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HomeMy WebLinkAboutORDINANCE 10-860 0 ORDINANCE NO.10-8 6 AN ORDINANCE PERMITTING THE TOWN OF ESTES PARK TO INCUR INDEBTEDNESS ON BEHALF OF THE MUNICIPALITY AND APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS RELATING THERETO WHEREAS,the Town of Estes Park,Larimer County,Colorado is by Title 31,Article 15,Part 3,Colorado Revised Statutes,as amended,is empowered to contract indebtedness on behalf of the Municipality by borrowing money for any public purpose including that in connection with supplying water;and WHEREAS,it is necessary for the Town of Estes Park to incur indebtedness to meet its obligations under the Series C Bonds of Municipal Subdistrict,Northern Colorado Water Conservancy District;and WHEREAS,it is necessary to authorize the contracting of indebtedness by ordinance and to approve the execution of documents in connection thereof. BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK,COLORADO: Section 1.Approvals and Authorizations.The proper officers of the Town of Estes Park are hereby authorized and directed to borrow an amount up to $225,000.00 for the purpose of meeting the Town’s obligations under Series C Bonds of the Municipal Subdistrict,Northern Colorado Water Conservancy District,and are hereby authorized and directed to execute the loan agreement,the indenture and such other documents, instruments or certificates as are deemed necessary or desirable by the Town to contract such indebtedness.Such documents are authorized to be executed,provided that such documents may be completed,corrected or revised as the Mayor of the Town shall approve in order to carry out the purposes for which the indebtedness is incurred,the Mayor’s execution thereof being deemed conclusive of his approval of such completion, correction or revision.Copies of all the documents shall be delivered,filed and recorded as provided herein. The approval and authorization hereby given to the various documents referred to above includes an approval and authorization of such additional details therein as may be necessary and appropriate for their completion,including interest rates and any numbers derived therefrom,and such modifications thereto,deletions therefrom and additions thereto as may be approved prior to the execution of the documents by the proper officers of the Town.The execution of any instrument herein authorized by the appropriate officers of the Town shall be conclusive evidence of the approval by the Town of such instrument in accordance with the terms hereof. 0 0 Section 2.Interest Rate.The maximum net eftective interest rate at which the authorized indebtedness may be incurred is 10% Section 3.Nature of Obligation.The indebtedness entered into on behalf of the Town shall be payable solely from,and secured by a pledge of,the certificates of deposit issued by the Colorado Savings &Loan in the principal amount ot $300,000.00 .The Town will not pledge any other of its property or secure the payment ot the loan with any other property. Section 4.Loan Ordinance Irrepealable.After the loan agreement is entered into,this ordinance shall constitute an irrevocable contract between the Town and the loaning institution and shall be and remain irrepealable until the loan,both principal and interest,shall be fully paid,cancelled and discharged. Section 5.The Board of Trustees of the Town of Estes Park, Colorado,herewith finds,determines and designates that this ordinance is necessary for their immediate preservation of the public peace,health and safety,in order to permit the payment of the Town’s obligations in supplying water,and whereas,in the opinion of the Board of Trustees,an emergency exists,this Ordinance shall take effect and be in force immediately after its passage,adoption and signature of the Mayor. f4ayor I hereby certify that the above ordinance was introduced and read at a regular meeting of the Board of Trustees on the _____day of __________________, 1986,and published in a newspaper of general circulation in the Town of Estes Park, Colorado. &c Town Clerk —2—