A RESOLUTION AUTHORIZING THE RENEWAL OF BOND ANTICIPATION NOTES.
WHEREAS, On June, 30, 2004 The City of Newton Falls entered into a loan Agreement (the “Loan Agreement”) with American Municipal Power, Inc. (“AMP, Inc.”), pursuant to which AMP, Inc. loaned Newton Falls a total of $3,350,000 and Newton Falls executed and delivered a promissory note therefore to AMP, Inc.; and
WHEREAS, The Loan Agreement contains provisions pursuant to which AMP, Inc. issues its short-term notes (the “Notes”) on an annual basis to provide the amounts loaned to Newton Falls; and
WHEREAS, The Loan Agreement also contains provisions pursuant to which Newton Falls pays interest on its debt to AMP, Inc. at the rate at which the Bond Anticipation Note is issued; and
WHEREAS, The Bond Anticipation Note about to mature and must be renewed in the principal amount of $2,045,000.00; and
WHEREAS, The City of Newton Falls acknowledges that it is obligated to pay interest at the stated rate of the Bond Anticipation Note upon issuance to AMP, Inc. until the maturity date of the renewal Bond Anticipation Note, at which time the interest rate may change; and
WHEREAS, The loan provided financing for various Capital Projects for the City’s electric system.
COUNCIL FOR THE CITY OF NEWTON FALLS, STATE OF OHIO, HEREBY RESOLVES:
SECTION I: The Newton Falls City Council hereby authorizes the City Manager to enter into and execute on behalf of the City a renewal of the Loan Agreement authorized in Ordinance 2004-19 with AMP, Inc.
PASSED IN COUNCIL THIS 4th DAY OF MAY 2015.
MAYOR, Lyle Waddell
City Clerk/Clerk of Council
Kathleen M. King