R-81-398 - 7/23/1981WHEREAS, by resolution the City Council (the "Governing Body ") of
the City of Round Rock, Texas (the "Unit "), authorized and approved the
creation of the Round Rock Industrial Development Corporation (the
"Corporation ") as a nonprofit industrial development corporation under
the provisions of the Development Corporation Act of 1979, Article
5190.6, Vernon's Annotated Texas Civil Statutes (the "Act "); and
WHEREAS, by resolution adopted on February 12, 1981, the Governing
Body approved an Agreement to Issue Bonds between the Corporation and
Weed Instrument Company, Inc., which Agreement to Issue Bonds authorized
the issuance of industrial development revenue bonds by the Corporation
to finance the cost of facilities to accomplish the specific public
purpose for which the Corporation was created and which Agreement to
Issue Bonds was approved by resolution of the Corporation on February 5,
1981; and
WHEREAS, in accordance with the terms of the Agreement to Issue
Bonds, the Corporation now desires to sell and provide for the issuance
and sale of its $1,850,000 Industrial Development Revenue Bonds, Series
1981 (Weed Instrument Company, Inc., Project) (the "Bonds "), by adopting
a resolution substantially in the form attached hereto as Exhibit "A"
(the "Resolution "); and
WHEREAS, the Act provides that the Governing Body must, by written
resolution adopted no more than sixty (60) days prior to the date of the
sale of the Bonds, specifically approve the resolution of the Corpora-
tion providing for the issuance of the Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ROUND ROCK, TEXAS, THAT:
The Resolution of the Corporation providing for the sale and issu-
ance of the Bonds, substantially in the form attached hereto as Exhibit
"A ", is hereby approved.
ATTEST:
RESOLUTION OF THE CITY COUNCIL APPROVING THE ISSUANCE OF BONDS
BY THE ROUND ROCK INDUSTRIAL DEVELOPMENT CORPORATION
TO FINANCE A PROJECT FOR WEED INSTRUMENT COMPANY, INC.
RESOLVED this 23rd day of July, 1981.
RESOLUTION NO. 9,:ek
or, C" 181 :f Round Rock, Texas
Exhibit "A"
RESOLUTION OF ROUND ROCK INDUSTRIAL DEVELOPMENT CORPORATION
AUTHORIZING ISSUANCE OF BONDS AND APPROVING DOCUMENTS
WHEREAS, the Development Corporation Act of 1979, Article 5190.6,
Vernon's Annotated Texas Civil Statutes (the "Act "), authorizes and
empowers the Round Rock Industrial Development Corporation (the "Corpo-
ration") to issue revenue bonds on behalf of the City of Round Rock,
Texas (the "Unit "), to finance the cost of projects comprising land,
buildings, equipment, facilities and improvements, found by the Board of
Directors of the Corporation (the "Board ") to be required or suitable
for the promotion of commercial or industrial development and expansion,
for the promotion of employment, or for use by commercial, manufacturing
or industrial enterprises; and
WHEREAS, the Board adopted a resolution on February 5, 1981,
pursuant to which a certain Agreement to Issue Bonds between the Corpo-
ration and Weed Instrument Company, Inc., a Texas corporation (the
"User "), was executed and delivered, whereby the Corporation agreed to
provide for the financing of the cost of the User's project (the "Pro-
ject") which was initially described in Exhibit "A" to said Agreement to
Issue Bonds and is more fully described in Exhibits A and B to the Loan
Agreement between the Corporation and the User referenced below, in
accordance with the provisions of the Act; and
WHEREAS, for purposes of financing the cost of the Project, the
Corporation now desires (i) to authorize the issuance of its Industrial
Development Revenue Bonds, Series 1981 (Weed Instrument Company, Inc.,
Project) (the "Bonds "), in the maximum aggregate principal amount of
$1,850,000, pursuant to the terms and provisions of a trust indenture,
(ii) to provide for the sale of the Bonds to the purchaser described
herein, (iii) to provide for the payment of the principal of and pre-
mium, if any, and interest on the Bonds with revenues derived from the
loan of proceeds of the sale of the Bonds (except for any amount repre-
senting accrued interest on the Bonds) to the User to finance the costs
of the Project pursuant to the terms and provisions of a loan agreement
and (iv) to take and authorize certain other actions in connection with
the foregoing; and
WHEREAS, on July 23, 1981, the governing body of the Unit will
adopt a written resolution specifically approving this resolution of the
Corporation providing for the issuance of the Bonds; and
WHEREAS, the Board has been presented with and has examined pro-
