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HomeMy WebLinkAbout1-27-2000-13.14 - Resolution - 01/27/2000RESOLUTION NO. 1-27-2000-13.14 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 DELIVERY OF A FINANCING AGREEMENT BY THE CORPORATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of College Station, Texas (the "City") has heretofore requested that the 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"), for the purpose of furthering educational opportunities for students; and WHEREAS, the Corporation 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 (the "Act"); and WHEREAS, the Board of Directors (the "Board") of the Corporation has heretofore found and determined that it would be in the best interest of the Corporation and the students of parents of students serviced 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 issue, from time 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 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 may determine, and, as a portion thereof, proposes to issue, pursuant to supplemental indentures, two series of bonds in aggregate principal amount, respectively, of up to (i) $35,000,000 and designated as the Series 2000A Bonds (the "Series 2000A Bonds"), the interest on which is excludable from gross income for the purposes of federal income taxation, and (ii) $100,000,000 and designated as the Series 2000B Bonds (the "Series 2000B Bonds"), the interest on which is not excludable from federal income taxation; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") requires that the Series 2000A Bonds and the use of the proceeds thereof for acquiring student loans (the "Project") be approved by the "applicable elected representative" (as defined in the Code) of the City after a public hearing following 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 Series 2000A Bonds and the Project pertaining thereto in 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 Series 2000A Bonds and the Project pertaining thereto 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, Inc., Chase Bank of Texas, National Association and Student Loan Marketing Association, in connection with the issuance of the Series 2000A Bonds and the Series 2000B Bonds (collectively, the "Bonds"); and WHEREAS, due to the scarcity of tax-exempt funds and restrictions on their use, the Corporation must enter into borrowings under taxable lines of credit and credit agreements to insure that it has sufficient funds for the purchase of student loans; and WHEREAS, the Corporation requests that the City approve the Corporation's entering into borrowing through taxable lines of credit and credit agreements, which may vary in principal amount from time to time WHEREAS, the Corporation requests that the City approve the Corporation's entering into borrowing through taxable lines of credit and credit agreements, which may vary in principal amount from time to time (hereinafter called the "Borrowings"); 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 Corporation; NOW, THEREFORE, 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. The issuance of the Series 2000A Bonds and the Project pertaining thereto, the issuance of the Series 2000B Bonds, in each case for the purposes and in the amounts aforesaid, and the execution and delivery of the Financing Agreement by the Corporation, are hereby in all things approved. The Mayor of the City is hereby authorized and directed to execute such certificate of approval as may be required in connection with the issuance and delivery of the Series 2000A Bonds. The City Council hereby approves the currently outstanding taxable borrowings of the Corporation and further approves the Corporation's entering into additional taxable Borrowings for the purpose of purchasing student loans which are guaranteed under the provisions of the Act; provided, however, that the City of College Station, Texas, shall never be responsible for the payment of principal of or interest on such Borrowings of the Corporation. In no event does the City assume any responsibility in connection with administration of the Corporation's student loan program, the issuance and delivery of the Bonds or other indebtedness issued by the Corporation. The Corporation shall hold harmless and indemnify the City for any negligent or unintentional acts of the Corporation, its agents, employees or assigns in the fulfillment of the purposes as herein expressed and/or the Bonds and Financing Agreements. o This resolution shall be effective from and after its adoption. PRESENTED, PASSED AND ADOPTED on this 27th day of January, 2000 by a vote of 5 ayes and 0 noes at a regular meeting of the City Council of the City of College Station, Texas. L~nn Mgllnaney, Mayor City Secretary APPROVED AS TO FORM: City A~tor~V./ ,/-~//~. '/