[Adopted 6-18-1990 by Ord. No. 4-1990[1]]
[1]
Editor's Note: The introductory paragraphs to this ordinance
defined "Act" as "Pennsylvania Act No. 1972-185, as reenacted, amended
and revised by Pennsylvania Act No. 1978-52, known as the 'Local
Government Unit Debt Act,' as amended and supplemented from time
to time." [See now the Local Government Unit Debt Act, Part VII of
Act 177 of 1996, as amended (53 Pa.C.S.A. § 8001 et seq.).]
It also defined "Authority" as the "Scott Township Authority" and
"project" as "a project that consists of, inter alia, planning, designing,
acquiring and constructing sanitary sewage collection and transmission
system facilities, including all related and necessary facilities
required for rendering sewage service in and for certain portions
of this Township."
This Township authorizes and requests the Authority to undertake
and to complete the acquisition and construction of the project.
This Township determines that the Authority shall incur debt,
which shall be lease rental debt of this Township pursuant to the
Act, to acquire and construct the project.
Such debt will constitute lease rental debt of this Township
pursuant to the Act; shall be in the aggregate principal amount of
$4,800,000; shall be evidenced by certain obligations to be issued
by the Authority under the Municipal Authorities Act and shall consist
of a series of guaranteed sewer project notes, to be designated as
"Guaranteed Sewer Project Notes, Series of 1990," dated as of July
1, 1990, (the "notes"), which notes shall have the benefit of and
shall be secured by the guaranty obligations of this Township pursuant
to the guaranty agreement (hereinafter mentioned and identified).
This Township specifies that the realistic useful life of the
project is at least 30 years.
A.
This Township, as guarantor, shall enter into a guaranty agreement, dated as of July 1, 1990, (the "guaranty agreement") substantially in the form referred to in § 112-17, with the Authority and First Eastern Bank, N.A. (the paying agent), Wilkes-Barre, Pennsylvania, appointed as paying agent under a resolution dated for convenience as of July 1, 1990, but effective as provided therein (the "resolution"), of the Authority with respect to the project and the notes, under terms and provisions of which guaranty agreement, inter alia, this Township shall guarantee unconditionally, for the benefit of the holders from time to time of the notes, full and prompt payment of the principal of the notes in the aggregate principal amount of $4,800,000, together with interest on said principal of the notes at the rate provided therein, as such shall be due and payable.
B.
The guaranty agreement shall be for the life of the notes and shall
set forth terms, conditions, provisions, covenants and agreements
to be observed by this Township, the Authority and the bank in relation
to the project and the notes.
The guaranty agreement shall be substantially in the form presented
to this meeting, which form is approved, and a copy of the guaranty
agreement, in the form so presented to this meeting and so approved,
shall be filed with the Secretary of this Township and shall be made
available for inspection at reasonable times by interested persons
requesting such inspection.
A.
The Chairman or Vice Chairman of the Board of Supervisors and the
Secretary of this Township, respectively, are authorized and directed
to prepare, to certify and to file the debt statement, as such phrase
is defined in the Act, required by Section 410 of the Act,[1] in behalf of this Township.
[1]
Editor's Note: The 1978 Local Government Unit Debt Act
referred to in this article was repealed and replaced in 1996; see
now 53 Pa.C.S.A. § 8001 et seq.
B.
Proper officers of this Township are authorized and directed to prepare
and to execute an appropriate borrowing base certificate for filing
with the Department of Community Affairs (the "Department") of the
commonwealth, as required by the Act.
The Chairman or Vice Chairman of the Board of Supervisors and the Secretary, respectively, of this Township, as appropriate, are authorized and directed to prepare and to file appropriate statements required by Article II of the Act that are necessary to qualify all or any portion of the lease rental debt of this Township that is subject to exclusion as self-liquidating debt for exclusion from the appropriate debt limit as self-liquidating debt.
The Chairman or Vice Chairman of the Board of Supervisors and the Secretary of this Township, as applicable, are authorized and directed to execute, to attest and to deliver the guaranty agreement in behalf of this Township, substantially in the form approved in § 112-17; subject, however, to applicable provisions of the Act.
The Chairman or Vice Chairman of the Board of Supervisors and
the Secretary of this Township are authorized and directed to make
application to the Department for approval with respect to the guaranty
agreement, as required by Section 411(b) of the Act; and in connection
with such application, this Township shall pay to the Department the
filing fee as required by Section 803 of the Act, as amended, the
payment of which filing fee is authorized and approved.[1]
[1]
Editor's Note: The 1978 Local Government Unit Debt Act
referred to in this article was repealed and replaced in 1996; see
now 53 Pa.C.S.A. § 8001 et seq.
A.
