HomeMy WebLinkAboutResolution 1220
li =LUTION NO. /W U
A Resolution
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS
That Resolution No 1139, adopted by the City Council
on April 4, 1986, be and is hereby amended by changing
Paragraph (9) thereof to read as follows
11(9) That in the event a.. loan to the Local
Institution in the amount requested from the
Authority by the Local Institution is not funded
within 365 days of the date of this Resolution,
the terms of this Resolution shall expire and be
null and void, retroactive to the date of this
Resolution "
As hereby amended, such Resolution shall remain in full force
and effect according to the terms and conditions thereof
Adopted this 31st day of March, 1987.
4
APPROVED BY
coTr COUNCIL
MAR ill 1987
?E1. 6
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RESOLUTION
47-?7?
A RESOLUTION REQUESTING TEXAS HIGHER EDUCATION AUTHORITY,
INC., TO ACT ON BEHALF OF THE CITY OF FORT WORTH, AND AS ITS DULY
CONSTITUTED AUTHORITY AND INSTRUMENTALITY IN PROVIDING FINANCING
THROUGH ITS EDUCATIONAL FACILITIES REVENUE BOND PROGRAM OF
EDUCATIONAL FACILITIES FOR TEXAS WESLEYAN COLLEGE, EACH AN
INSTITUTION OF HIGHER EDUCATION LOCATED WITHIN THE BOUNDARIES OF
THIS CITY.
WHEREAS, the City of Fort Worth, Texas, has ordered created
the Texas Higher Education Authority, Inc. (the "Authority"),
under and pursuant to Chapter 53, Texas Education Code, as
amended (the "Act"), and particularly Section 53.35(b) thereof,
to act on its behalf and as its duly constituted authority and
instrumentality and on behalf, and as the duly constituted
authority and instrumentality, of such other cities as shall
request it to do so in accordance with the Act, all for the
purpose of aiding in the promotion and development of higher
education at the college and university level by Texas nonprofit
institutions of higher education located within the participating
cities on whose behalf the Authority is created or requested to
act; and
WHEREAS, the Authority has established a program (the
"Program") for such purpose on behalf of each participating city,
including this City, if approved by this City; and
WHEREAS, the Authority has funded the Program through the
issuance of its Educational Facilities Revenue Bonds, Series
1985A and Series 1985B, aggregating $175,000,000 in principal
amount (the "Bonds"); and
WHEREAS, Texas Wesleyan College (the "Local Institution"),
an institution of higher education under the Act., and being
located within this City, has requested that certain of their
respective educational facilities be financed through the
Program; and
WHEREAS, the Local Institution and this City have jointly
determined that participation in the Program provides a better
and less expensive method of financing than other available
alternatives; and
WHEREAS, this Resolution is adopted under the authority of
Section 53.35 of the Act, and shall constitute a request for the
Authority to act on behalf of this City as its duly constituted
authority and instrumentality for the purpose of permitting
institutions of higher education located within this City to
participate in the Program as authorized by the Act; and
WHEREAS, Section 53.35(b) of the Act provides that if the
Authority agrees to the request of this City to act on its
behalf, the directors of the Authority shall thereafter be
appointed and be subject to removal by the governing body of this
City; and
WHEREAS, Section 53.35(b) of the Act further provides that
Section 53.14 of the Act shall apply and govern such corporation
and its procedures and bonds; and
WHEREAS, Section 53.14 of the Act provides that if the
Authority includes more than one city, each governing body shall
appoint an equal number of directors unless otherwise agreed by
the cities; and
WHEREAS, the Program guidelines require the Local Institu-
tion to satisfy certain conditions prior to being accepted into
the Program and becoming eligible to receive funds under the
Program, including the approval by Financial Guaranty Insurance
Company, an insurance company which has insured the payment of
the debt service on the Bonds; and
WHEREAS, the Local Institution has submitted evidence
satisfactory to this City that the Local Institution has been
accepted as a participant in the Program; and
WHEREAS, the agreement referred to in Section 2 of the
Resolution has been executed by the City of University Park,
Texas, prior to the date of this Resolution, and
WHEREAS, the indemnification agreement referred to in
Section 6 of this Resolution has been executed by the under-
writers named therein prior to the date of this Resolution;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, AS FOLLOWS:
(1) That this City hereby requests the Authority
to act on its behalf and as its duly constituted
authority and instrumentality for the sole purpose of
making funds available under the Program to finance
educational facilities authorized by the Act for the
Local Institution, and this City authorizes the use of
such funds for the purpose of the Local Institution in
accordance with the terms and requirements of the
Program as developed, defined and from time to time
implemented by the Authority.
