HomeMy WebLinkAboutRes 20-99 05/04/1999 RESOLUTION NO. 2 0 ' 9 9
A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR
A LINE OF CREDIT WITH THE MOUNT PROSPECT PUBLIC LIBRARY
WHEREAS, the Mount Prospect Public Library is dependent upon the proceeds of the real estate tax levy for the
funding of day-to-day operations; and
WHEREAS, the Mount Prospect Public Library will not receive the benefit of the increase in their 1998 tax levy
until the second tax installment is received in the Fail; and
WHEREAS, the Mount Prospect Public Library will be facing insufficient funds this summer to meet payroll and
the payment of bills; and
WHEREAS, the Mayor 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 a cash
shortfall.
SECTION TWO: The terms of the line of credit shall be as set forth in the Agreement for Line of Credit, attached
as "Exhibit A.'
SECTION THREE.: The Village is authorized to execute the Agreement for Line of Credit and the line of credit
shall be available immediately upon execution of Exhibit A by the Library Board of Trustees.
SECTION FOUR: This Resolution shall be effective immediately upon its passage.
AYES: Corcoran, Lo~rztorfer, I~Iocch±, Skowron, I4±].ks
NAYES: l~one
ABSENT:
PASSED and APPROVED this 6 t:h day of May ,1999.
' - Gerai~l l~. Farley/
A'ITEST: Mayor
/ Velma W. Lowe Village Clerk
b~mbit A
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 ex-tend 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, 2000, Borrower
shall be entitled to draw upon the Line of Credit fi.om time to time, by submitting to Lender one
or more written 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.
Borrowers repayment to Lender of amounts borrowed on this Line of Credit shall
commence no later than seven days after the initial receipt of funds fi.om Cook County for the
second installment of 1998 real estate taxes. Borrower shall repay in full all amounts borrowed
on this Line of Credit no later than January 3 I, 2000 ("Default Date"). If 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 percent (5-1/2%) 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 Dally Balance if Borrower's indebtedness on this
Line of Credit.
DATED: Hay 5, ] 999
VILLAGE OF MOUNT PROSPECT THE BOARD OF LIBRARY
An Illinois municipal corporation TRUSTEES OF MOUNT PROSPECT