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Home My WebLink About2005 01_Revenue Anticipation Note 2million Vanguard Car Rental_2005.01.18WHEREAS, 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 significant nature and for long term investments that might produce a higher yield; WHERE, AS, the City Council of the City of Owasso, Oklahoma, finds that investment opportunities are problematical due to legal restrictions placed upon the placement of public funds in the market-, WHEREAS, the City Council of the City of Owasso, Oklahoma, has determined that the Owasso Economic Development Authority, an Oklahoma Public Trust, having the City of Owasso, Oklahoma, as its beneficiary, has a present need to raise additional funds for the Vanguard Project; WHEREAS, the City Council of the City of Owasso, Oklahoma, finds that a present need in the amount not to exceed Two Million Dollars ($2,000,000) exists on the part of the Owasso Economic Development Authority, and that the Owasso Economic Development Authority, is desirous of obtaining such funding from the City of Owasso, Oklahoma; 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, 1710r, TAEMFOM, BE IT __?U_SOt7TED BT TAE CITY C04NCIL 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 and 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 Economic Development Authority, an Oklahoma Public Trust having the City of Owasso, Oklahoma as its beneficiary, in an amount not to exceed Two Million Dollars ($2,000,000.00). The City Council of the City of Owasso, Oklahoma, hereby approves the proposed Agreement and Revenue Anticipation Note to be issued by the Owasso Economic Development 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 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 Economic Development Authority exhibited hereto and such further agreements and documents and to take such actions as such officer or officers may deem necessary or desirable in order to carry out and perform the investment and to effect the purposes thereof and to consummate the transaction contemplated thereby. SECTION THREE. That in accordance with public finance provisions of the Statutes of the State of Oklahoma relating to municipal investment of funds, 68 O.S. Section 348.1(5), the income received by the City of Owasso from the investment herein 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. Such pro rata distribution of income shall be made on the percentage basis that the Contributing Fund within the Consolidated Cash Amount of the City of Owasso, Oklahoma, 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 City of Owasso, Oklahoma, subsequently closed by the City Council of the City of Owasso, Oklahoma, shall receive no further pro rata distributions of income. <19 PASSED AND APPROVED this A? day of January 2005. Sherry Bishop/,,�'City'Clerk Ronald D. Cates, City Attorney CITY OF OWASSO, OKLAHOMA a, OrPICYAL By: 16 A S E A L 0 Susan Kimball, MaybT' Sherry Bishop/,,�'City'Clerk Ronald D. Cates, City Attorney REVENUE ANTICIPATION NOTE OF THE OWASSO ECONOMIC DEVELOPMENT AUTHORITY Dated as of the 28`' day of June, 2005 Owasso, Tulsa County, Oklahoma $2,000,000.00 FOR VALUE RECEIVED, the undersigned, Owasso Economic Development Authority, an Oklahoma Public Trust, having the City of Owasso, as its beneficiary, 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 111 N. Main, Owasso, Tulsa County, Oklahoma 74055, or at such other place as may be designated in writing by the City, the principal sum of TWO MILLION AND NO /100 DOLLARS ($2,000,000.00). The Borrower shall repay this Note in quarterly installments of One Hundred Thousand and No /100 Dollars ($100,000.00). The initial quarterly installment shall be due on or before the 25'h day of October 2005 with succeeding quarterly installments in an identical amount due on the 25`h day of January, 2006, the 25'h day of April, 2006 and the 25 "' day of July, 2006. Identical quarterly installments shall be due on the above - designated dates of each succeeding year during the term hereof or until paid in full whichever the sooner. Interest on the unpaid portion of the principal balance until principal is paid in fill, at the rate of one -half of one percent (0.50 %) per annum thereupon shall be due and payable on the 25'h day of December, 2005 and on the 25'h day of July, 2006. All remaining principal and accrued interest shall be paid on or before the 25`h day of October, 2010. The 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. This Revenue Anticipation Note is the Revenue Anticipation Note referred to in that certain Loan dated as of the 18`h day of January, 2005, 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 provide financing of a Capital Venture/Economic Development Project in close proximity to the City of Owasso, Tulsa County, Oklahoma, consisting of lending for corporate headquarter relocation assistance to Vanguard Car Rental, USA. 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 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 its 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 the principal and or interest, the holder hereof shall be entitled, at its option, to extend the term or 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. After maturity (whether by extension, acceleration or otherwise), interest shall accrue hereon at a rate of interest of ten percent (10 %) per annum. If this Revenue Anticipation 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. ATTEST: STATE OF OKLAHOMA ss. G111101 201UP OWA SO ECONOMIC D LOPMENT AUT Y, an kl m ublic Trust B Frank Enzbrenner, CbJirman Before me, the undersigned, a Notary Public within and for said County and State, on the 28" day of June, 2005 personally appeared Frank Enzbrenner, known to me to be the identical person who executed the within and foregoing instrument in writing and acknowledged to me that they executed the same as their free and voluntary act and deed on behalf of Owasso Economic Development Authority for the uses and purposes therein set forth. IN NESS WHEREOF, I have ereunto set m hand and affixed my official seal the day and year last above wr' Julia i . Stevens, Notary (SEAL) Conmmission # 00013339 My Commission Expires August 11, 2008 2 Delivery receipted this _ _2 8 day of Jw�� OF O ~ OFFICIAL SEAL ON ATTEST: 2005. CITY OF OWASSO, OKLAHOMA By: a&L Stephen Ca audella, Vice Mayor