(2) That the City Manager is hereby authorized to
enter into an agreement with the City of University
Park, Texas, whereby this City hereby waives its
statutory right to appoint and/or remove any director
of the Board of Directors of the Authority, and this
2
City hereby approves the Articles of Incorporation of
the Authority, attached hereto as Exhibit A.
(3) That in the event that any change is made to
the Articles of Incorporation subsequent to adoption of
this Resolution that is not approved by the governing
body of this City within 30 days of such change, this
Resolution shall terminate and the Authority shall have
no further authority to act on behalf of this City.
(4) That in the event that the governing body of
this City directs that a notice of a required change to
the Articles of Incorporation be sent to the Authority
directing that the Articles of Incorporation be
amended, and such action as specified in said notice is
not taken within 30 days of the mailing of said notice,
this Resolution shall terminate and the Authority shall
have no further authority to act on behalf of this
City.
(5) That this City is not, by the adoption of
this Resolution, authorizing the issuance of any
obligations of this City and this City is not pledging
any of its properties, revenues or taxes to secure any
obligations of the Authority, and no obligations issued
by the Authority shall ever create an obligation of
this City nor create any indebtedness or liability or
be a special, general or moral obligation of this City
and all obligations issued by the Authority shall
contain a statement to such effect.
(6) That the City Manager is hereby authorized to
accept the indemnification agreement executed by the
investment banking firms which purchased the Bonds
issued by the Authority to finance the Program; pro-
vided that such indemnification agreement shall be in
substantially the same form as the indemnification
language the Local Institution is required to agree to,
a copy of which is attached hereto as Exhibit B.
(7) That this City, by the adoption of this
Resolution, assumes no responsibility for any costs or
expenses incurred in connection with the issuance of
any obligations by the Authority to finance and/or
operate the Program.
(8) That this City requires that any investment
banking firm purchasing obligations, the proceeds of
which are to finance the Program, from the Authority,
shall assume responsibility for the marketing, sale and
distribution of such obligations under the Texas
Securities Act, as amended, similar laws of other
states where the obligations are sold or offered for
sale, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the
3
Trust Indenture Act of 1939, as amended, and this City
assumes no responsibility for any matter in connection
therewith.
(9) That in the event a loan to the Local
Institution in the amount requested from the Authority
by the Local Institution is not funded within 90 days
of the date of this Resolution, the terms of this
Resolution shall expire and be null and void, retro-
active to the date of this Resolution.
s
This Resolution shall take effect immediately from and after
its adoption.
PASSED AND APPROVED this day of , 1986.
(SEAL)
ATTEST:
City-Secretary
APPROVED AS TO FORM:
Mayor
City Attorney
4
ARTICLE VII
All powers of the Corporation shall be vested in a board of directors
consisting of not less than seven nor more than eleven directors, as may be fixed by
the bylaws of the Corporation, each of whom shall be appointed by the governing
body of the City. Each director shall serve for a term of two years or until his or
her successor is appointed by the governing body of the City. No officer or
employee of the City is eligible for appointment as a director. Directors are not
entitled to compensation for services but are entitled to reimbursement for
expenses incurred in performing such services. Any director may be removed from
office at any time, with or without cause, by written ordinance of the governing
body of the City All vacancies, from whatever cause, shall be filled by the
governing body of the City.
ARTICLE VIII
All matters pertaining to the internal affairs of the Corporation shall be
governed by the bylaws of the Corporation, so long as such bylaws are not
inconsistent with these Articles of Incorporation or with the Act.
ARTICLE IX
The number of directors constituting the initial board of directors is seven.
The names and addresses of the initial directors are.
NAME:
Thomas Max Nygaard
James B. Gardner
Frank C. Carter
Alex Bul
Martin C. Cude, Jr.
Trevor W. Rees-Jones
Ronald J. Case
A D D RESS.
7022 Hunters Glen, Dallas, Texas 75205
3408 Caruth, Dallas, Texas 75225
3936 Marquette, Dallas, Texas 75225
3016 Bryn Mawr, Dallas, Texas 75225
4415 Normandy, Dallas, Texas 75205
3615 Centenary
3836 Caruth, Dallas, Texas 75225
ARTICLE X
The names and street addresses of the incorporators are
NAME.
