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HomeMy WebLinkAbout1989-1809 - Ordinance - 05/17/1989ORDINANCE NO. 1809 ORDINANCE AUTHORIZING TERMINATION OF AN ESCROW AGREEMENT WHEREAS, pursuant to Ordinance No. 1747, adopted on April 28, 1988 (the "Contractual Obligations Ordinance") the City Council of the City of College Station, Texas (the "Issuer") issued $1,500,000 City of College Station, Texas Public Property Finance Contractual Obligations, Series 1988, dated Nay 15, 1988 (the "Contractual Obligations") for the purpose of providing funds to acquire or purchase personal property; WHEREAS, in connection with the issuance of the Contractual Obligations the Issuer entered into an Escrow Agreement with First City National Bank of Houston (now First City, Texas - Houston, N.A.). Houston, Texas, dated as May 15, 1988 (the "Escrow Agreement"); WHEREAS, the Contractual Obligations are no longer outstanding having been paid with the proceeds of the Issuer's refunding bonds; WHEREAS, the continuing control of the Issuer's funds under the Escrow Agreement results in unnecessary bookkeeping procedures and expenses to the Issuer; and WHEREAS the Escrow Agent has agreed to terminate the Escrow Agreement. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, THAT: Section 1. The City Manager is hereby authorized to enter into the Termination of Escrow Agreement substantially in the form attached hereto as Exhibit A and incorporated by reference herein for all purposes. Section 2. The Issuer hereby reconfirms its covenants in the Contractual Obligations Ordinance concerning the use of the proceeds of the Contractual Obligations and directs that the money be transferred from the Escrow Agent to be deposited in a depository bank of the Issuer, secured as all other funds of the Issuer, and used for only the purposes specified in the Contractual Obligations Ordinance. Section 3. This Ordinance shall take effect to be in full force and affect from and after the date of its passage and it is so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, this loth day of May 1989 at which meeting a quorum was present. r1 Y ATTEST: Mayor, Ci Col Station, Texas ti u`1 ty Secrax! City of College Saii n, Texas (SEAL) n�5628 ORDINANCE CERTIFICATE We, the undersigned Mayor and City Secretary of the City of College Station. Texas the "City"), hereby certify as follows: 1. The City Council of the City the "Council", convened in Regular session. open to the public, on May 10 1989. at the meeting place designated in the notice (the "Meeting"). and the roll was called of the members, to wit: Larry J. Ringer, Mayor, ana Fred Brown, Mayor ProTem; and the following Councilmembers: Dick Birdwell. Jim Gardner, Dick Haddox. Lynn Mcllhaney, and Vernon E. Schneider. All members of the Council were present except Dick Birdwell, Vernon Schneider thus constituting a quorum. Whereupon among other business, the following was transacted at the Meeting a written ORDINANCE AUTHORIZING TERMINATION OF AN ESCROW AGREEMENT (the "Ordinance"i was duly, introduced for the consideration of the Council and read in full. It was then duly moved by Councilmember Brown and seconded by Councilmember McIlhaney that the Ordinance be finally passed and adopted: and, after due discussion, such motion, carrying with it the adoption of the Ordinance prevailed and carried by the rollowing vote: AYES: 5 NOES: 0 ABSTENTIONS: 0 A true, full, and correct copy of the Ordinance adopted at the Meeting is attached to and follows this Certificate; the Ordinance has been duly recorded in the Council's minutes of the Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Council's minutes of the Meeting pertaining to the adoption of the Ordinance; the persons named in the above and foregoing paragraph are duly chosen, qualified, and acting officers and members of the Council as indicated therein; each of the officers and members of the Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the Meeting. and that the Ordinance would be introduced and considered for adoption at the Meeting and each of such officers and members consented. in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and public notice of the time. place. purpose of the Meeting was given, all as required by Article 6252-17. Vernon's Texas Civil Statutes, as amended. 3. Dian Jones is the fully appointed and acting City Secretary of the City. SIGNED AND SEALED THIS may 17 1989 City Secr t ry, City of College ?M3lor o ollege Station. S tion, Texas Texas (CITY SEAL) 1►05629 TERMINATION OF AN ESCROW AGREMENT WHEREAS, the City of College Station, Texas (the "Issuer") and First City, Texas - Houston, N.A., formerly First City National Bank of Houston, Houston, Texas, as Escrow Agent (the "Escrow Agent") entered into that certain Escrow Agreement, dated as of May 15, 1988 (the "Agreement") in order to provide for the deposit of and accounting for the proceeds of $1,500,000 City of College Station, Texas, Public Property Finance Contractual Obligations, Series 1988 (the "Contractual Obligations") authorized by an Ordinance adopted by the Issuer on April 28, 1988 (the "Ordinance"); WHEREAS, the Ordinance provides that the Contractual Obligations are issued for certain lawful purposes which the Issuer has covenanted to comply with; WHEREAS, the continuation of the Escrow Fund as required by the Agreement is, however, administratively cumbersome and results in unnecessary costs to the Issuer; NOW THEREFORE in consideration of the mutual under- standings, promises, and agreements herein contained and in consideration of $10.00 duly paid by the Issuer to the Escrow Agent concurrently herewith, the receipt of which is hereby acknowledged, the Issuer and the Escrow Agent mutual- ly undertake, promise, and agree for themselves and the respective representatives and successors, as follows: Section 1. The Agreement is hereby repealed, rescind- ed, and annulled. Section 2. Money remaining in the Escrow Fund created by the Agreement shall immediately be transferred to the Issuer, and the Issuer agrees and covenants that such money shall be used for the purposes set forth in the Ordinance and shall be deposited as other funds of the Issuer. Section 3. The Issuer hereby acknowledges that the Escrow Agent has duly and faithfully performed its functions and duties under the Agreement, and to the extent it legally may, the Issuer indemnifies the Escrow Agent from any liabilities, claims, or causes of action which might arise under the Agreement. 0056)30 EXECUTED AS OF THIS / 7 Ylk day of , 1989. CITY OF COLLEGE STATION 4A Cit Man er ATTEST: Ci ecretary (SEAL) , FIRST CITY, TEXAS - HOUSTON, N.A., HOUSTON, TEXAS it, ATTEST: cp -- Tit 'URrjO}�'TmuQ' urrmeER (SEAL) EXECUTION PAGE FOR TERMINATION OF AN ESCROW AGREEMENT 2 n05631