Res 1935 3/1/1977RESOLUTION NO. /V,Aj
RESOLUTION APPROVING CONTINUING CONTRACT WITH
THE FIRST-WICHITA NATIONAL BANK CONCERNING
WICHITA GENERAL HOSPITAL NOTE, AND APPROVING
ENCUMBRANCE OF LAND IN BLOCK 257, ORIGINAL TOWN.
WHEREAS, the City of Wichita Falls sold to Wichita
County-City of Wichita Falls, Texas, Hospital Board all
of Block 257 of the Original Town of Wichita Falls, save and
except Lot 1 of the replat of Lots 1 through 6 of such Block
257 for a price of four hundred thousand ($400, 000. 00) dol-
lars, for which such Hospital Board executed a promissory note
in that amount payable to the order of the City of Wichita
Falls, that was secured by a vendor' s lien and a deed of trust;
and
WHEREAS, the City of Wichita Falls sold such note, to-
gether with the vendor' s lien and deed of trust, to The
First-Wichita National Bank of Wichita Falls. The contract
between the City and such Bank provided that the assignment
of the note is with recourse; that is, the City shall remain
secondarily liable on the note, and shall indemnify such Bank
from any loss on the note.
WHEREAS, the installment due on such note on December 30,
1976 is $265,510. 87, and the Wichita County-City of Wichita
Falls, Texas, Hospital Board has requested that the Bank
renew and extend the unpaid balance of such note into a new
note in such principal sum and payable in 18 equal semi-annual
installments in a sum sufficient to amortize such note, the
first such installment to be due and payable June 30, 1977 ,
and the Bank is willing to accept the renewal note upon the
condition that the City shall remain secondarily liable on
the renewal note and shall indemnify such Bank from any loss
on the renewal note; and
WHEREAS, to secure payment of the renewal note the Wichita
County-City of Wichita Falls, Texas, Hospital Board shall
encumber the above described land by a deed of trust lien
agreement in favor of the holder of the renewal note; and
WHEREAS, in accordance with Section 103 of the Charter
of the City of Wichita Falls, more than two weeks' public notice
was given by Resolution No. 1916 that the Board of Al-
dermen would consider the adoption of a resolution authorizing
such continuing contract with the First-Wichita National Bank
of Wichita Falls and approval of the encumbrance of the a-
bove described land to secure payment of the renewal note.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN
OF THE CITY OF WICHITA FALLS, TEXAS, THAT:
The Mayor is hereby authorized to execute and deliver
to The First-Wichita National Bank of Wichita Falls a con-
tinuing contract with such Bank, under the terms of which con-
tract the City of Wichita Falls, acting by and through its
Board of Aldermen, does hereby agree to:
Remain secondarily liable on the above described $265, 510. 87
note, and to hold and save The First-Wichita National Bank of
Wichita Falls free from any loss on such note. During each
year while there is any liability by reason of this agreement,
including the calendar year 1977 , the Board of Aldermen of the
City shall compute and ascertain the rate and amount of
ad valorem tax, based on the latest approved tax rolls of said
r
City, with full allowances being made for tax delinquencies
and costs of tax collection, which shall be sufficient to
raise and produce the money required to pay any sums which
may be or become due during any such year, and in no instance
to be less than 2% of such obligation, together with all in-
terest thereon, because of the obligation herein assumed.
Said rate and amount of ad valorem tax is hereby ordered to be
levied and is hereby levied against all taxable property in
said City for each year while any liability exists by reason
of the obligation undertaken by this paragraph of this
assignment, and the said ad valorem tax shall be assessed and
collected each year until all of the obligations herein
incurred shall have been discharged and all liability here-
under discharged. Such agreement shall continue for a period
of ten years from December 30, 1976.
The encumbrance of the above described land to secure
payment of the renewal note by the deed of trust lien agree-
ment from the Wichita County-City of Wichita Falls, Texas,
Hospital Board in favor of the holder of the renewal note
is approved.
PASSED AND APPROVED this k . day of 2/4 Le,./t_„ 1977.
M
ATTEST:
a--7.
City Clerk
APPROVED:
H. P. Hodge, Jr. , City Attorney
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