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HomeMy WebLinkAboutR2002-007RESOLUTION NO. ~6~ - ~fP7 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF TAXABLE BONDS AND NOTES BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND NOTES AND THE USE OF THE PROCEEDS OF SUCH BONDS AND NOTES; MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE 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 issued tax exempt 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 WHEREAS, due to the scarcity of tax-exempt funds and restrictions on their use, the Authority must issue taxable bonds and notes to fund the purchase of student loans; and WHEREAS, the Authority requests that the City approve the Authority's issuance of taxable bonds and notes, to be. issued in one or more series, as needed, to augment the Authority's tax-exempt funds; WHEREAS, the City wishes to approve the issuance of taxable bonds and notes provided that City is not responsible in any way for such bonds and notes; NOW, THEREFORE, THE CITY 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 taxable student loan revenue bonds and notes or other taxable obligations, in one or more series in an aggregate principal amount not to exceed the limit approved for the North Texas Higher Education Authority, Inc., 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 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 53, Texas Education Code. 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: This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _~:fl''~ dayof. _~~ ,2002 EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO FORM: HERBERT L. PROUTY, CITY ATTORNEY