Township of Scott, PA
Columbia County
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Table of Contents
Table of Contents
[Adopted 6-18-1990 by Ord. No. 4-1990[1]]
[1]
Editor's Note: The introductory paragraphs to this ordinance defined "Act" as "Pennsylvania Act No. 1972-185, as reenacted, amended and revised by Pennsylvania Act No. 1978-52, known as the 'Local Government Unit Debt Act,' as amended and supplemented from time to time." [See now the Local Government Unit Debt Act, Part VII of Act 177 of 1996, as amended (53 Pa.C.S.A. § 8001 et seq.).] It also defined "Authority" as the "Scott Township Authority" and "project" as "a project that consists of, inter alia, planning, designing, acquiring and constructing sanitary sewage collection and transmission system facilities, including all related and necessary facilities required for rendering sewage service in and for certain portions of this Township."
This Township authorizes and requests the Authority to undertake and to complete the acquisition and construction of the project.
This Township determines that the Authority shall incur debt, which shall be lease rental debt of this Township pursuant to the Act, to acquire and construct the project.
Such debt will constitute lease rental debt of this Township pursuant to the Act; shall be in the aggregate principal amount of $4,800,000; shall be evidenced by certain obligations to be issued by the Authority under the Municipal Authorities Act and shall consist of a series of guaranteed sewer project notes, to be designated as "Guaranteed Sewer Project Notes, Series of 1990," dated as of July 1, 1990, (the "notes"), which notes shall have the benefit of and shall be secured by the guaranty obligations of this Township pursuant to the guaranty agreement (hereinafter mentioned and identified).
This Township specifies that the realistic useful life of the project is at least 30 years.
A. 
This Township, as guarantor, shall enter into a guaranty agreement, dated as of July 1, 1990, (the "guaranty agreement") substantially in the form referred to in § 112-17, with the Authority and First Eastern Bank, N.A. (the paying agent), Wilkes-Barre, Pennsylvania, appointed as paying agent under a resolution dated for convenience as of July 1, 1990, but effective as provided therein (the "resolution"), of the Authority with respect to the project and the notes, under terms and provisions of which guaranty agreement, inter alia, this Township shall guarantee unconditionally, for the benefit of the holders from time to time of the notes, full and prompt payment of the principal of the notes in the aggregate principal amount of $4,800,000, together with interest on said principal of the notes at the rate provided therein, as such shall be due and payable.
B. 
The guaranty agreement shall be for the life of the notes and shall set forth terms, conditions, provisions, covenants and agreements to be observed by this Township, the Authority and the bank in relation to the project and the notes.
The guaranty agreement shall be substantially in the form presented to this meeting, which form is approved, and a copy of the guaranty agreement, in the form so presented to this meeting and so approved, shall be filed with the Secretary of this Township and shall be made available for inspection at reasonable times by interested persons requesting such inspection.
A. 
The Chairman or Vice Chairman of the Board of Supervisors and the Secretary of this Township, respectively, are authorized and directed to prepare, to certify and to file the debt statement, as such phrase is defined in the Act, required by Section 410 of the Act,[1] in behalf of this Township.
[1]
Editor's Note: The 1978 Local Government Unit Debt Act referred to in this article was repealed and replaced in 1996; see now 53 Pa.C.S.A. § 8001 et seq.
B. 
Proper officers of this Township are authorized and directed to prepare and to execute an appropriate borrowing base certificate for filing with the Department of Community Affairs (the "Department") of the commonwealth, as required by the Act.
The Chairman or Vice Chairman of the Board of Supervisors and the Secretary, respectively, of this Township, as appropriate, are authorized and directed to prepare and to file appropriate statements required by Article II of the Act that are necessary to qualify all or any portion of the lease rental debt of this Township that is subject to exclusion as self-liquidating debt for exclusion from the appropriate debt limit as self-liquidating debt.
The Chairman or Vice Chairman of the Board of Supervisors and the Secretary of this Township, as applicable, are authorized and directed to execute, to attest and to deliver the guaranty agreement in behalf of this Township, substantially in the form approved in § 112-17; subject, however, to applicable provisions of the Act.
The Chairman or Vice Chairman of the Board of Supervisors and the Secretary of this Township are authorized and directed to make application to the Department for approval with respect to the guaranty agreement, as required by Section 411(b) of the Act; and in connection with such application, this Township shall pay to the Department the filing fee as required by Section 803 of the Act, as amended, the payment of which filing fee is authorized and approved.[1]
[1]
Editor's Note: The 1978 Local Government Unit Debt Act referred to in this article was repealed and replaced in 1996; see now 53 Pa.C.S.A. § 8001 et seq.
A. 