Thomas Max Nygaard
James B Gardner
Frank C Carter
oosOm
ADDRESS:
7022 Hunters Glen, Dallas, Texas 75205
3408 Caruth, Dallas, Texas 75225
3936 Marquette, Dallas, Texas 75225
-9-
Exhibit A
ARTICLES OF INCORPORATION
OF
TEXAS HIGHER EDUCATION AUTHORITY, INC.
Pursuant to Section 53.35(b), Texas Education Code, as amended (the "Act"),
we, the undersigned natural persons, acting on behalf of and as directed and ordered
by the City of University Park, Texas (the "City"), and acting on behalf of other
municipalities from time to time, as incorporators of a nonprofit corporation under
the Act, do hereby adopt the following Articles of Incorporation therefor-
ARTICLE I
The name of the corporation is TEXAS HIGHER EDUCATION AUTHORITY,
INC.
ARTICLE II
The Corporation is a nonprofit corporation created under the Act by order of
the governing body of the City pursuant to the Act.
ARTICLE III
The duration of the Corporation is perpetual, subject to dissolution as herein
provided.
ARTICLE IV
The Corporation is organized solely and exclusively for the purpose of aiding
nonprofit institutions of higher education located within the City and within other
municipalities within the State of Texas in providing educational facilities and
housing facilities and facilities which are incidental, subordinate or related thereto
or appropriate in connection therewith in accordance with and subject to the
provisions of the Act. All of such activity shall be done on behalf of the City as to
institutions located within its corporate limits, and on behalf of other municipalities
within the State or to institutions located within their respective corporate limits,
all as their duly constituted authority and instrumentality, respectively
The Corporation shall have and may exercise all powers granted under the
Act, except as such powers are limited by these Articles of Incorporation or by the
bylaws of the Corporation.
ARTICLE V
The Corporation shall have no members and is a nonstock corporation.
ARTICLE VI
The street address of the initial registered office of the Corporation is 3800
University Blvd., Dallas, Texas 75205, and the name of the initial registered agent
at such address is Leland D Nelson.
0080M
ARTICLE XI
On November 4, 1985, the governing body of the City duly adopted an
ordinance ordering the creation of the Corporation, approving the form of these
Articles of Incorporation, and authorizing the Corporation to act on its behalf and as
its duly constituted authority and instrumentality to further the public purposes
provided in the Act, in the ordinance and in these Articles of Incorporation.
ARTICLE XII
These Articles of Incorporation may at any time and from time to time be
amended by either of the following methods: (1) the members of the board of
directors of the Corporation may file with the governing body of the City a written
application seeking permission to amend these Articles of Incorporation, specifying
in such application the amendment proposed to be made, and if the governing body
finds and determines that it is advisable that the proposed amendment be made and
approves the form and substance of the amendment and authorizes the same to be
made, then the board of directors of the Corporation may amend these Articles of
Incorporation by adopting such amendment and delivering articles of amendment to
the Secretary of State, or (2) the governing body of the City may, in its sole
discretion, and at any time, adopt an amendment to these Articles of Incorporation
and direct the board of directors to amend the same whereupon the board of
directors shall amend the same by filing articles of amendment with the Secretary
of State.
ARTICLE XIII
The Corporation shall be a nonprofit corporation, and no part of its net
earnings remaining after payment of its expenses, bonds or other obligations shall
ever inure to the benefit of any individual, firm or corporation, except that in the
event sufficient provision has been made for the full payment of the expenses, bonds
and other obligations of the Corporation, then any net earnings of the Corporation
thereafter accruing and arising from activities within the corporate limits of the
City shall be paid to the City. Any net earnings of the Corporation thereafter
accruing and arising from activities within other municipalities shall be paid to the
appropriate municipalities, respectively. No part of the Corporation's activities
shall be carrying on propaganda, or otherwise attempting to influence legislation,
and it shall not participate or intervene in (including the publishing or distributing of
statements) any political campaign on behalf of or in opposition to any candidate for
public office.
