1991-14 Authorizing the Execution of Amendments to the Reimbursement Agreement and Letter of Credit Related to the Borough's General Obligation Variable Rate Demand Bonds, 1986 Series A and Providing for Related Matters.Introduced by:
Drafted by:
Introduced:
Adopted:
KODIAK ISLAND BOROUGH
RESOLUTION NO. 91-14
Mayor Selby
Bond Counsel
04/18/91
04/18/91
A RESOLUTION AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT OF
REIMBURSEMENT AGREEMENT AND EXTENSION OF LETTER OF CREDIT
RELATED TO THE BOROUGH'S GENERAL OBLIGATION VARIABLE RATE DEMAND
BONDS, 1986 SERIES A; AND PROVIDING FOR RELATED MATTERS
WHEREAS, the Kodiak Island Borough , Alaska (the "Borough") has issued and sold
$9,930,000 aggregate principal amount of its General Obligation Variable
Rate Demand Bonds, 1986 Series A, dated June 4, 1986 (the "Bonds"); and
WHEREAS, to secure the payment of principal of, premium, if any, and interest on the
Bonds according to their tenor, Barclays Banks PLC (the "Bank") issued an
irrevocable direct pay letter of credit, dated June 4, 1986 (the "Letter of
Credit"); and
WHEREAS, to secure the rights of the Bank to reimbursement of amounts paid by the
Bank as a result of a draw or draws on the Letter of Credit for the payment
of principal, premium, if any, and interest on the Bonds the Borough entered
into a Reimbursement Agreement dated as of May 1, 1986 (the
"Reimbursement Agreement") with the Banks; and
WHEREAS, pursuant to the Letter of Credit and the Reimbursement Agreement, the
Letter of Credit shall expire on June 11, 1991, unless the Borough and the
Bank agree in writing to an extension of the Letter of Credit to another
specified date; and
WHEREAS, it is in the best interest of the Borough to extend the term of the Letter of
Credit to provide security for the payment of the Bonds, and the First
Amendment to the Reimbursement Agreement approved herein is
necessary and appropriate to provide for such an extension; and
WHEREAS, there have been presented to the Borough the form of the First Amendment
of Reimbursement Agreement and Extension of Letter Credit (the
"Amendment") which the Borough proposes to enter into to extend the term
of Letter of Credit; and
Kodiak Island Borough, Alaska Resolution No. 91-14
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WHEREAS, it appears that the Amendment above referred to, which is now before the
Borough, is in appropriate form and is an appropriate instrument for the
purposes intended;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH:
Section 1. The purpose of this Resolution is to authorize the execution of the
Amendment for the purpose of extending the term of the Letter of Credit
until June 11, 1992.
Section 2. The form and content of the Amendment hereby is in all respects
authorized, approved and confirmed, and the Borough Mayor and his
designee each hereby is authorized, empowered and directed to execute
and deliver said document to the counterparty for and on behalf of the
Borough in substantially the form and content now before this meeting but
with such changes, modifications, additions and deletions therein as shall
to them seem necessary, desirable or appropriate, the execution thereof to
constitute conclusive evidence of the approval of any and all changes,
modifications, additions or deletions therein from the form and content of
the said document now before this meeting, and from and after the
execution and delivery of said document the Borough Mayor and his
designee are hereby authorized, empowered and directed to do all such
acts and things and to execute all documents as may be necessary to carry
out and comply with the provisions of the document as executed.
Section 3. The Borough Mayor and his designee or any other person authorized by the
Borough each hereby is authorized to execute and deliver for and on behalf
of the Borough any and all additional certificates, documents, opinions or
other papers and perform all other acts as they may deem necessary or
appropriate in order to implement and carry out the intent and purposes of
this Resolution.
Section 4. The provisions of this Resolution are hereby declared to be separable and
if any section, phrase or provision hereof shall for any reason be declared
to be invalid such declaration shall not affect the validity of the remainder
of the sections, phrases or provisions hereof.
Section 5. This Resolution shall become effective upon passage and approval.
Kodiak Island Borough, Alaska Resolution No. 91-14
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PASSED AND APPROVED THIS 18th DAY OF APRIL, 1991.
KODIAK ISLAND BOROUGH
Borq gh Mayor
ATTEST:
Boro Clerk
Kodiak Island Borough, Alaska Resolution No. 91-14
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