The maximum guaranty obligations of this Township with respect to the notes as set forth in the guaranty agreement in the form referred to in § 112-17, which shall be payable if and as necessary, shall be as are set forth in Exhibit A which is attached hereto and made part hereof.[1]
[1]
Editor's Note: Exhibit A reads as follows:
The maximum amount to be budgeted by Scott Township, Columbia
County, Pennsylvania, for the purpose of fulfilling its obligations
as described in the guaranty agreement referred to in the ordinance
to which this is attached, shall be as follows:
For 1991, principal: 0, interest: $356,440, total: $356,440;
For 1992, principal: 0, interest: $319,200, total: $319,200;
For 1993, principal: $4,800.000, interest: 319,200, total:
$5,119,200.
B.
The phrase "fiscal year," as provided in the guaranty agreement,
as used in such Exhibit A, shall mean the fiscal year of this Township.
The maximum guaranty obligations of this Township, as set forth in § 112-22, shall be payable from the tax and other general revenues of this Township.
A.
This Township shall covenant in the guaranty agreement and does hereby
covenant to and with the paying agent, the Authority and the registered
owners, as appropriate from time to time, of the notes that shall
be outstanding, as such term is defined in the resolution, that this
Township shall include the amounts payable in respect of its guaranty
pursuant to the guaranty agreement for each fiscal year, as such phrase
is defined in the guaranty agreement, in which such sums are payable
in its budget for that fiscal year; shall appropriate such amounts
from its general revenues for the payment of such guaranty; and shall
duly and punctually pay or cause to be paid from its sinking fund
(hereinafter referred to) or any other of its revenues or funds the
amount payable in respect of such guaranty at the dates and places
and in the manner provided in the guaranty agreement according to
the true intent and meaning thereof; and for such budgeting, appropriation
and payment in respect of such guaranty, this Township shall and does
pledge, irrevocably, its full faith, credit and taxing power. The
foregoing covenants of this Township shall be enforceable specifically.
B.
For the purposes of complying with the foregoing covenant, this Township
covenants that it shall budget the amounts set forth in Exhibit A,
which is attached hereto and made part hereof,[1] such amounts being maximum amounts payable with respect
to the notes for the fiscal years in which such amounts are payable,
and shall appropriate and shall pay over to the bank such amounts;
subject, however, to provisions of the guaranty agreement with respect
to credit for certain sums that shall be available for such amounts
payable, all as more fully set forth in the guaranty agreement.
[1]
Editor's Note: Exhibit A reads as follows:
The maximum amount to be budgeted by Scott Township, Columbia
County, Pennsylvania, for the purpose of fulfilling its obligations
as described in the Guaranty Agreement referred to in the ordinance,
to which this is attached, shall be as follows:
For 1991, principal: 0, interest: $356,440, total: $356,440;
For 1992, principal: 0, interest: $319,200, total: $319,200;
For 1993, principal: $4,800.000, interest: 319,200, total:
$5,119,200.
C.
This Township also shall covenant in the guaranty agreement and does
hereby covenant that, to the extent sufficient money shall not be
available in its then-current budget at any time when payments are
required under the guaranty agreement and if it shall be unable to
incur debt lawfully in the current year for the purpose or to issue
tax anticipation notes or otherwise to satisfy its obligations under
the guaranty agreement, it shall include any amounts so payable by
it in its budget for the next succeeding fiscal year and shall appropriate
such amounts to the payment of such obligations and duly and punctually
shall pay or shall cause to be paid its obligations incurred under
the guaranty agreement in the manner therein stated, according to
the true intent and meaning thereof.
D.
This Township hereby establishes a sinking fund, as such phrase is
defined or applied in the Act, as amended and supplemented from time
to time, with respect to its obligations under the guaranty agreement
with respect to such guaranty, and First Eastern Bank, N.A., Wilkes-Barre,
Pennsylvania, is hereby appointed sinking fund depositary and paying
agent, as such phrases are defined or applied in the Act, as amended
and supplemented from time to time, to the extent necessary with respect
to obligations of this Township under the guaranty agreement with
respect to such guaranty.
This Township hereby irrevocably allocates to the Authority,
a subordinate entity, as that phrase is used in Subsection 148(f)(4)(c)(iv)
of the Internal Revenue Code of 1986, as amended (the "code"), of
this Township the small-issue rebate exemption inuring to this Township
under the code to the extent of the $4,800,000 aggregate principal
amount of the notes in the 1990 calendar year. This Township hereby
declares that such allocation bears a reasonable relationship to the
benefits received by this Township from the Authority in connection
with the project.
Proper officers of this Township are authorized and directed
to execute all documents and to do all other acts as may be necessary
and proper to carry out the intent and purpose of this article and
the undertakings of this Township under the guaranty agreement.
Reference in this article to specified officers of this Township
shall include and shall be construed to include if and as applicable
their respective successors in office.
This article shall become effective in accordance with provisions
of the Act.