ARTICLE Xlv
(a) - In addition to the power to amend these Articles of Incorporation, as
provided elsewhere herein, the governing body of the City may, in its sole
discretion, and at any time, niter or change the structure, organization, programs,
or activities of the Corporation or terininate and dissolve the Corporation, subject
only to any limitations provided by the respective constitutions and laws of the
State of Texas or of the United States prohibiting the impairment of contracts
entered into by the Corporation.
Oosox
-3-
(b) if the board of directors shall determine that the purposes for which
the corporation was formed have been substantially accomplished and that all
expenses, bonds and other obligations theretofore issued or incurred by the
Corporation have been fully paid or payment provided for, the members of the board
of directors shall, upon receipt of the approval of the governing body of the City,
thereupon dissolve the Corporation in the manner provided by law subject to the
same limitations provided in paragraph (a) of this Article XIV pertaining to
dissolution directed by the City
(c) If the Corporation ever should be dissolved, whether instituted by the
governing body of, the City or by the board of directors, all interests in any funds or
property of any kind, real, personal or mixed, shall be transferred and delivered to
the City, after satisfaction has been made of all debts and claims against the
Corporation.
(d) The initial bylaws of the Corporation and all amendments thereto,
substitutes therefor, and repeals thereof shall be subject to the approval of the
governing body of the City.
ARTICLE XV
No obligations issued by the Corporation shall constitute an obligation of the
City or other municipality or shall create any indebtedness or liability, or be a
special, general or moral obligation of the City or other municipality, and all
obligations issued by the Authority shall contain a statement to such effect.
IN WITNESS WHEREOF, we have hereunto set our hands this
1985
Incorporator
Incorporator
Incorporator
OOBDH
-4-
CITY MANAGER-CLERK'S CERTIFICATE
THE UNDERSIGNED, City Manager-Clerk of the City of University Park,
Texas, hereby certifies that pursuant to the specific provisions of Section 53 35(b),
Texas Education Code, as amended, the referenced Corporation was ordered created
by the Board of Commissioners, the governing body, of the City on the date stated
in Article XI of the above and foregoing Articles of Incorporation pursuant to the
ordinance therein described, that the Articles of Incorporation are those which were
approved by the ordinance, and that a true and correct copy of the ordinance is on
file among the permanent records of the Board of Commissioners and City
TO CERTIFY WHICH, witness my hand and the seal of the City this
November , 1985
City Manager-Clerk, City of University
Park, Texas
(SEAL)
oosox
STATE OF TEXAS
COUNTY OF DALLAS §
I, the undersigned, a Notary Public of the State of Texas, do hereby certify
that on this day of November, 1985, personally appeared before me Thomas
Max Nygaard who, being by me first duly sworn, declared that he is the person who
signed the foregoing document as an incorporator and that the statements therein
contained are true.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the date and
year above written.
Notary Public, State of Texas
My Commission Expires.
[SEAL]
STATE OF TEXAS §
§
COUNTY OF DALLAS §
I, the undersigned, a Notary Public of the State of Texas, do hereby certify
that on this day of November, 1985, personally appeared before me James
B Gardner who, being by me first duly sworn, declared that he is the person who
signed the foregoing document as an incorporator and that the statements therein
contained are true.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the date and
year above written.
Notary Public, State of Texas
My Commission Expires.
[SEAL]
0 0 a 0 H -6-
STATE OF TEXAS
COUNTY OF DALLAS §
I, the undersigned, a Notary Public of the State of Texas, do hereby certify
that on this day of November, 1985, personally appeared before me Frank C
Carter who, being by me first duly sworn, declared that he is the person who signed
the foregoing document as an incorporator and that the statements therein
contained are true
IN WITNESS WHEREOF, I have hereunto set my hand and seal the date and
year above written.
Notary Public, State of Texas
My Commission Expires:
(SEAL]
0080H
-7-
ARTICLES OF INCORPORATION
OF
TEXAS HIGHER EDUCATION AUTHORITY, INC.
Pursuant to Section 53.35(b), Texas Education Code, as amended (the "Act"),
we, the undersigned natural persons, acting on behalf of and as directed and ordered
by the City of University Park, Texas (the "City"), and acting on behalf of other
municipalities from time to time, as incorporators of a nonprofit corporation under
the Act, do hereby adopt the following Articles of Incorporation therefor-
ARTICLE I
INC.
The name of the corporation is TEXAS HIGHER EDUCATION AUTHORITY,
ARTICLE II
The Corporation is a nonprofit corporation created under the Act by order of
the governing body of the City pursuant to the Act.
