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HomeMy WebLinkAboutRes 49-99 10/05/1999vwI 9/30/99 RESOLUTION NO. 49-99 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 later in the fall; and WHEREAS, the Village of Mount Prospect passed Resolution No. 20-99 on May 4, 1999 establishing a Line of Credit for $300,000.00 for the operation of the Mount Prospect Public Library to be repaid in full no later than January 31,2000; and WHEREAS, the Mount Prospect Public Library will be facing insufficient funds once again this fall for the same reason of delayed tax 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: An additional line of credit, not to exceed $300,000 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. This shall be in addition to the Line of Credit established May 4, 1999. 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 Mount Prospect Library Board of Trustees. age 2 MPPL Line of Credit SECTION FOUR: This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: Corcoran, Hoefert, Lohrstorfer, Nocchi, Skow~on, ~41]ks NAYS: None ABSENT: None PASSED and APPROVED this 5th day of ¢)ctnhCr , 1999. ATTEST: Village Clerk Exhibit 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 Mount Prospect Library Board of Trustees In consideration of these mutual promises, Lender, the Village of Mount Prospect (hereinafter "Lender"), agrees to extend to Borrower, the Mount Prospect Library Board of Trustees (hereinafter "Borrower"), a Line of Credit in the amount of $300,000. Beginning on the date of this agreement, and continuing until April 30, 2000, Borrower shall be entitled to draw upon the Line of Credit from time to time, by submitting to Lender one or more 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 amounts borrowed on this Line of Credit shall commence no later than seven days after the initial receipt of funds from 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 April 30, 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 Daily Balance of Borrower's indebtedness on this Line of Credit. VILLAGE OF MOUNT PROSPECT THE MOUNT PROSPECT ~ratio~ .~/;¢' ~ LIBRARY BOARD OF TRUSTEES DATED: