04-13-95-C-27 - Resolution - 04/13/1995P.F~OLUTION NO.
04-13-95-c-27
A RP_,SOLUTION OF THE CITY COUNCIL OF THE CITY OF COL!.~GI~ STATION,
TEXAS I~-;%TING TO TI-IH APPROVAL OF THE ISSUANCE OF CF_,RTAIN
STUDENT LOAN RE~ BONDS AND OTHER FORMS OF INDEBTEDNF_$S
OF TH~ GREATER EAST TEXAS HIGHF_~ EDUCATION AUTHORITY, INC. TI-IH
EXECUTION AND D]~LW'ERY OF A FINANCING AGI?RRM'~NT BY THE
AUTHORITY; AUTHORIZING ~ MAYOR OF THE CITY OF COLLEGE
STATION, TEXAS TO MAKE CERTAIN CP.~I/FICATIONS IN CONNECTION
THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of College Station, Texas ("City") has heretofore requested that
Greater East Texas Higher Education Authority, Inc. ("Authority") organize and 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
wFrFREAS, the Authority 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
WI-IRREAS, the Board of Directors ("Board") of the Authority, has heretofore found and
determined that it would be in the best interest of the Authority and the students or parents of
students serviced by the Authority that additional funds be provided for the ongoing purposes
of the Authority; and
WHEREAS, to secure such funding, the Board proposes to issue, from time to time and in
several series its Greater R~st Texas Higher Education Authority, Inc. Student Loan Revenue
Bonds, (collectively the "Bonds"), pursuant to a Master Indenture dated as of May 1, 1995 (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 $100,000,000 and designated Series 1995A Bond and
Series 1995B Bonds (Collectively, the "Series 1995 Bonds"), the interest on which is excludable
from gross income for the purposes of federal income taxation; and
WHRREAS, thc Authority proposes to enter into a certain Financing Agreement (thc
"Financing Agreement") with and among thc 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, in addition, the Authority proposes to enter into a taxable line of credit
agreement with Texas Commerce Bank National Association, Houston, Texas in the amount of
$1:5,000,000 and a taxable line of credit with the Student Loan Marketing Association in the
amount of $50,000,000 (collectively, the "Line of Credit Agreements"), in each case in
furtherance of the purposes of the Authority under the Education Code; and
~esolution 04-13-95-C-27 Page 2
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 Authority; and
WNItRBAS, Section 147(0 of the Internal Revenue Code of 1986, as amended ('the Code")
requires the approval of the issuance of bonds the interest on which is excludable from gross
income for purposes of federal income taxation, by the City's Chief elected executive officer
subsequent to a public hearing held in accordance with the provisions of the Code; now,
therefore
BE IT RESOLVF2) BY THE CITY COUNCIL OF THE CITY OF COLTJ~GE STATION,
TEXAS:
That all of the recitals contained in the preamble hereof are found to be true and are
adopted as the f'mdings of this City Council.
That the iss,once of the Series 1995 Bonds, for the purposes and in the amount aforesaid
and the execution and delivery of the Financing Agreement by the Authority, and the execution
and delivery by the Authority of the Line of Credit Agreements are hereby in all things
approved.
That after the Authority conducts a public hearing, following proper notice thereof,
regarding the issuance of the Series 1995 Bonds and the plan of f'mancing pertaining thereto and
the Authority's student loan program, the Mayor, or the Mayor Pro Tem, if the Mayor is
unavailable, may approve the issuance of the Bonds, the Financing Agreement and the Line of
Credit Agreements for the purposes, in the maximum amounts and at rates not to exceed the
highest lawful rates, all as set forth in the preambles hereof.
That the Mayor or the Mayor Pro Tem, if the Mayor should be unavailable, is hereby
authorized by the City Council to execute a certificate approving the issuance of the Series 1995
Bonds following the public hearing held in compliance with the requirements of Section 147(0
of the Code, regarding the public approval prerequisite to the exemption from federal income
taxation of interest on the Series 1995 Bonds.
In no event does the City assume any responsibility in connection with administration of the
Authority'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 Authority.
Resolution 04-13-95-C-27
Page
2
The Authority shall hold harmless and indemnify the City for any negligent or unintentional
acts of the Authority, its agents, employees; or assigns in the fulfdlment of the purposes as
herein expressed and/or the Bonds, Financing Agreements or Line of Credit Agreements he .rgin
proposed.
This resolution shall be effective from and after its adoption.
P .RF.S~, PASSED AND ADOPTED on this 13th day of April .,1995 by a
vote of ~ ayes and O nays at a regular meeting of the City Council of the City of
College Station, Texas.
A~TEST:
cii Secretary
APPROVED AS TO FORM:
~rney