HomeMy WebLinkAbout02-22-96-R-9 - Resolution - 02/22/1996( so[ution
NUMBER 2-22-96-R-9
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, INC. (FORMERLY KNOWN AS GREATER EAST TEXAS
HIGHER EDUCATION AUTHORITY, INC.) AND THE EXECUTION AND
DELIVERY OF A FINANCING AGREEMENT BY THE ISSUER; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of College Station, Texas ("City") has heretofore requested that
Greater Texas Student Loan Corporation, Inc. [formerly known as Greater East Texas
Higher Education Authority, Inc.] ("Issuer") operate pursuant to Section 53.47(e) of the
Texas Education Code, V.T.C.A. ("Education Code"), for the purpose of furthering
educational opportunities for students, and
WHEREAS, the Issuer has pursued such purpose by providing funds to acquire certain
eligible loans which are guaranteed or insured under the provisions of the Higher Education
Act of 1965, as amended ("Act"); and
WHEREAS, the Board of Directors ("Board") of the Issuer, has heretofore found and
determined that it would be in the best interest of the Issuer and the students or parents
of students serviced by the Issuer that additional funds be provided for the ongoing purposes
of the Issuer; and
WHEREAS, to secure such funding, the Board proposes to issue, from time to time and
in several series its Greater Texas Student Loan Corporation, Inc. Student Loan Revenue
Bonds, (collectively the "Bonds"), pursuant to a Master Indenture dated as of February 15,
1996 (the "Master Indenture"),at an interest rate not to exceed the maximum rate permitted
by law, and in such series and at such times as the Board of Directors may determine, and,
as a portion thereof, proposes to issue, pursuant to one or more supplemental indentures,
two series of Bonds in an aggregate principal amount up to $79,250,000 and designated
Series 1996A Bond and Series 1996B Bonds (collectively, the "Series 1996 Bonds"), the
interest on which is excludable from gross income for the purposes of federal income
taxation; and
WHEREAS, the Issuer proposes to enter into a certain Financing Agreement (the
"Financing Agreement") with and among the Greater East Texas Servicing Corporation, Inc.
Texas Commerce Bank National Association and Student Loan Marketing Association, in
connection with the issuance of the Bonds; and
WHEREAS, the Education Code requires the governing body of the City to approve
the issuance of the Bonds and other forms of indebtedness issued by the Issuer; and
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS:
That all of the recitals contained in the preamble hereof are found to be true and are
adopted as the findings of this City Council.
That the issuance of the Series 1996 Bonds, for the purposes and in the amount
aforesaid and the execution and delivery of the Financing Agreement by the Issuer, are
hereby in all things approved.
In no event does the City assume any responsibility in connection with administration
of the Issuer's student loan program, the issuance and delivery of the Bonds or the
payment of any of the Bonds or other indebtedness issued by the Issuer.
The Issuer shall hold harmless and indemnify the City for any negligent or
unintentional acts of the Issuer, its agents, employees, or assigns in the fulfillment of the
purposes as herein expressed and/or the Bonds and, Financing Agreements.
This resolution shall be effective from and after its adoption.
PRESENTED, PASSED AND ADOPTED on this 22nd. day of FEBRtJ/~RY ,1996 by
a vote of 6 ayes and 0 nays at a regular meeting of the City Council of the City of
College Station, Texas.
TFEST:
City Secretary
APPROVED AS TO FORM:
(~>~-'~t~ Attorney