R-91-1583 - 3/28/1991WHEREAS, the Round Rock Volunteer Fire Department provides
valuable back -up assistance to the City's paid fire department, and
WHEREAS, the City wishes to provide financial assistance to the
Volunteer Fire Department for the services the volunteers provide to
the City, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the City Council hereby authorizes the City to provide
financial support to the Round Rock Volunteer Fire Department in the
form of financing the purchase of a fire truck.
RESOLVED this 28th day of March, 1991.
ATTEST:
1
L /Ii Lei I.
JO
RS03281A
E LAND, City Secretary
RESOLUTION NO. /5g3
MIKE ROBINSON, Mayor
City of Round Rock, Texas
SECURITY AGREEMENT
Date: March 29, 1991
Debtor: Round Rock Volunteer Fire Department
Debtor's Mailing Address (including county): 203 Commerce, Round Rock,
Williamson County, Texas 78664
Secured Party: City of Round Rock, Texas
Secured Party's Mailing Address (including county): 221 East Main
Street, Round Rock, Williamson County, Texas 78664
Classification of Collateral: Equipment
Collateral (including all accessions): 1984 GMC Fire Truck VIN
1GDL7DIE3EV530544
Obligation
Note
Date: March 29, 1991
Amount: Twenty -Three Thousand Six Hundred Ninety -Nine and
49/100 Dollars ($23,699.49)
Maker: Round Rock Volunteer Fire Department
Payee: City of Round Rock, Texas
Final Maturity Date: April 15, 1993
Other Obligation: None
Debtor's Representation Concerning Location of Collateral (optional):
203 Commerce, Round Rock, Williamson County, Texas 78664
Subject to the terms of this agreement, Debtor grants to Secured
Party a security interest in the collateral and all its proceeds to
secure payment and performance of Debtor's obligation in this security
agreement and all renewals and extensions of any of the obligation.
Debtor's Warranties
1. Financing Statement. Except for that in favor of Secured
Party, no financing statement covering the collateral is filed in any
public office.
2. Ownership. Debtor owns the collateral and has the authority
to grant this security interest. Ownership is free from any setoff,
claim, restriction, lien, security interest, or encumbrance except this
security interest and liens for taxes not yet due.
3. Fixtures and Accessions. None of the collateral is affixed to
real estate, is an accession to any goods, is commingled with other
goods, or will become a fixture, accession, or part of a product or mass
with other goods except as expressly provided in this agreement.
4. Financial Statements. All information about Debtor's
financial condition provided to Secured Party was accurate when
submitted, as will be any information subsequently provided.
Debtor's Covenants
1. Protection of Collateral. Debtor will defend the collateral
against all claims and demands adverse to Secured Party's interest in it
and will keep it free from all liens except those for taxes not yet due
and from all security interests except this one. The collateral will
TCRRVFD.SA
remain in Debtor's possession or control at all times, except as
otherwise provided in this agreement. Debtor will maintain the
collateral in good condition and protect it against misuse, abuse,
waste, and deterioration except for ordinary wear and tear resulting
from its intended use.
2. Insurance. Debtor will insure the collateral in accord with
Secured Party's reasonable requirements regarding choice of carrier,
casualties insured against, and amount of coverage. Policies will be
written in favor of Debtor and Secured Party according to their
respective interests or according to Secured Party's other requirements.
All policies will provide that Secured Party will receive at least ten
days' notice before cancellation, and the policies or certificates
evidencing them will be provided to Secured Party when issued. Debtor
assumes all risk of loss and damage to the collateral to the extent of
any deficiency in insurance coverage. Debtor irrevocably appoints
Secured Party as attorney -in -fact to collect any return, unearned
premiums, and proceeds of any insurance on the collateral and to endorse
any draft or check deriving from the policies and made payable to
Debtor.
3. Secured Party's Costs. Debtor will pay all expenses incurred
by Secured Party in obtaining, preserving, perfecting, defending, and
enforcing this security interest or the collateral and in collecting or
enforcing the note. Expenses for which Debtor is liable include, but
are not limited to, taxes, assessments, reasonable attorney's fees, and
other legal expenses. These expenses will bear interest from the dates
of payments at the highest rates stated in notes that are part of the
obligation, and Debtor will pay Secured Party this interest on demand at
a time and place reasonably specified by Secured Party. These expenses
and interest will be part of the obligation and will be recoverable as
such in all respects.
4. Additional Documents. Debtor will sign any papers that
Secured Party considers necessary to obtain, maintain, and perfect this
security interest or to comply with any relevant law.