posed forms of a trust indenture, a loan agreement, a collateral assign-
ment and security agreement and a letter of representation, and the
Board finds that the form and substance of such documents are satisfac-
tory and the recitals and findings contained therein are true, correct
and complete and hereby adopts and incorporates by reference such reci-
tals and findings as if set forth in full in this resolution, and finds
that it is in the best interest of the public and the Corporation and
assists in carrying out the public purpose of the Corporation and of the
Act to authorize the execution and delivery of such documents; and
WHEREAS, the Board has been presented with and examined the pro-
posed form of a deed of trust, security agreement, assignment of rents
and financing statement from the User to Peterson Foster, as mortgage
trustee, for the benefit of the Corporation, and the Board finds the
form and substance of such document is satisfactory;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
ROUND ROCK INDUSTRIAL DEVELOPMENT CORPORATION THAT:
1. The Corporation hereby authorizes and directs the issuance of
the Bonds in the maximum aggregate principal amount of $1,850,000, in
accordance with a trust indenture substantially in the form of the Trust
Indenture, dated as of August 1, 1981 (the "Indenture "), by and between
the Corporation and The American National Bank of Austin, as trustee
(the "Trustee "), which was presented to the Board, the form, terms and
provisions of such Indenture and the Bonds being hereby authorized and
approved, and the President and the Vice President of the Corporation
are hereby severally authorized and directed to execute and deliver such
Indenture and the Bonds on behalf of the Corporation, and the Secretary
of the Corporation is hereby authorized to attest and affix the Corpora-
tion's seal thereto, with such changes therein as the officers executing
the same may approve, such approval to be conclusively evidenced by such
execution thereof.
2. The loan of the proceeds of the sale of the Bonds (except for
any amount representing accrued interest on the Bonds) by the Corpora-
tion to the User in order to provide financing of the costs of acquiring
and constructing the Project shall be effected pursuant to the terms and
provisions of a loan agreement substantially in the form of the Loan
Agreement, dated as of August 1, 1981 (the "Loan Agreement "), by and
between the Corporation and the User, which was presented to the Board,
the form, terms and provisions of such Loan Agreement being hereby
authorized and approved, and the President and the Vice President of the
Corporation are hereby severally authorized and directed to execute and
deliver such Loan Agreement on behalf of the Corporation, and the Secre-
tary of the Corporation is hereby authorized to attest and affix the
Corporation's seal thereto, with such changes therein as the officers
executing the same may approve, such approval to be conclusively evi-
denced by such execution thereof.
-2-
3. As a condition to the actions authorized in Paragraphs 1 and 2
of this resolution, the User shall have executed a deed of trust, secur-
ity agreement, assignment of rents and financing statement substantially
in the form of the Deed of Trust, Security Agreement, Assignment of
Rents and Financing Statement, dated as of August 1, 1981 (the "Mort-
gage"), from the User to Peterson Foster, as mortgage trustee, for the
benefit of the Corporation, which was presented to the Board, the form,
terms and provisions thereof being hereby authorized and approved.
4. The assignment of the Corporation's rights under the Mortgage
to the Trustee for the benefit of the holders of the Bonds shall be
- effected pursuant to the terms and provisions of a collateral assignment
and security agreement substantially in the form of the Collateral
Assignment and Security Agreement, dated as of August 1, 1981 (the
"Assignment "), from the Corporation to the Trustee, which was presented
to the Board, the form, terms and provisions of such Assignment being
hereby authorized and approved, and the President and the Vice President
of the Corporation are hereby severally authorized and directed to
execute and deliver such Assignment on behalf of the Corporation, and
the Secretary is hereby authorized to attest and affix the Corporation's
seal thereto, with such changes therein as the officers executing the
same may approve, such approval to be conclusively evidenced by such
execution thereof.
