1970-02-09 - Resolution 1970-08 - Julien Colllins and Company secured to purchase Sewer and Water Revenue Bonds Series 1969 RESOLUTION NO. R-70-8
WHEREAS, to date the Village and its fiscal agent have
been unable to sell $4,000,000.00 Sewer and Water Revenue
Bonds, Series 1969, and
WHEREAS, contract with Barcus, Kindred & Company, Inc.
and Julien Collins & Company has expired, and
WHEREAS, Northern Securities Corporation has induced
Julien Collins & Company to make .another offer to buy said bonds,
RESOLVED that the Village of Buffalo Grove, Illinois, by
its proper officers, execute an option agreement with Julien
Collins & Company for the purchase of said bonds. Said option
to run from February 9 , 1970, to and including
March 9, , 1970.
A copy of said Option Agreement is attached hereto and
made a part hereof as Exhibit A.
AYES: 5 NAYS: 0 ABSENT 1
Passed and approved the 9th day of February, A.D. , 1970.
OPTION AGREEMENT
THIS AGREEMENT made and entered into this 9th day of
February, 1970, by and between Julien Collins & Company, (the
Investment Bankers) and the Village of Buffalo Grove, and Illinois
Municipal Corporation located in the Counties of Cook and Lake,
Illinois (the Village) .
W I T N E S S E T H:
WHEREAS, the Village has deemed it necessary and advisable
to issue $4,OQ0,000 principal amount of its Waterworks and
Sewerage Revenue Bonds to finance the acquisition by purchase of
the existing Waterworks and Sewerage System now owned by the
Buffalo Utility Company, to construct additions, extensions and
improvements thereto, and to refund $650,000 Waterworks and Sewerage
Revenue Bonds, Series of 1966 heretofore issued; and
WHEREAS, the Village has approved a Purchase Agreement by
and between the Village and the Buffalo Utility Company to acquire
said private water and sewer system and has taken all other necessary
steps to sell said Waterworks and Sewerage Revenue Bonds; and
WHEREAS, due to money market conditions and interest rate
' limitations imposed byIllinois the Village has been p law, g prevented
from selling said Bonds; and
WHEREAS, Northern Securities Corporation, a corporation,
as fiscal agent for the Village has been instrumental in negotiating
this Option Agreement for the purchase of said bonds.
WHEREAS, the Investment Bankers, having extensive knowledge
and experience in developing and marketing water and sewer revenue
obligations, have indicated a desire to purchase said Bonds and
the Village desires to sell said Bonds.
NOW, THEREFORE, for and in consideration of the mutual
covenants hereinafter contained, the parties hereto agree as
follows:
Section 1. The Village hereby agrees to give the Invest-
ment Bankers an exclusive option to purchase said Bonds for a
period of 28 days from the date this Agreement becomes effective
at par and a net interest cost not to exceed 7% per annum, plus
accrued interest to date of delivery.
Section 2. The Investment Bankers hereby agree to proceed
immediately with steps to effectuate the purchase of said bonds
at a price and upon terms and conditions satisfactory in all
respects to the Investment Bankers within the time period contained
in this Agreement.
Section 3. This Agreement shall expire on midnight,
March 9 , 1970, unless mutually extended by the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
Option Agreement to be executed in their respective corporate names
by their respective officers thereunto duly authorized and their
respective corporate seals to be hereunto affixed and attested by
their respective officers having custody thereof the day and year
' first above written.
VILLAGE OF BUFFALO GROVE, a
Munic ' 4 _Corpor Lion, /-
(SEAL) BY i,
Presidefit.
ATTEST:
( Village Clerk JULIEN COLLINS & COMPANY, a corp.
(SEAL) By
VicePresident-Parnter
ATTEST:
Socrotary. -2-