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HomeMy WebLinkAbout3-12-98-6d - Resolution - 03/12/1998q so[ution RESOI,UTION NO-'~ I~'~ -(m~' ~ ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS RELATING TO THE APPROVAL OF THE ISSUANCE OF CERTAIN STUDENT LOAN REVENUE BONDS AND OTHER FORMS OF INDEBTEDNESS OF THE GREATER TEXAS STUDENT LOAN CORPORATION AND THE EXECUTION AND DEL[VERY OF A FINANCING AGREEMENT BY' TI~E CORPORATION; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of College Station, Texas (the "City") Ires heretofore requested that tho Greater Texas Student Loan Corporation (formerly, Greater East Texas Higher Education Authority, Inc ) (the "Corporation") operate pursuant to Section 53 47(e) of the Texas Education Code, V T C A. ("Education Code"O, for the purpose of furthering educational opportumties for students: and WHEREAS, thc Corporation has pursued such purpose by prowdmg funds to acquire certain eligthte loans which are guaranteed or insured under the pro,asions of the Higher Education Act of 1965, as amended (the "Act"); a~d WHEREAS, the Board of Directors (the "Board") of the Corporation has heretofore found and deterrmned that it would be in the best interest of the Corporation and the students of parents of students sermced by the Corporation that additional funds be provided for the ongoing purposes of the Corporation; and WHEREAS, to secure such funding, the Board proposes to tssue, from tune to time and in one or more series, its Greater Texas Student Loan Corporation Student Loan Revenue Bonds (coLlectively, the "Bonds") pursuant to a Master hidenture, dated as of May 1, 1995 (the "Master Indenture'), at an mtorest rate not to exceed the maxumm~ rate percmtted by law, and in such sones and at such tunes as the Board may detemune. and, as a portion thereof, proposes to issue, pursuant to a supplemental indenture, a series of bonds in an aggregate principal amount of up to $35,000,000 and designated as the Series 1998 Bonds (the "Series 1998 Bonds"), the interest on which is excludable from gross income for the purposes of federal income taxation: and WHEREAS, Sectmn 147(0 of the [memal Revenue Code of 1986, as amended (the "Code") requires that the Bonds and the use of the proceeds thereof for acquiring student loans (the "Project") be approved by the "applicable elected representative" (as defined tn the Code) of the Cit5 after a public hearing follov, ang reasonable public notice; and WHEREAS, the Mayor of the City, has been requested to approve, as the "applicable elected representative" of the City, the issuance of the Bonds and the Project tn accordance with the requirements of the Code; and WHEREAS, the City Council of the County desires to authorize the Mayor of the City to approve the issuance of the Bonds and the ProJect for purposes of the Code; and WHEREAS, the Corporation proposes to enter into a certain Financing Agreement (the "Financing Agreement") with and among the Greater East Texas Servicing Corporation, [nc, Cha~e Bank of Texas, National Association and Student Loan Marketing Association, th connection tvith the issuance o£the Series 1998 Bonds; and WHEREAS, the Corporation has entered into Ime of credtt agreement m the amount of $40,000,000 evidenced by a certain Financing Agreement dated May 15, 1997 (the "Line of Credit Financing Agreement") with and among the Greater East Texas Servicing Corpora~lon. Inc, Chase Bank of Texas, National Association and Student Loan Marketing Assocmtion; and WHEREAS, the Corporatton has made no draxvs under such Lme of Credit Financing Agreement pending approval by the Cites of Bryan and College Stu on, Texas: and WHEREAS the Education Code requires the govermng body of the City to approve the ssuance of the Bonds and other forms of indebtedness issued by the Corporat*on; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, THAT All of the recitals contained m the preamble hereof are found to be t. me and are adopted as the findings of tlus City Cocci[ The issuance of the Series 1998 Bonds, tbr the purposes and m the mount aforesaid, the Project and the execution and dehvery of the Financing Agreement by the Corporation, arc hereby m all things approved The Mayor of the City is hereby authorized and directed to execute such certificate of approval ~ may be requn'ed in connection with the issuance and delivery of the Series 1998 Bonds The execution and delivery by the Corporation of the Line of Credit Financing Agreement is hereby and all dnngs approved In no event dnes the City assume any responsibility In connection with admtmstrataon of the Corporation's student loan program, the issuance and dnlivery of the Bonds or the Series [998 Bonds or other indebtedness issued by the Corporation The Corporation shall hold hamdess and indemnify the Ci~' for any negligent or unintentional acts of the Corporation, its agents, emp oyees or assigns in the fi~lBllment of the purposes as heretn expressed and/or the Bonds and Financing Agreements. Tlus resolution shall be effective from and after its adOfftWn PRESENTED, PASSEDANDADOPTEDonthtsI~ davofMarch, 1998byavoteof~ayesand noes at a regular meeting of the City Council of the Ci~of ~o[lege Station, Texas Mayor A'ITEST Cit~ Secretm~ APPROVED AS TO FORM City Attomey~//