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Home My WebLink AboutR2008-025s:\our documentstresolu[ions\08\nthea res 2008 additional bonds.doc RESOLUTION NO. (, - A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF ADDITIONAL BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH ADDITIONAL BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND 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, puisuant 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; WHEREAS, upon request of the Authority, the City Council of the City of Denton, Texas approved the issuance of certain student loan revenue bonds by the Authority on Mazch 4, 2008 by Resolution No. 82008-007; and WHEREAS, the Authority has notified the City that it has been unable to issue such bonds but intends to do so; and WHEREAS, the Authority has now requested that the City Council of the City of Denton, Texas approve the issuance of student loan revenue bonds in addition to those approved by Resolution No. 82008-007 in order to allow the Authority to restructure its debt and take advantage of private activity bond allocations; 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, in addition to the student loan revenue bonds approved by Resolution 82008-007, 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 5,000,000. The bonds or other obligations aze to be issued for the purposes of refunding outstanding obligations of the Authority, obtaining funds to purchase student or parent loan notes which aze 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 500821321 1 s:\our documen[s\resolutions\OS\nthea res 2008 additional bonds.doc the cost of issuing such obligations ih accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 2. That, in addition to the student loan revenue bonds approved by Resolution R2008-007 and 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 additional student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $100,000,000, to consist of student loan revenue bonds utilizing a 2008 Private Activity Bond Allocation. The bonds or other obligations aze to be issued for the purposes of obtaining funds to purchase student or parent loan notes which aze guazanteed under the Higher Education Act of 1965, as amended, refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessazy 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 Resolution R2008-007 and Sections 1 and 2, 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 $85,000,000. The bonds or other obligations aze to be issued for the purposes of refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessazy 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. 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 5. 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 6. 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. sooszlsz.l 2 s:\our documentsUesolutions\OS\nthea res 2008 additional bonds.doc SECTION 7. 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 bylaw. SECTION 8. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of , 2008. PERK . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: W ~~~ APP OVED A TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: 50082132.1 s:\our documen[s\resolutions\08\n[hea res 2008 additional bonds.doc CERTIFICATE OF SECRETARY THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the following: 1. On the ~ day of _, 2008, the City Council of the City of Denton, Texas convened in regulaz seson~laz meeting place in Citv Hall, with the duly constituted members of the City Council being as follows: Perry McNeill Mayor Charlye Heggins Council Member, District 1 Rudy Moreno Council Member, District 2 Jack Thomson Council Member, District 3 Chris Watts Council Member, District 4 Pete Kamp Council Member, At Lazge Place 5 and Mayor Pro Tem Joe Mulroy Council Member, At Large Place 6 and Deputy Mayor Pro Tem and all Councii Members were present at said meeting, except the following: 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 ADDITIONAL BONDS BY THE NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH ADDITIONAL 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 ~[,(Y»t~Q-j7 J , seconded by ~~, the resolution was duly passed and adopted by the City Council, to be of ve immediately, by the following vote: voted "For" (~ voted "Against" /!//t abstained all as stated in the official Minutes ofthe City Council for the meeting held on the aforesaid date. 50082132.1 s:\our documentstresolutions\08\n[hea res 2008 additional bonds.doc 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 acting members of the City Council 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 ~/7~h day of , 2008. Je 'fer Walters, City Secretary City of Denton, Texas Seal) soos2lsz.i 2