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HomeMy WebLinkAboutORDINANCES-1978-109-O-78ORDINANCE NO. 109-0-78 AN ORDINANCE authorizing the issue of $25,000,000 Residential Mortgage Revenue Bonds, Series 1979A of the City of Evanston, Cook County, Illinois. WHEREAS, the City of Evanston, Cook County, Illinois (the "City") has pursuant to its home rule powers granted under the 1970 Constitution of the State of Illinois duly adopted on November 13, 1978, an enabling ordinance (the "Enabling Ordinance") (1) to provide for and promote the public health, safety, morals and welfare; (2) to assist low and moderate income persons in acquiring and owning decent, safe and sanitary housing which they can afford; (3) to promote the integration of families of varying economic means; and (4) to preserve and increase the City's ad valorem tax base; and WHEREAS, the City has developed a program with Evanston Bank, Evanston Federal Savings & Loan Association, First Federal Savings and Loan Association of Chicago, First Federal Savings and Loan Association of Wilmette, First National Bank and Trust Company of Evanston, State National Bank, Talman Federal Savings and Loan Association of Chicago and Telegraph Savings & Loan Association (the "Participants") for the purchase without recourse from the Participants of home mortgages (as defined in the Enabling Ordinance) which will be serviced by the Participants; and WHEREAS, in furtherance of the purposes set forth in the Enabling Ordinance the City wishes to provide for the financing of the acquisition of the home mortgages by the sale and issuance of its revenue bonds, and authorizing such actions as might be required to implement such stated intention; and WHEREAS, the City keeping with the public purposes hereinabove set forth has identified the following goals of the program: -Encouragement of home ownership by middle income families being priced out of the housing purchase market by temporary increases in the mortgage interest rate. -Providing equal opportunity housing in the sense that • many households, through inflation and high interest rates, have been priced out of the housing market. -Attracting employees of the City to be able to live within the community. -Attracting people who work in Evanston to be able to buy and live in Evanston. -Promoting of the integration of families of varying economic means throughout the community. -Encouragement of home improvements which maintain the stability of the City and increases the tax base of the City. -Maintenance of a viable, active real estate market in an inflationary period with rising interest rates. -Providing lower cost financing of home ownership to previous renters experiencing possible dislocation through conversions of their apartments to condominiums at a time when mortgage rates are abnormally high. -Providing financing of an orderly real estate market and a supply of mortgage money at realistic interest • rates at a time when rates are rising. WHEREAS, pursuant to and in accordance with the provisions of the Enabling Ordinance, the City is now prepared to proceed with financing the acquisition of such home mortgages and to issue_ and sell $25,000,000 in principal amount of its Residential :Mortgage Revenue Bonds, Series 1979A (the "Bonds"), such Bonds to be secured by the Indenture (hereinafter defined) and, except to the extent payable from Bond proceeds, certain insurance proceeds or moneys from the investment thereof, to be payable solely from the revenues and receipts and other amounts received by the City. pursuant to the Sale and Service Agreement (hereinafter .defined); and WHEREAS, A. G. Becker Incorporated as representative of a group of underwriters (the "Representative"), has submitted to ,the City a form of Bond Purchase. Contract (hereinafter defined) setting forth the Representative's proposal to purchase the Bonds; and WHEREAS, copies of the Sale and Service Agreement, Indenture, Bond Purchase Contract, Preliminary Official Statement and Official Statement have been presented to and are before this meeting; NOW, THEREFORE, Be It Ordained by the City Council of the City of Evanston, Cook County, Illinois: is this 1. The following words and terms as used in this ordinance shall have the following meanings unless the context clearly indicates another or different meaning or intent: "Bonds" shall mean the Residential Mortgage Revenue Bonds, Series 1979A of the City in an aggregate principal amount of $25,000,000 authorized to be issued pursuant to this ordinance -2- and Article II of the Indenture. "Bond Purchase Contract" shall mean.the Bond Purchase Contract to be entered into between the