5. Notice of Changes. Debtor will immediately notify Secured
Party of any material change in the collateral; change in Debtor's name,
address, or location; change in any matter warranted or represented in
this agreement; change that may affect this security interest; and any
event of default.
6. Use and Removal of Collateral. Debtor will use the collateral
primarily according to the stated classification unless Secured Party
consents otherwise in writing. Debtor will not permit the collateral to
be affixed to any real estate, to become an accession to any goods, to
be commingled with other goods, or to become a fixture, accession, or
part of a product or mass with other goods except as expressly provided
in this agreement.
7. Sale. Debtor will not sell, transfer, or encumber any of the
collateral without the prior written consent of Secured Party.
Rights and Remedies of Secured Party
1. Generally, Secured Party may exercise the following rights and
remedies either before or after default:
a. take control of any proceeds of the collateral;
b. release any collateral in Secured Party's possession to
any debtor, temporarily or otherwise;
c. take control of any funds generated by the collateral,
such as refunds from and proceeds of insurance, and
reduce any part of the obligation accordingly or permit
Debtor to use such funds to repair or replace damaged or
destroyed collateral covered by insurance; and
2 .
d. demand, collect, convert, redeem, settle, compromise,
receipt for, realize on, adjust, sue for, and foreclose
on the collateral either in Secured Party's or Debtor's
name, as Secured Party desires.
2. Insurance. If Debtor fails to maintain insurance as required
by this agreement or otherwise by Secured Party, then Secured Party may
purchase single-interest insurance coverage that will protect only
Secured Party. If Secured Party purchases this insurance, its premiums
will become part of the obligation.
Events of Default
Each of the following conditions is an event of default:
1. if Debtor defaults in timely payment or performance of any
obligation, covenant, or liability in any written agreement between
Debtor and Secured Party or in any other transaction secured by this
agreement;
2. if any warranty, covenant, or representation made to Secured
Party by or on behalf of Debtor proves to have been false in any
material respect when made;
3. if a receiver is appointed for Debtor or any of the
collateral;
4. if the collateral is assigned for the benefit of creditors or,
to the extent permitted by law, if bankruptcy or insolvency proceedings
commence against or by any of these parties: Debtor; any partnership of
which Debtor is a general partner; and any maker, drawer, acceptor,
endorser, guarantor, surety, accommodation party, or other person liable
on or for any part of the obligation;
5. if any financing statement regarding the collateral but not
related to this security interest and not favoring Secured Party is
filed;
6. if any lien attaches to any of the collateral;
7. if any of the collateral is lost, stolen, damaged, or
destroyed, unless it is promptly replaced with collateral of like
quality or restored to its former condition.
Remedies of Secured Party on Default
During the existence of any event of default, Secured Party may
declare the unpaid principal and earned interest of the obligation
immediately due in whole or part, enforce the obligation, and exercise
any rights and remedies granted by the Texas Uniform Commercial Code or
by this agreement, including the following:
1. require Debtor to deliver to Secured Party all books and
records relating to the collateral;
2. require Debtor to assemble the collateral and make it
available to Secured Party at a place reasonably convenient to both
parties;
3. take possession of any of the collateral and for this purpose
enter any premises where it is located if this can be done without
breach of the peace;
4. sell, lease, or otherwise dispose of any of the collateral in
accord with the rights, remedies, and duties of a secured party under
chapters 2 and 9 of the Texas Uniform Commercial Code after giving
notice as required by those chapters; unless the collateral threatens to
decline speedily in value, is perishable, or would typically be sold on
.3.
a recognized market, Secured Party will give Debtor reasonable notice of
any public sale of the collateral or of a time after which it may be
otherwise disposed of without further notice to Debtor; in this event,
notice will be deemed reasonable if it is mailed, postage prepaid, to
Debtor at the address specified in this agreement at least ten days
before any public sale or ten days before the time when the collateral
may be otherwise disposed of without further notice to Debtor.
5. surrender any insurance policies covering the collateral and
receive the unearned premium;
6. apply any proceeds from disposition of the collateral after
default in the manner specified in chapter 9, of the Texas Uniform
Commercial Code, including payment of, Secured Party's, reasonable
attorney's fees and court expenses; and
7. if disposition of the collateral leaves the ;obligation
unsatisfied, collect the deficiency from Debtor.
General Provisions
1. Parties Bound. Secured Party's rights under this agreement
shall inure to the benefit of its successors and assigns. Assignment of
any part of the obligation and delivery by Secured Party of any part of
the collateral will fully discharge Secured Party from responsibility
for that part of the collateral. If Debtor is more than one, all their
representations, warranties, and agreements are joint and several.
