Legislation # 10-0204 Enactment Number none
Type Resolution Effective Date none
Introduction Date 5/12/2010
Title Resolution Of The City Council Of The City Of Hampton, Virginia, Pursuant To Virginia Code Section 37.2-504.A.11 Authorizing The Hampton-Newport News Community Services Board To Incur Certain Borrowing Obligations
 
Legislation History 10-0204
DateNotice Of ActionDescription
5/12/2010 Approved - this item was removed from the consent agenda by Councilwoman Leary to give the Manager an opportunity to further explain it.
5/3/2010 Received By Clerk's Office
 
View Attachments 10-0204
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Legislation Text 10-0204

 

City of Hampton, Virginia

Resolution

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 10-0204

 

Enactment Number: -

 

Resolution Of The City Council Of The City Of Hampton, Virginia, Pursuant To Virginia Code Section 37.2-504.A.11 Authorizing The Hampton-Newport News Community Services Board To Incur Certain Borrowing Obligations

 

WHEREAS, the City of Hampton, Virginia (the City), with the City of Newport News, Virginia established the Hampton-Newport News Community Services Board (the "Board") as required by Section 37.2-500 of the Code of Virginia, 1950, as amended; and

 

WHEREAS, Bank of America, N.A. (the "Lender") has agreed to extend to the Board, on terms and conditions acceptable to the Lender, a line of credit in the maximum principal amount outstanding at any one time of $2,500,000 (the "Line of Credit"); and

 

WHEREAS, Section 37.2-504A.11 of the Code of Virginia of 1950, as amended, requires that the political subdivision or subdivisions that established the Board authorize loans applied for and accepted by the Board and the Board seeks the City's authorization solely to meet that statutory requirement; and

 

WHEREAS, the Line of Credit constitutes a loan applied for and accepted by the Board requiring such authorization; and

 

WHEREAS, the Line of Credit will enable the Board to carry out governmental activities in connection with its mental health, mental retardation and substance abuse services in the political subdivisions of Hampton, Virginia, and Newport News, Virginia; and

 

WHEREAS, the Board and the City understand and agree that no payments will be requested by the Board from the City in connection with repayment of the Line of Credit and that the obligations under the Line of Credit will not constitute a debt or pledge of the full faith and credit of the City and will not impose any liability on the City, nor is the requested authorization a guarantee on the part of the City of the Line of Credit.

 

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hampton, Virginia:

 

1. That pursuant to the requirement of Section 37.2-504.A.11 of the Code of Virginia of 1950, as amended, authorization is hereby given to the Hampton-Newport News Community Services Board for the above described Line of Credit applied for and accepted by the Board on the terms and conditions of the documents required by the Lender to evidence and secure the Line of Credit, and such authorization shall include any and all extensions and renewals of, and modifications to, the Line of Credit (other than any modification which would increase the principal amount of the Line of Credit in excess of $2,500,000).

 

2. The authorization of the Line of Credit applied for and accepted by the Board does not constitute an endorsement to the Lender of the creditworthiness of the Board nor is it a guarantee of the Line of Credit. Furthermore, the City shall not be obligated to pay nor to guarantee any debt incurred by the Board as a result of the Line of Credit applied for and accepted by the Board, nor any interest or other costs associated therewith. Accordingly, no debt of the Board and no Line of Credit shall constitute a debt or pledge of the faith and credit of the City, and the taxing power of the City shall not be pledged thereto.

 

 

3. This resolution shall be in effect on and after the date of its adoption.

 

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on May 12, 2010.

 

 

 

Signed by ____________________________ Date _________________

Molly Joseph Ward, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council