HomeMy WebLinkAboutR2003-001RESOLUTION NO.
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; AND MAK1NG CERTAIN FINDINGS IN CONNECTION
THEREWITH
WHEREAS, the 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 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 53.47 of the Texas Education Code, as amended,
for and on their behalf; and
WHEREAS, pursuant to such request, the Authority has proceeded in the development of
a plan of finance and 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, pursuant to Section 147(0 of the Internal Revenue Code of 1986, as
amended, a public hearing was conducted, following reasonable public notice, with respect to the
issuance of those student loan revenue bonds of the Authority which are tax-exempt; and
WHEREAS, the Authority requests that the City approve the Authority's issuance of
bonds, to be issued in one or more series, as needed, to augment the Authority's student loan
program;
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 CITY COUNC1L 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 student loan
revenue bonds or other obligations, in one or more series in an amount not to exceed
300,000,000, 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; and setting aside/he 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 53, Texas Education Code.
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SECTION 2. The City of Denton, Texas requests that the Authority exercise the powers
enumerated and provided for in Section 53.47, 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 53.47(e), 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 the 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.
approval.
PASSED AND APPROVED this the~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO FORM:
HERBallY
ATTORNEY
This resolution shall become effective immediately upon its passage and
day of( ~~ 2003.
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