5. The sale and delivery of the Bonds by the Corporation to The
American National Bank of Austin (the "Purchaser "), at the par value
thereof plus accrued interest from the date of the Bonds until the date
of delivery and payment for the Bonds (the "Closing Date "), is hereby
authorized and approved.
6. The actions and obligations authorized in Paragraphs 1 through
5 of this resolution shall be subject to and conditioned upon the
receipt by the Corporation, at the Closing Date, of (i) a letter of
representation from the User, duly authorized and executed by the User,
substantially in the form of the Letter of Representation, dated the
Closing Date (the "Letter of Representation "), which was presented to
the Board, the form, terms and provisions of such Letter of Representa-
tion being hereby authorized and approved and the President and the Vice
President of the Corporation are hereby severally authorized to signify
the Corporation's acceptance and confirmation of such Letter of Repre-
sentation by executing the same on behalf of the Corporation in multiple
counterparts; (ii) an investment letter, duly authorized and executed by
said Purchaser, substantially in the form of the Investment Letter, dated
the Closing Date (the "Investment Letter "), which was presented to the
Board, the form, terms and provisions of such Investment Letter being
-3-
hereby authorized and approved; (iii) a certificate from a representa-
tive of the Texas Industrial Commission (the "Commission "), acting on
behalf of the Commission, evidencing final approval of the Loan Agree-
ment; (iv) the purchase price for the Bonds; and (v) such opinions,
evidences, certificates, instruments or other documents as shall be
requested by the Corporation's Counsel or by Bond Counsel, to evidence
due performance or satisfaction by the User at or prior to such time of
all agreements then to be performed and all conditions then to be satis-
fied by it.
7. The officers, employees and agents of the Corporation, and
each of them, shall be and each is expressly authorized, empowered and
directed from time to time and at any time to do and perform all acts
and things and to execute, acknowledge and deliver in the name and under
the corporate seal and on behalf of the Corporation all certificates,
financing statements, instruments and other papers, whether or not
herein mentioned, as they may determine to be necessary or desirable in
order to carry out the -terms and provisions of this resolution and of
the Bonds to be issued hereunder, as well as the terms and provisions of
the Indenture, the Mortgage, the Assignment, the Letter of Representa-
tion and the Loan Agreement hereby authorized and approved, such deter-
mination to be conclusively evidenced by the performance of such acts
and things and the execution of any such certificate, financing state-
ment, instrument or other paper.
8. The officers of the Corporation (with the assistance of the
User) shall prepare a final transcript of the proceedings relating to
the authorization, issuance, sale and delivery of the Bonds, which
transcript shall be submitted to the Commission within thirty (30) days
after the Closing Date.
9. The Corporation hereby elects to have Section 103(b)(6)(D) of
the Internal Revenue Code of 1954, as amended, and the regulations
promulgated thereunder, apply to the Bonds, and the President and the
Secretary of the Corporation are hereby severally authorized and direct-
ed to execute and deliver a statement to the Internal Revenue Service to
the effect that the Corporation has so elected, and to deliver a copy of
such statement to the Purchaser and the User.
10. This resolution shall take effect and be in full force and
effect upon and after its passage.
PASSED AND APPROVED this 23rd day of July, 1981.
-4-
GENERAL CERTIFICATE OF UNIT
I, the undersigned, City Secretary of the City of Round Rock, Texas
(the "Unit "), make this certification for the benefit of all persons
interested in the issuance by the Round Rock Industrial Development
Corporation (the "Corporation ") of its $1,850,000 Industrial Development
Revenue Bonds, Series 1981 (Weed Instrument Company, Inc., Project) (the
"Bonds "). I hereby certify that:
1. The Corporation was created and authorized to act on behalf of
the Unit, and the Articles of Incorporation and Bylaws of the Corpo-
ration were approved by the City Council (the "Governing Body ") of the
Unit.
