HomeMy WebLinkAboutR2012-017RESOLUTION NO. R2� 12-017
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO
THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY,
INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE
PROCEEDS OF SUCH BONDS; RECOGNIZING THAT THE CITY HAS NO FINANCIAL
OBLIGATION TO PAY ANY PRINCIPAL OR INTEREST ON THE BONDS; MAKING
CERTAIN F1NDINGS IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTNE DATE.
WHEREAS, North Texas Higher Education Authority, Inc. (the "Authority") was
established as a non-profit corporation pursuant to the Texas Non-Profit Corporation Act, for the
purpose of furthering educational opportunities of students by providing funds to purchase or to
make guaranteed student loans; and
WHEREAS, the City of Denton and the City of Arlington have requested the Authority
to exercise the powers provided for in Section 53B.47 of the Texas Education Code, as amended;
and
WHEREAS, pursuant to such request, the Authority has issued student loan revenue
bonds or otherwise borrowed money to obtain funds to purchase or make student loans; and
WHEREAS, the Authority has advised the City that it plans to refund certain of its
student loan revenue bonds at the expiration of the letters of credit which secure such bonds; and
WHEREAS, the Authority requests that the City now approve the issuance of bonds to
refund outstanding bonds of the Authority and to provide financing to purchase student loans;
and
WHEREAS, the City wishes to approve the issuance of the Authority's bonds provided
that City is not responsible in any way for such bonds, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The City Council of the City of Denton, Texas, hereby grants its approval
to the North Texas Higher Education Authority, Inc. to issue and deliver student loan revenue
bonds, in one or more issues and one or more series, in an amount not to exceed $600,000,000 in
2012 and 2013. The bonds are to be issued to refund outstanding bonds of the Authority and/or
to provide funds, to the extent deemed feasible, to purchase student loans, to set aside the
amount, if any, the Authority determines is necessary for payment of interest on the bonds and
for operating costs and a debt service reserve, and to pay the cost of issuing the bonds, in
accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code.
SECTION 2. The City of Denton, Texas requests that the Authority exercise the powers
enumerated and provided for in Section 53B.47, Texas Education Code, as amended, and that
such non-profit corporation shall, in this connection, exercise such powers for and on behalf of
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the City of Denton, Texas and the State of Texas, as contemplated by Section 53B.47(e), (� and
(g), Texas Education Code, as amended.
SECTION 3. The City of Denton, Texas does not agree to assume any responsibility in
connection with the administration of the Authority's student loan program. Sole responsibility
for the administration of the Authority's student loan program is assumed by the Authority.
SECTION 4. Further, it is recognized by the City of Denton, Texas that the instruments
which authorize the issuance of bonds, notes, or obligations by the Authority will specifically
state that the City of Denton, Texas is not obligated to pay the principal of or interest on the
bonds, notes, or obligations proposed to be issued by the Authority. Nothing in this resolution
shall be construed as an indication by the City of Denton, Texas that it will pay or provide for the
payment of any obligations of said Authority whether theretofore or hereafter incurred; and in
this connection, attention is called to the Constitution of the State of Texas, wherein it is
provided that a city may incur no indebtedness without having made provisions for its payment,
and the City Council of the City of Denton, Texas hereby specifically refuses to set aside any
present or future funds, assets or money for the payment of any indebtedness or obligation of the
Authority.
SECTION 5. It is hereby officially found and determined that the meeting at which this
resolution is passed is open to the public, as required by law, and that public notice of the time,
place and purpose of said meeting was posted, as required by law.
SECTION 6. This resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPR ED A O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
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