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RESOLUTION NO. 2 p - O7
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; MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the North Texas Higher Education Authority, Inc. (the "Authority") was
established as anon-profit corporation pursuant to the Texas Non-Profit Corporation Act, for the
purpose of furthering educational opportunities of students by providing funds for the acquisition
of 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 student loans which are
guaranteed under the provisions of the Higher Education Act of 1965, as amended, and
additional funds are now needed to continue the program; and
WHEREAS, the Authority requests that the City approve the issuance of additional bonds
to augment the Authority's student loan program; and
WHEREAS, the Authority must restructure its current financings due to the ratings
downgrade of the bond insurer insuring certain of its bonds; and
WHEREAS, the Authority requests that the City approve the issuance of bonds to refund
the Authority's insured student loan revenue bonds; 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. That 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 during 2008
taxable student loan revenue bonds or other obligations, in one or more series, in an amount not
to exceed $95,000,000. The bonds or other obligations are to be issued for the purposes of
refunding outstanding obligations of the Authority, obtaining funds to purchase student or parent
loan notes which are guaranteed under the Higher Education Act of 1965, as amended, setting
aside the amount the Authority determines is necessary for a reserve and for operating costs, and
paying the cost of issuing such obligations in accordance with the laws of the State of Texas,
including Chapter 53B, Texas Education Code.
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SECTION 2. That, in addition to the student loan revenue bonds approved in 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 during 2008 additional student loan
revenue bonds or other obligations, in one or more series, in an amount not to exceed
60,000,000, to consist of student loan revenue bonds utilizing a 2008 Private Activity Bond
Allocation. The bonds or other obligations are to be issued for the purposes of obtaining funds to
purchase student or parent loan notes which are guaranteed under the Higher Education Act of
1965, as amended, refunding outstanding obligations of the Authority, setting aside the amount
the Authority determines is necessary for a reserve and for operating costs, and paying the cost
of issuing such obligations in accordance with the laws of the State of Texas, including
Chapter 53B, Texas Education Code.
SECTION 3. That, in addition to the student loan revenue bonds approved in Sections 1
and 2, the City Council of the City of Denton, Texas, hereby grants its approval to the North
Texas Higher Education Authority, Tnc. to issue and deliver during 2008 additional student loan
revenue bonds or other obligations, in one or more series, in an amount not to exceed
660,000,000 in order to refund its insured student loan revenue bonds. The bonds or other
obligations are to be issued for the purposes of refunding outstanding obligations of the
Authority, setting aside the amount the Authority determines is necessary for a reserve and for
operating costs, and paying the cost of issuing such obligations, to the extent permitted by the
pertinent financing documents and the laws of the State of Texas, including Chapter 53B, Texas
Education Code.
SECTION 4. That the City Council of the City of Denton, Texas, hereby grants its
approval to the application of North Texas Higher Education Authority, Inc. fora 2008 Private
Activity Bond Allocation Carry forward in an amount not to exceed $200,000,000, and hereby
authorizes the Mayor to execute such application.
SECTION 5. 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
the City of Denton, Texas and the State of Texas, as contemplated by Section 53B.47(e), (f) and
g), Texas Education Code, as amended. ,
SECTION 6. 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 7. 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
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present or future funds, assets or money for the payment of any indebtedness or obligation of the
Authority.
SECTION 8. 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 9. This resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ day of / , 2008.
V ~ /~%~
PERK . McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APP VEDA O LEGAL FORM:
EDWIN M. SNYD ITY ATTORNEY
BY:
50049959.1
CERTIFICATE OF SECRETARY
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
following:
I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the
1. On the 4th day of March , 2008, the City Council of
the City of Denton, Texas convened in regular session at its regulaz meeting place in Ci Hall,
with the duly constituted members of the City Council being as follows:
Perry McNeil]Mayor
Chazlye Heggins Council Member, District 1
Pete Kamp Council Member, District 2 and Mayor Pro Tem
Jack Thomson Council Member, District 3
Chris Watts Council Member, District 4
Bob Montgomery Council Member, At Lazge Place 5
Joe Mulroy Council Member, At Lazge Place 6 and Deputy
Mayor Pro Tem
and all Counci] Members were present at said meeting, excepbthe following:
Charlye Heggins
Among other business considered at said meeting, the attached resolution, entitled:
A RESOLUTION BY THE CITY COUNCIL OF THE
CITY OF DENTON RELATING TO THE
ISSUANCE OF BONDS BY THE
NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.;
APPROVING THE ISSUANCE OF SUCH BONDS AND
THE USE OF THE PROCEEDS OF SUCH BONDS; AND
MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH
was introduced and submitted to the Council for approval and passage. After presentation and
due consideration of the resolution, and upon a motion by Pete Kamp
seconded by Joe Mulroy ,the resolution was duly passed and adopted by the
City Council, to be effective immediately, by the following vote:
b voted "For" 0 voted "Against"0 abstained
all as stated in the official Minutes of the City Council for the meeting held on the aforesaid date.
50049959.1
2. The attached resolution is a true and correct copy of the original resolution
on file in the official records of the City of Denton, Texas. The duly qualified and actingmembersoftheCityCounci] of the City of Denton, Texas, on the date of the aforesaid Council
meeting are those persons above named; and according to the records of my office, each member
of the City Council was given advance notice of the time, place and purpose of the meeting, and
that said meeting and deliberation of the aforesaid public business was open to the public, and
written notice of said meeting, including the subject of the entitled resolution, was posted and
given in advance thereof, in compliance with the provisions of Chapter 551, Texas Government
Code.
IN WITNESS THEREOF, I have hereunto signed my name officially and affixed
the seal of said City, this the 12th day of March , 2008.
Jennifer Walters, City Secretary
City of Denton, Texas
Seal)
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