HomeMy WebLinkAboutMC-226U
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San Bernardino
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ORDINANCE NO. MC-226
ORDINANCE OF THE CITY OF SAN BERNARDINO
AMENDING ORDINANCE NO. 3815 RELATING TO
THE FINANCING OF PROJECTS FOR THE
ENCOURAGING OF INCREASED EMPLOYMENT BY
AMENDING SECTION 15 THEREOF RELATING TO
THE TRUSTEE AND DECLARING THE URGENCY
THEREOF TO TAKE EFFECT IMMEDIATELY
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO DO ORDAIN AS FOLLOWS:
Section 1. Amendment. Section 15 of Ordinance
No. 3815 shall be amended to read as follows:
"SECTION 15. Indenture Provisions in
Resolution of Issuance. In the discretion
of the City, any Bonds issued under the
provisions of this Ordinance may be secured
by indenture provisions in the Resolution
of Issuance by and between the City and a
corporate trustee or trustees, which may
be any trust company or bank having the
powers of a trust company within the
State or any other state in which it is
transacting business and the Resolution
of Issuance may contain such provisions
which are customarily found in indentures,
including, without limitation, the pro-
visions hereinafter set forth. Such
Resolution of Issuance may vest in
bondholders the right to remove and
appoint a new trustee or trustees. The
trustee or trustees may, at any time,
own all or any part of the Bonds, unless
otherwise provided in the Resolution of
Issuance. Such Resolution of Issuance
may vest in such trustee or trustees,
in trust or as agents, as provided
therein and as consistent with other
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provisions of this Section, property,
rights, powers and duties, and may
provide that the Revenues and any
other rights be pledged as security
for repayment of the Bonds, subject
to such agreements with bondholders
as may then exist. Such Resolution
of Issuance may contain covenants of
the City as to the acquisition of
Property, the disposition of any
Property, or part thereof, the sub-
jecting of additional Property to
the lien thereof, the issuance of
additional Bonds, the custody, in-
vestment and application of all moneys,
the creation and maintenance of
reserves, the disposition of insurance
or condemnation proceeds, and the use
of surplus Bond Proceeds. Any such
Resolution of Issuance may define
events of default thereunder, which
may include events of default by a
Company under the Project Agreements,
may specify the action to be taken
by the City upon an event of default,
may set forth the rights and remedies
of the bolldholders and of the trustee
or trustees, and may restrict the
individual right of action by bond-
holders. In addition, any such
Resolution of Issuance may contain
such other provisions as the City may
deem reasonable and proper and which
relate in any way to the security or
protection of bondholders. All expenses
incurred in carrying out the provisions
of such Resolution of Issuance shall be
treated as an Administrative Expense.
Any interest in Property established
by any Resolution of Issuance shall be
valid and binding from the date thereof,
and any Revenues or amounts to cover
Administrative Expenses received by,
or on behalf of, the City thereunder
shall immediately be subject to the
lien thereof without any further act,
which lien shall be valid and binding
as against all persons, irrespective
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San Bernardino
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San Bernardino
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of notice, without any filing or
recording except a filing in the
records of the City. All Revenues,
excepting (unless otherwise provided)
Bond Proceeds, shall further be
deemed to be trust funds and all
Revenues shall be held and applied
sOlely as provided in such Reso-
lution of Issuance but no bondholder
shall, as such, be in any manner
obligated to see to the proper
application thereof."
Section 2. Effective Date. This Ordinance is
an urgency measure and shall take effect upon adoption.
The facts constituting such urgency are: The present inter-
national situation, the efforts to reduce the current rate
of inflation and the current economic downturn, have made
interest rates fluctuate to an unprecedented extent. Unem-
ployment is rising. The City cannot control these external
forces, but it has enacted Ordinance No. 3815 relating to
the financing of projects for the encouraging of increased
employment within the City. Interest rates have been
fluctuating to an unprecedented extent. As they improve,
it is necessary to move very quickly or it may not be
possible to accomplish a particular financing. This has
happened this year with some of the individual bond
financings which had been approved by this Mayor and
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San Bernardino
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Common Council.
There is a current financing which is ready
to proceed. This financing involves the hospital in the
City commonly known as St. Bernardine's Hospital of San
Bernardino, which is a part of the SCH Health Care System
(Sisters of Charity of the Incarnate Word, Houston, Texas).
This financing of St. Bernardine's Hospital of San
Bernardino is tied in with simultaneous financings of faci-
lities of the SCH Health Care System in Texas, Louisiana,
Arkansas and Long Beach, California. Because it is a common
financing, it is necessary and desirable to use a Master
Trustee who, because of the geographical distribution of the
SCH Health Care Facilities, will not be in the State of
California. Because St. Bernardine's Hospital of San Bernar-
dino is an integral and important part of the health care
system of the City, this change in Ordinance No. 3815 should
be approved without the waiting period. The importance of
public health requires the City to use every power it has.
This makes it necessary that the City financing of this
health care facility pursuant to Ordinance No. 3815 be
accomplished in the most expeditious manner. The amendment
to Ordinance No. 3815 made by this Ordinance should expedite
the financing of the health care project which will help to
accomplish the purposes stated in Ordinance No. 3815.
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San Bernardino
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I HEREBY CERTIFY that the foregoing Ordinance was
duly adopted by the Mayor and Common Council of the City of
an adjourned
San Bernardino at / regular meeting thereof, held on the
22nd
day of
November
to wit:
, 1982, by the following vote,
AYES:
Councilmen: Castaneda, Reilly, Marks,
Quiel, Hobbs, Strickler
NOES: None
ABSENT: Council Member Hernandez
ABSTAIN: None
~/?/~/f:?/ ~~
/ C1ty Clerk
The foregoing Ordinance is hereby approved this
d/!1T7t day of -lhI/I':ArhM
Approved as to form:
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City A torney
, 1982.
an
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