City and the Represen- tative, as approved by this ordinance, relating to the purchase of the Bonds. "City" shall mean the City of Evanston, Cook County,. Illinois. "Custodian" shall mean Continental Illinois National Bank and Trust Company of Chicago and any successor acting as such under the Indenture. "Indenture" shall mean the Trust Indenture dated as of January 1, 1979 among the City, the Trustee, and the Custodian, • as approved by this ordinance, as the same may be supplemented from time to time in accordance with its terms. "Mortgage Loans" shall mean the Mortgage Loans to be acquired pursuant to, and as defined in, the Sale and Service Agreement. "Official Statement" shall mean the Official Statement as further described in Section 11 hereof. "Participants" shall mean and include the following home mortgage lending institutions which have agreed to originate and service Mortgage Loans pursuant to the Sale and Service Agreement: Evanston Bank, Evanston Federal Savings & Loan Association, First Federal Savings and Loan Association of Chicago, First Federal Savings and Loan Association of Wilmette, First National Bank and Trust Company of Evanston, State National Bank, Talman Federal Savings & Loan Association of Chicago and Telegraph Savings & Loan Association. "Preliminary Official Statement" shall mean the Preliminary Official Statement as further described in Section 10 hereof. "Representative" shall mean A. G. Becker Incorporated, in its capacity as the representative of•a group of under- writers. "Sale and Service Agreement" shall mean the Sale and • Service Agreement dated as of January 1, 1979 among the City and the Participants as approved by this ordinance, and as the same may be amended from time to time. "Trustee" shall mean First Wisconsin Trust Company and any successor acting as such under the Indenture. • -3- Section 2. Pursuant to the Enabling Ordinance, the City does hereby authorize the financing of the acquisition of the Mortgage Loans in accordance with the terms of the Sale and Service Agreement and does hereby find and declare that this ordinance is being enacted pursuant to the powers granted by the Enabling Ordinance and that the issuance of the Bonds is for the public purposes as set forth in the Enabling Ordinance. Section 3. To provide for the financing of the cost of the acquisition of the Mortgage Loans, the City does hereby authorize the issuance of revenue bonds of the City under the Enabling Ordinance, to be designated "City'of Evanston, Cook County, Illinois, Residential Mortgage Revenue Bonds, Series 1979A" in the aggregate principal amount of $25,000,000. The • Bonds shall be issued in the forms and denominations set forth in the Indenture; shall be dated, except as otherwise provided in the Indenture, January 1, 1979; shall be numbered as provided in the Indenture; shall mature serially as provided.in the Indenture, but not later than January 1, 2009; shall bear interest payable semi-annually at the rate or rates as set forth in the Bond Purchase Contract; shall be subject to redemption prior to maturity upon the terms and conditions set forth in the Indenture; and shall be sold to the underwriters at the price in the Bond Purchase Contract. Section 4. The Bonds shall be limited obligations of the City and, except to the extent payable from Bond proceeds, certain insurance proceeds or moneys from the investment thereof, shall be payable solely from the revenues and receipts and other amounts received by or on behalf of the City pursuant to the. Sale and Service Agreement. The Bonds and interest thereon shall not be deemed to constitute a debt or liability of the City, the State of Illinois or any political subdivision thereof, and their issuance shall not, directly or indi^ectly or contingently, obligate the City, the State of Illinois o.r any political subdivision thereof to levy any form of taxation therefor or to make any appropriation for their payment, nor shall the Bonds be construed to create any moral obligation on the part of the City, the State of Illinois or any political subdivision thereof with respect to their payment. Nothing in -the Bonds or in the Indenture or the proceedings of the City authorizing the issuance of the Bonds or in the Enabling Ordinance shall be construed to authorize the • City to create a debt of the City, the State of Illinois or any political subdivision thereof within the meaning of any const=tutional or statutory provision of the State of Illinois. The nature of the obligation represented by the Bonds is as more fully set forth in the Indenture. Section 5. The City does hereby covenant and agree not to_issue other revenue