2. On February 5, 1981, and at all times since that date, (i) the
following persons have been duly appointed by the Governing Body of the
Unit as members of the Board of Directors of the Corporation and (ii) as
indicated below, certain of the directors have been the duly appointed,
qualified and acting officers of the Corporation for the offices set
forth opposite their names:
Directors Officers
Document No. 5.2
Jim Boles President
Robert E. Rhoades Vice President
John Hood Secretary
James H. Mills
Jon Sloan
3. The Governing Body, by written resolution dated February 12,
1981, has approved the Agreement to Issue Bonds, dated February 5, 1981,
between the Corporation and Weed Instrument Company, Inc., and by
written resolution dated July 23, 1981, has specifically approved the
issuance of the Bonds and the documents relating thereto in the amount
and for the purpose set forth therein and such resolutions have not been
amended, annulled, rescinded or revoked and remain in full force and
effect on the date hereof.
4. The Unit has approved all programs and expenditures of the
Corporation in connection with the issuance of the Bonds and the trans-
actions contemplated thereby.
5. No litigation is pending against the Unit or, to the best of
my knowledge after reasonable investigation, threatened against the
Unit:
6. On February 5, 1981, and at all times since that date,
Larry L. Tonn has been the duly elected, qualified and acting Mayor of
the Unit and such person's signature appearing on the following certifi-
cate is true and genuine.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE UNIT this day of
August, 1981.
(SEAL)
(i) to restrain or enjoin the issuance or delivery of
the Bonds; or
(ii) in any way contesting (a) the right and power of the
Unit in connection with any action taken by it towards the
creation of the Corporation or the issuance of the Bonds or
(b) the titles of the current members of the City Council or
officers of the Unit to their respective offices.
•I JLI'
City Secretary
I, the Mayor of the City of Round Rock, Texas, hereby certify that
Joanne Land is the duly appointed, qualified d acting City Secretary
of the Unit and that such person's signature ,r.earin ve true and
genuine. ��
.k— ft-
Mayor
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
CERTIFICATE OF RESOLUTION
We, the undersigned officers of the City of Round Rock (the
"Unit "), do hereby execute and deliver this Certificate for the benefit
of all persons interested in proceedings of the City Council (the
"Governing Body ") of the Unit and the validity thereof, and do certify
as follows:
1. We are the duly chosen, qualified and acting officers of the
Unit for the offices shown below our signatures; as such we are familiar
with the facts herein certified; and we are duly authorized to execute
and deliver this Certificate.
2. The Governing Body convened in Regular Session on the 23rd day
of July, 1981, at the regular meeting place thereof, and the roll was
called of the duly constituted officers and members of the Governing
Body nd all of � ai � d �� p � e � r ,, sons were present, except the following:
A iz )
� v /w (57 , thus constituting a
quorum. Whereupon, among other business, the following was transacted
at said meeting: a written resolution was introduced for the considera-
tion of the Governing Body. It was then duly moved and seconded that
said Resolution be adopted; and, after due discussion, said motion,
carrying with it the adoption of said Resolution, prevailed and carried
by the vote of /p Ayes, c9 Noes, and 0 Abstention.
3. A true and complete copy of the aforesaid Resolution adopted
at the meeting is attached to and follows this Certificate.
4. Such Resolution has been duly and lawfully adopted by the
Governing Body and has been duly recorded in the minutes of the Govern-
ing Body for such meeting.
5. Written notice of the date, hour, place and subject of the
meeting of the Governing Body was posted on a bulletin board located at
a place convenient to the public in the City Hall of the Unit for at
least 72 hours preceding the scheduled time of such meeting; such place
of posting was readily accessible to the general public at all times
from such time of posting until the scheduled time of such meeting; and
such meeting was open to the public as required by law at all times
during which the Resolution and the subject matter thereof were dis-
cussed, considered and formally acted upon, all as required by the Open
Meetings Law, Article 6252-17, Vernon's Annotated Texas Civil Statutes,
as amended.
(SEAL)
SIGNED AND SEALED this 23rd day of Ju 1981.