Debtor's obligations under this agreement shall bind Debtor's personal
representatives, successors, and assigns.
2. Waiver. Neither delay in exercise nor partial exercise of any
of Secured Party's remedies or rights shall waive further exercise of
those remedies or rights. Secured Party's failure to exercise remedies
or rights does not waive subsequent exercise of those remedies or
rights. Secured Party's waiver of any default does not waive further
default. Secured Party's waiver of any right in this agreement or of
any default is binding only if it is in writing. Secured Party may
remedy any default without waiving it.
3. Reimbursement. If Debtor fails to perform any of Debtor's
obligations, Secured Party may perform those obligations and be
reimbursed by Debtor on demand at the place where the note is payable
for any sums so paid, including attorney's fees and other legal
expenses, plus interest on those sums from the dates of payment at the
rate stated in the note for matured, unpaid amounts. The sum to be
reimbursed shall be secured by this security agreement.
4. Interest Rate. Interest included in the obligation shall not
exceed the maximum amount of nonusurious interest that may be contracted
for, taken, reserved, charged, or received under law; any interest in
excess of that maximum amount shall be credited to the principal of the
obligation or, if that has been paid, refunded. On any acceleration or
required or permitted prepayment of the obligation, any such excess
shall be canceled automatically as of the acceleration or prepayment or,
if already paid, credited on the principal amount of the obligation or,
if the principal amount has been paid, refunded. This provision
overrides other provisions in this and all other instruments concerning
the obligation.
5. Modifications. No provisions of this agreement shall be
modified or limited except by written agreement.
6. Severability. The unenforceability of any provision of this
agreement will not affect the enforceability or validity of any other
provision.
7. After - Acquired Consumer Goods. This security interest shall
attach to after - acquired consumer goods only to the extent permitted by
law.
4 .
8. Applicable Law. This agreement will be construed according to
Texas laws.
9. Place of Performance. This agreement is to be performed in
the county of Secured Party's mailing address.
10. Financing Statement. A carbon, photographic, or other
reproduction of this agreement or any financing statement covering the
collateral is sufficient as a financing statement.
11. Presumption of Truth and Validity. If the collateral is sold
after default, recitals in the bill of sale or transfer will be prima
facie evidence of their truth, and all prerequisites to the sale
specified by this agreement and by the Texas Uniform Commercial Code
will be presumed satisfied.
12. Singular and Plural. When the context requires, singular
nouns and pronouns include the plural.
13. Priority of Security Interest. This security interest shall
neither affect nor be affected by any other security for any of the
obligation. Neither extensions of any of the obligation nor releases of
any of the collateral will affect the priority or validity of this
security interest with reference to any third person.
14. Cumulative Remedies. Foreclosure of this security interest by
suit does not limit Secured Party's remedies, including the right to
sell the collateral under the terms of this agreement. All remedies of
Secured Party may be exercised at the same or different times, and no
remedy shall be a defense to any other. Secured Party's rights and
remedies include all those granted by law or otherwise, in addition to
those specified in this agreement.
15. Agency. Debtor's appointment of Secured Party as Debtor's
agent is coupled with an interest and will survive any disability of
Debtor. -
The obligation represents payment,of the' purchase'price of the
collateral, and this security interest'is a purchase -money security
interest.
CITY OF ROUND ROCK, TEXAS
By: v �
ROUND ROCK VOL. TEER FIRE DEPT.
Mike Robinson, Mayor
5.
By
Mickey
P••hin, Chief
DATE: March 260991
SUBJECT: City Council Meeting, March 28, 1991
ITEM: 9.A Consider a resolution authorizing the refinancing
of the Round Rock Volunteer Fire Department
fire truck.
STAFF
RESOURCE PERSON: David Kautz
STAFF
RECOMMENDATION:
The Round Rock Volunteer Fire Department purchased a small fire truck from
FMC Corporation in 1984 and financed it with a 10 -year note at 8%. The
amount remaining on the note is $23, 848.48
The City has the opportunity to finance the ruining portion of the note
as illustrated below. The Volunteers would benefit from such an arrange-
ment and the accelerated repayment schedule would minimize the interest
cost to the City.
SUGGESTED RE- PAYMENT SCHEDULE
Payment Note Balance
3/91 -0- $23,848.48
4/91 7,900.00 15,948.48
4/92 7,900.00 8,048.48
4/93 8.048.48 -0-