The maximum guaranty obligations of this Township with respect to the notes as set forth in the guaranty agreement in the form referred to in § 112-17, which shall be payable if and as necessary, shall be as are set forth in Exhibit A which is attached hereto and made part hereof.[1]
[1]
Editor's Note: Exhibit A reads as follows:
The maximum amount to be budgeted by Scott Township, Columbia County, Pennsylvania, for the purpose of fulfilling its obligations as described in the guaranty agreement referred to in the ordinance to which this is attached, shall be as follows:
For 1991, principal: 0, interest: $356,440, total: $356,440;
For 1992, principal: 0, interest: $319,200, total: $319,200;
For 1993, principal: $4,800.000, interest: 319,200, total: $5,119,200.
B. 
The phrase "fiscal year," as provided in the guaranty agreement, as used in such Exhibit A, shall mean the fiscal year of this Township.
The maximum guaranty obligations of this Township, as set forth in § 112-22, shall be payable from the tax and other general revenues of this Township.
A. 
This Township shall covenant in the guaranty agreement and does hereby covenant to and with the paying agent, the Authority and the registered owners, as appropriate from time to time, of the notes that shall be outstanding, as such term is defined in the resolution, that this Township shall include the amounts payable in respect of its guaranty pursuant to the guaranty agreement for each fiscal year, as such phrase is defined in the guaranty agreement, in which such sums are payable in its budget for that fiscal year; shall appropriate such amounts from its general revenues for the payment of such guaranty; and shall duly and punctually pay or cause to be paid from its sinking fund (hereinafter referred to) or any other of its revenues or funds the amount payable in respect of such guaranty at the dates and places and in the manner provided in the guaranty agreement according to the true intent and meaning thereof; and for such budgeting, appropriation and payment in respect of such guaranty, this Township shall and does pledge, irrevocably, its full faith, credit and taxing power. The foregoing covenants of this Township shall be enforceable specifically.
B. 
For the purposes of complying with the foregoing covenant, this Township covenants that it shall budget the amounts set forth in Exhibit A, which is attached hereto and made part hereof,[1] such amounts being maximum amounts payable with respect to the notes for the fiscal years in which such amounts are payable, and shall appropriate and shall pay over to the bank such amounts; subject, however, to provisions of the guaranty agreement with respect to credit for certain sums that shall be available for such amounts payable, all as more fully set forth in the guaranty agreement.
[1]
Editor's Note: Exhibit A reads as follows:
The maximum amount to be budgeted by Scott Township, Columbia County, Pennsylvania, for the purpose of fulfilling its obligations as described in the Guaranty Agreement referred to in the ordinance, to which this is attached, shall be as follows:
For 1991, principal: 0, interest: $356,440, total: $356,440;
For 1992, principal: 0, interest: $319,200, total: $319,200;
For 1993, principal: $4,800.000, interest: 319,200, total: $5,119,200.
C. 
This Township also shall covenant in the guaranty agreement and does hereby covenant that, to the extent sufficient money shall not be available in its then-current budget at any time when payments are required under the guaranty agreement and if it shall be unable to incur debt lawfully in the current year for the purpose or to issue tax anticipation notes or otherwise to satisfy its obligations under the guaranty agreement, it shall include any amounts so payable by it in its budget for the next succeeding fiscal year and shall appropriate such amounts to the payment of such obligations and duly and punctually shall pay or shall cause to be paid its obligations incurred under the guaranty agreement in the manner therein stated, according to the true intent and meaning thereof.
D. 
This Township hereby establishes a sinking fund, as such phrase is defined or applied in the Act, as amended and supplemented from time to time, with respect to its obligations under the guaranty agreement with respect to such guaranty, and First Eastern Bank, N.A., Wilkes-Barre, Pennsylvania, is hereby appointed sinking fund depositary and paying agent, as such phrases are defined or applied in the Act, as amended and supplemented from time to time, to the extent necessary with respect to obligations of this Township under the guaranty agreement with respect to such guaranty.
This Township hereby irrevocably allocates to the Authority, a subordinate entity, as that phrase is used in Subsection 148(f)(4)(c)(iv) of the Internal Revenue Code of 1986, as amended (the "code"), of this Township the small-issue rebate exemption inuring to this Township under the code to the extent of the $4,800,000 aggregate principal amount of the notes in the 1990 calendar year. This Township hereby declares that such allocation bears a reasonable relationship to the benefits received by this Township from the Authority in connection with the project.
Proper officers of this Township are authorized and directed to execute all documents and to do all other acts as may be necessary and proper to carry out the intent and purpose of this article and the undertakings of this Township under the guaranty agreement.
Reference in this article to specified officers of this Township shall include and shall be construed to include if and as applicable their respective successors in office.
This article shall become effective in accordance with provisions of the Act.