HomeMy WebLinkAbout1986-07-28 86-309 RESOLVE86-309
Introiuced try councilor Tilley, July 28, 1986
CITY OF BANGOR
MILE.) ¢SOIUCt Authpri ing mmenments to the Cacun®rc Wlatim to
Issuance and sale of a xavenue Obligation Security
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BY the C'BB Cnaxmil Of t My BfRdsBar:
RESOLVED. V acting pursuant to the auti crity of the Smgor City
COuncil by Resolve adopted m October 16, 1985 there has been issued the City
of Bangor Revence Obligation Security (1985 ndams-Puasell Co., Inc.
Consttuctim Project), as a single instrument in the original principal amount
of $1,300,000 (the "Security"), and in convection tbenewlth the City entered
into loan agreement (the "Loan Agreomenc") between tie City and Adams-
Pussell CO., Inc. (the "Bot'roer"1, accepted from the Borrower a lronissory
rote in an original principal amort of $1,300,000 payable to the City (the
"Romissary, Nota"), entered into a security agreement (the "Security
Agreement") with the E rower, entered into an indenture (the "Indenture") by
woo between the City and Norstar Bank of thine as Trustee, and entered into
and executsi other a3reoments and dccuments relating to the project pursuant
to Mich the Borrower enlarged its facility, knw.m as the Anzac Division, on
Griffin Road In Bangor; and
�, the City of Bangor has assignsi all of its interests
in the Loan Agreoment, the R OMISS,ry Note, the Security Agreement and other
docunents.relating to the transaction to Norstar Bank of Maine as Trustee (the
"ttustee"); and
Niff,`BE95, the Borrower desires to separate its electronics
business (Midi includes its facility on 4 iffin Roam and the activities
thereon) from the remainder of its business activities by means of creating a
new ccrp atim to to known as Adams -Russell Electronics Co., Inc.
("ElectroniCS") to Mich tie assets subject to tie liabilities of its
electronics business will be transferred in exchange for the issuance of all
stack of ElectroniCS CO. to the Borrower; and
WB.'RFAS, in order to accanplish this transfer of assets it is
necessary for the City of Bangor to agree to substitute Electronics for the
BaLraaer as a party to the various docunents involved in the 1985 transaction;
and
WIEPPtS, by virtue of the laws of the State of Maine, the
City of Bangor has on liability with respect to t1aa Revenue Obligation
Security, the debt w on Mich is paid solely from the revenues of the
project directly to then U tee,
_2_
tAV, TH82EP51E, By the City Council of the City of Bangor, be
R LWD, My ted City Of Bangor bereby consents W the
aasignnent by Barmser of its interests as the lessee under an Indenture of
(ease dated May 1, 1981 between the City and the Burrower, to Electronics,
such assignment beteg permitted under Article XIX of the Indenture of Kase;
and be it
B CEJ D, TENT the City Of Bangor Iereby consents to the
transfer from the Borrower W electronics of all assets and business
activities relating to the Security, including the facility of %dans-Pussell
Co., Inc., Anzac Division located on Griffin Rad in Bangor, Maine; and be it
F LVED, THAT tle City of Bangor hereby acknowledges and
consents W tie assignment by the Boxmwer of all of its rights, title and
interest and W the assumption by electronics of the Eorroxer's debts,
liabilities, obligations and duties under tle Security, the Imo; Agreement,
the Promissory Note, the Security Agreement, the Indenture and any and all
other agreements and instruments executed and delivered in connection
therewith end hereby releases the E rromer from all Obligation and liability
W the City pursuant W the aforesaid documents or any of then; ad be it
further
ll LVED, THAT the City M merger, the City Finance Director
aM the Ctainaan of the Bags City Council beand each of them hereby is
authorized, acting singly, to take all action,'including execution and
delivery of documents on behalf of the City as' may be necessary, desirable and
a1 cytiate in order to carry into effect the full purport and] intent of the
preceding resolutions or any of ttsm.
Amendment 9-28-86
_ CITY OF BANGOR
(TITLE.)' �RVZOJlpyg. ........authorizinamendments to the documents relating to
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issuance and sale of arevenue obligation security for Adams -Russell
By Ou City OmMaH WVW CRY Of14ma .
RESOLVED, NOW THEREFORE, be it resolved:
(1) That the City of Bangor hereby consentsto -the
assignment by Borrower of its interests as the lessee under an
Indenture of Lease dated May 1, 1981 between the .City and the
Borrower, to Electronics, such assignment being permitted under -
Article XIX of the Indenture of Lease and the Cityhereby' releases
the Borrower from all 'obligations oZ' the Borrower under the Indenture
of Lease, sa a xe ease erng subject to t e 'receipt o eevi encesatis-
MIactory to rue City Manager that the oliligations -o£ the Borrower have
en assum by Electronics.
(2) That the City of Bangor hereby cents to the
transfer from the Borrower to Electronics of allaa seta and business
activities relating -tothe Security, including thefacility of
Adams -Russell. CO., Inc., Anzac Divisionlocated on Griffin Road in
Bangor, Maine. -
(3) That the City of Bangor hereby,acknowledgea and con-
sents to the assignment by the. Borrower of all of its rights, title
and interest and to the assumption' by Electronics of the Borrower's
debts, liabilities, obligations and duties under the .Security, the
Loan Agreement, the Promissory Note, the Security Agreement, the
Indenture and any and all other agreementsand instruments executed
and delivered in connection therewith and hereby releases the Bor-
rower from all obligation and liability to the City pursuant to the
aforesaid documents or any of them.
(4) That the City Manager, the City Finance Director and
the Chairman of theBangorCity Council be and each of ,them hereby
is authorized,.acting singly, to take all action, including execu-
tion and delivery of documents on behalf of the City as
may be
necessary, desirable and appropriate in under to carry into effect
the full purport and intent of the preceding resolutions or any of
them.
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IN CIw COUNCIL
arly 28, ilee y
Amendedi?�4=3.
A "meet tech �
iia
86-309
RESOLVE
iz -
Autborining Amendments to the oocumence
Relating to Issuance and sale Of a
Obligation security for Adams -Russell CO., m: