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HomeMy WebLinkAboutA014 - Loan Agreement dated December 29, 2015 LOAN AGREEMENT This Loan Agreement is entered into as of December 29, 2015, by and between the City of Ames, Iowa(the"City"), and Hutchinson, Shockey,Erley& Co., Chicago, IL(the"Purchaser"). The parties agree as follows: l. The Purchaser shall loan to the City the sum of$9,500,000,and the City's obligation to repay hereunder shall be evidenced by the issuance of Electric Revenue Bonds, Series 2015B, in the principal amount of$9,500,000(the"Bonds"). 2. The City adopted a resolution on December 8, 2015 (the "Resolution") authorizing and approving this Loan Agreement and providing for the issuance and securing the payment of the Bonds, and the Resolution is incorporated herein by reference, and the parties agree to abide by the terms and provisions of the Resolution. Principal of the Bonds and the interest thereon,together with any additional obligations as may be hereafter issued and outstanding from time to time under the conditions set forth in the Resolution, shall be payable solely and only from the Net Revenues of the Municipal Electric Light and Power Plant and System of the City (the"Net Revenues"), a sufficient portion of which has been ordered set aside and pledged for such purpose under the provisions of the Resolution. 3. The loan proceeds (the "Loan Proceeds") shall be used for the purposes set forth in the Resolution. Any remaining Loan Proceeds, including accrued interest, if any, shall be deposited in the Sinking Fund(defined in the Resolution)and shall be held therein and used, along with other amounts on deposit in such fund, to pay interest due on the Bonds on the first interest payment date. 4. The Bonds, in substantially the form set forth in the Resolution, shall be executed and delivered to or on behalf of the Purchaser to evidence the City's obligation to repay the amounts payable hereunder. The Bonds shall be dated December 29, 2015, shall bear interest, shall be payable as to principal and interest on the dates and in the amounts, shall be subject to prepayment prior to maturity and shall contain such other terms and provisions as provided in the Bonds and the Resolution. 5. Neither this Loan Agreement nor the Bonds shall constitute a general obligation of the City, nor be payable by taxation, and under no circumstances shall the City be in any manner liable by reason of the failure of the Net Revenues to be sufficient to pay the principal of the Bonds and the interest thereon or to otherwise discharge the City's obligation hereunder. 6. This Loan Agreement is executed pursuant to the provisions of Section 384.24A of the Code of Iowa and shall be read and construed as conforming to all provisions and requirements of the statute. IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the date first above written. CITY OF AMES,IOWA By �Ll�tt�L Mayor Atte City Clerk HUTCHINSON, SHOCKEY,ERLEY&CO. Chicago, IL By (Signature)