bonds to purchase or otherwise finance single family residential mortgage loans until all of -4- the proceeds of the Bonds deposited in the Acquisition Fund provided in the Indenture have been used, or committed to be used, as provided in the Indenture. Section 6. The Bonds shall be executed on behalf of the City in the manner provided in the Indenture. If any of the officers who shall have signed or sealed any of the Bonds shall cease to be such officers of the City before the Bonds so signed and sealed shall have been actually authenticated by the Custodian or delivered by the City, such Bonds nevertheless may be authenticated, issued and delivered with the same force and effect as though the person or persons who signed or sealed such Bonds had not ceased to be such officer or officers of the City; and also any such Bonds may be signed and sealed on behalf of the City by those persons who, at the actual date of the execution of such Bonds, shall be the proper officers of the City, . although at the nominal date of such Bonds any such person shall not have been such officer of the City. Section 7. The Indenture is hereby approved in sub- stantially the form attached hereto as Exhibit A, and the City Manager is hereby authorized to execute, acknowledge and deliver the Indenture, attested by the City Clerk, with such changes therein as do not alter the purpose or intent thereof as shall be approved by such persons executing such document, their execution to constitute conclusive evidence of such approval. Section 8. The Sale and Service Agreement between the City and the Participants is hereby approved in substantially the form attached hereto as Exhibit B, and the City Manager of the City is hereby authorized to execute, acknowledge and deliver the City's acceptance of the Sale and Service Agreement, attested by the City Clerk, with such changes therein as do not alter the purpose or intent thereof as shall be approved by such persons executing such document, their execution to constitute conclusive evidence of such approval. The Participants shall undertake to accept and process applications for Mortgage Loans on a non- discriminatory, "first -come, first -served" basis. Section 9. The Bond Purchase Contract is hereby approved in substantially the form attached hereto as Exhibit C, and the City Manager is hereby authorized to execute and deliver. the Bond Purchase Contract on behalf of the City with such changes as do not alter the purpose or intent thereof as shall be approved by the City Manager, • his execution to constitute conclusive evidence of such approval, and the sale of the Bonds pursuant to the Bond Purchase Contract is hereby authorized. Section 10. The Preliminary Official Statement is hereby approved in substantially the form attached hereto as Exhibit D. and the City Manager is hereby authorized to execute and deliver -5- the Preliminary Official Statement on behalf of the City with such changes as do not alter the purpose or intent thereof, his execution to constitute conclusive evidence of such approval. Section 11. The Official Statement is hereby approved in substantially the form attached hereto as Exhibit D, and.the City Manager is hereby authorized to execute and deliver the Official Statement on behalf of the City with such changes as do not alter the purpose or intent thereof, his execution to constitute conclusive evidence of such approva*l. Section 12. The interest rate on the Mortgage Loans shall be as specified and provided in the Sale and Service Agreement, it being understood that the difference'between the interest rate on the Mortgage Loans and the interest rates on the Bonds represents the costs of insurance premiums, amortized costs of the expenses of issuing the Bonds, fees of servicing and administering the Mortgage Loans, Trustee and Custodian fees, and amortized amounts to secure the payment of the Bonds. Section 13. The authorized officials of the City are hereby empowered to execute and deliver the Bonds and all docu- ments and other instruments which may be required under the terms of the Bond Purchase Contract, the Indenture, the Sale and Service Agreement and this ordinance. For purposes of this section "authorized officials of the City" shall mean the Mayor, City Clerk, and City Manager. Section 14. All ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this ordinance are to the extent of such conflict hereby repealed. Section 15. This ordinance shall become effective upon its adoption and approval. Introduced: December //, 1978. Adopted: December �, 1978. Approved: December L, 1978. Attest: City C1 Ark APPROVED yor Pro4'1 ity of vanston, Cook Couninois 21-19