93 with Delivery of 7/1/93