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MAHARISHI VEDIC CITY
CITY COUNCIL
Resolution No. 15
Authorizing a Loan Agreement and a $45,000 General Obligation General Fund Note and providing for the levy of taxes to pay the same
March 9, 2002
WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City of Vedic City, Iowa (the “City”), has heretofore proposed to contract indebtedness and enter into a loan agreement (the “Loan Agreement”) in the principal amount of $45,000 to provide funds to pay the cost, to that extent, of providing initial operating funds for the current and next fiscal year, and has given notice of the proposed action and has held a hearing thereon; and
WHEREAS, it is necessary at this time to authorize the Loan Agreement and a General Obligation General Fund Note in the principal amount of $45,000 (the “Note”) in evidence of the obligation of the City under the Loan Agreement;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Vedic City, Iowa, as follows:
Section 1. The City shall enter into the Loan Agreement with a lender (the “Lender”) to be selected in the future, providing for a loan to the City in the principal amount of $45,000, for the purpose or purposes set forth in the preamble hereof.
Section 2. The Note shall be issued in the principal amount of $45,000 in evidence of the City’s obligation under the Loan Agreement after a Lender is selected.
The Note shall be dated as of the date of its delivery to the Lender, shall bear interest, shall be payable as to principal and interest on the dates and in the amounts, shall be subject to prepayment prior to maturity and may contain such other terms and provisions as shall be determined by the Council at the time the Lender is selected, and this resolution shall then be amended to so provide.
Section 3. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Note as the same become due, there is hereby ordered levied on all the taxable property in the City in each of the years while the Note is outstanding, a tax sufficient for that purpose, and in furtherance of this provision, but not in limitation thereof, there is hereby levied on all the taxable property in the City the following direct annual tax for collection in each of the following fiscal years, to-wit:
For collection in the fiscal year beginning July 1, 2002,
sufficient to produce the net annual sum of $46,250.
Section 4. A certified copy of this resolution shall be filed with the County Auditor of Jefferson County, and said Auditor shall be and is hereby instructed to enter for collection and assess the tax hereby authorized. When annually entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the City and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the City and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Note hereby authorized and for no other purpose whatsoever.
Section 5. All resolutions or parts thereof in conflict herewith be and the same are hereby repealed to the extent of such conflict.
Passed and approved on March 9, 2002.
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