HomeMy WebLinkAboutMO # 1686Replaces M.O.#1675
MUNICIPAL ORDER NO. 1636
A MUNICIPAL ORDER OF THE CITY OF PADUCAH, KENTUCKY
APPROVING AND AUTHORIZING AN ASSUMPTION AGREEMENT
BETWEEN THE CITY OF PADUCAH, KENTUCKY AND THE
KENTUCKY INFRASTRUCTURE AUTHORITY.
WHEREAS, the City of Paducah, Kentucky (the "Governmental Agency") acquired the
water system (the "System") of the Hendron Water District ("Hendron Water District") pursuant
/"- to a merger agreement dated as of April 16, 2012 between the Hendron Water District and the
City of Paducah, Kentucky; and
WHEREAS, prior to the acquisition of the foregoing System by the Governmental
Agency, the Hendron Water District had determined that it was in the public interest to acquire
and construct certain improvements to the System; and
WHEREAS, the Hendron Water District had previously made an application to the
Kentucky Infrastructure Authority (the "Authority") for the purpose of providing monies to
finance costs of improvements to the System; and
WHEREAS, in order to obtain such monies, the Authority sold its revenue or revenue
refunding bonds (the "Bonds") and used a portion of the proceeds thereof to finance a loan (the
"Loan") to the Hendron Water District evidenced by an Assistance Agreement dated as of March
1, 1992 (Loan C91-12) between the Hendron Water District and the Authority; and
WHEREAS, in conjunction with the acquisition of the System by the Governmental
Agency, the Governmental Agency is to assume the obligations of the Hendron Water District
payable from the revenues of such System, including the obligations under the Loan; and
WHEREAS, in connection with the assumption of the Loan it is necessary and desirable
that the Governmental Agency enter into an Assumption Agreement (the "Assumption
Agreement') with the Authority to formally assume the Loan; and
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY
AS FOLLOWS:
SECTION 1. That the Board of Commissioners of the Governmental Agency hereby
approves and authorizes the Assumption Agreement between the Governmental Agency and the
Authority substantially in the form on file with the Governmental Agency for the purpose of
assuming the Loan.
SECTION 2. That the Mayor and Clerk of the Governmental Agency be and hereby are
authorized, directed and empowered to execute the Assumption Agreement and any other
necessary documents or agreements, and to otherwise act on behalf of the Governmental Agency
to effect such assumption.
SECTION 3. All motions, orders and parts thereof in conflict herewith, including
specifically Municipal Order No. 1675 adopted on July 10, 2012, are hereby repealed to the extent
of such conflict, and this Municipal Order shall be effqetive-natelyj
ADOPTED on September 11, 2012.
19,
Attest:
.�Ama�a��.
City Clerk
Adopted by the Board of Commissioners, September 11, 2012
Recorded by City Clerk, September 11, 2012
\no\Agree-PWW-KIA Assumption