HomeMy WebLinkAboutRes 45-98 09/15/1998 RESOLUTION NO. 45-98
A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR A LINE
OF CREDIT WITH THE MOUNT PROSPECT PUBLIC LIBRARY
WHEREAS, Cook County has failed to send out timely real estate tax bills; and
WHEREAS, the Mount Prospect Public Library is dependent upon the proceeds of the real
estate taxes for the funding of day-to-day operations; and
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have
determined that it is in the best interests of the residents of the Village to assure that the Library
experiences no loss of revenue for the providing of its services.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: A line of credit, not to exceed $300,000.00 shall be established for the
operation of the Mount Prospect public Library for the purpose of protecting the residents
against the loss of Library services due to the delayed receipt of mai estate tax revenue.
~: The terms of the line of credit shall be as set forth in the Agreement for Line of
Credit, attached as Exhibit "A.'
~u~.~D~J~]JJ~E~ The Village is authddzed to e~e~e 'the'Ag~t f0i~ Liri~0f Cr~'dit~i~d ~.
the line of credit shall be available immediately upon execution of Exhibit "A" bY the Library
Board of Trustees.
SECTIION FOUR: This Resolution shall be effectively immediately upon its passage.
AYES: Clowes, Corcoran, Hoefert, Lohrstorfer, Nocchi, Wilks
NAYS: None
ABSENT None
PASSED and APPROVED this~8. _ ~
ATTEST: /
Village Clerk
AGREEMENT FOR LINE OF CREDIT
Credit Limit: $300,000 Mount Prospect, Illinois
Lender: The Village of Mount Prospect, an Illinois municipal corporation
Borrower: The Board of Library Trustees of Mount Prospect
In consideration of these mutual promises, Lender, the Village of Mount Prospect
(hereinafter "Lender"), agrees to extend to Borrower, the Board of Library Trustees of Mount
Prospect (hereinafter "Borrower"), a Line of Credit in the amount of $300,000.
Beginning on the date of this Agreement, and continuing until January 31, 1999. Borrower
shall be entitled to draw upon the Line of Credit from time to time, by submitting to Lender one or
more wdtten Demands, each signed by the designee of the Borrower. Each Demand shall
state the amount requested to be paid by Lender to Borrower. Subject to the terms of this
Agreement, upon receipt of such Demand, Lender shall pay the amount to Borrower or to
Borrower's order, within three (3) business days.
During the term of this Line of Credit, Borrower may from time to time make
payments to Lender in order to decrease its indebtedness to Lender under this Line of
Credit, and thereby increase its available credit.
Borrower's repayment to Lender of am.ounts borrowed on this Line,of Credit shall
commence no later than seven days after the initial receipt of funds fr0m C~.Ok C~0uh_ty for ?~:; '~.
the second installment of 1997.teal es~a~e t~es, BOn-OWer'§hall
borrowed on this Line of Credit no later than January 31, 1999 ("Default Date");~-*lf all'
amounts due are repaid on or before the Default Date, no interest shall be due.
All amounts borrowed on this Line of Credit which are not paid in full by the Default
Date shall bear interest at the agreed rate of five and one half (5-1/2%) percent per year
from the date on which the first draw was made on this Line of Credit. Any such interest
not paid in full shall be added to principal and thereafter shall bear like interest as the
principal. Interest shall be computed monthly based upon the Average Daily Balance of
Borrower's Indebtedness on this Line of Credit.
DATED: September 15, 1998
VILLAGE OF MOUNT PROSPECT THE BOARD OF LIBRARY
an Illi~ipal corporation ///~ TRUSTEES OF MOUNT PROSPECT