ARTICLE III
The duration of the Corporation is perpetual, subject to dissolution as herein
provided.
ARTICLE IV
The Corporation is organized solely and exclusively for the purpose of aiding
nonprofit institutions of higher education located within the City and within other
municipalities within the State of Texas in providing educational facilities and
housing facilities and facilities which are incidental, subordinate or related thereto
or appropriate in connection therewith in accordance with and subject to the
provisions of the Act. All of such activity shall be done on behalf of the City as to
institutions located within its corporate limits, and on behalf of other municipalities
within the State or to institutions located within their respective corporate limits,
all as their duly constituted authority and instrumentality, respectively
The Corporation shall have and may exercise all powers granted under the
Act, except as such powers are limited by these Articles of Incorporation or by the
bylaws of the Corporation.
ARTICLE V
The Corporation shall have no members and is a nonstock corporation.
ARTICLE VI
The street address of the initial registered offive of ow Corporation is 3800
University Blvd , Dallas, Texas 75205, and the name of the initial registered agent
at such address is Leland D Nelson.
0 0a0H
ARTICLE VI
LOANS
Section 6.01. Terms and Conditions of Loans. The
Authority shall loan funds to Borrowers to finance or
refinance the cost of, or reimburse the cost of Facilities
and enter into Loan Agreements on the terms and conditions
and upon submission of the documents contained in this
Article VI and not otherwise.
Section 6.02. Restrictions on Program. The following
restrictions shall apply to Loans made by the Authority
hereunder:
(a) No Loan shall be made unless the Trustee
receives an opinion of Bond Counsel to the effect that
the Loan is authorized by the Indenture, the Articles of
Incorporation, Bylaws and any local regulation of the
Authority and the Act, and, based upon representations
made to the Bond Counsel, the making of the Loan will
not cause the interest on the Bonds to become subject to
federal income taxation.
(b) The Trustee shall not on behalf of the
Authority accept a Loan Agreement with a Borrower or
disburse Bond proceeds therefor unless the Trustee
receives a Bond Insurer Letter and the Borrower delivers
to the Trustee any Collateral Documents and other
security required by the Bond Insurer Letter which are
approved by the Bond Insurer.
Section 6 03 The Program Administrator In order to
further the Program, the Authority hereby authorizes and
directs the Program Administrator to conduct studies on an
ongoing basis to determine future Program Loan demand; and
file quarterly written reports with the Issuer specifying
(i) the Borrowers to whom Loans were made during the
preceding quarter and the amounts of such Loans; (ii) the
facilities or expenditures financed by each Loan during the
preceding quarter; (iii) the rates on the Bonds during the
preceding quarter and comparisons with the rates on other
means of financing available to finance the facilities and
expenditures financed by such Loan; (iv) the results of
ongoing studies concerning future Program Loan demand; and
(v) applications currently in process for such Loans and the
status of each application. The Authority directs the
Program Administrator to coordinate between the Bond Insurer
and each Borrower with respect to processing each Loan.
The Program Administrator and the Bond Counsel shall be
compensated for the services that they are required to
perform under this Indenture through the payment by the
-96-
ARTICLE VII
All powers of the Corporation shall be vested in a board of directors
consisting of not less than seven nor more than eleven directors, as may be fixed by
the bylaws of the Corporation, each of whom shall be appointed by the governing
body of the City. Each director shall serve for a term of two years or until his or
her successor is appointed by the governing body of the City. No officer or
employee of the City is eligible for appointment as a director. Directors are not
entitled to compensation for services but are entitled to reimbursement for
expenses incurred in performing such services. Any director may be removed from
office at any time, with or without cause, by written ordinance of the governing
body of the City. All vacancies, from whatever cause, shall be filled by the
governing body of the City.
ARTICLE VIII
All matters pertaining to the internal affairs of the Corporation shall be
governed by the bylaws of the Corporation, so long as such bylaws are not
inconsistent with these Articles of Incorporation or with the Act.
ARTICLE IX
The number of directors constituting the initial board of directors is seven.
The names and addresses of the initial directors are:
NAME:
Thomas Max Nygaard
James B. Gardner
Frank C. Carter
Alex Bul
Martin C Cude, Jr.
Trevor W. Rees-Jones
Ronald J Case
ADDRESS:
7022 Hunters Glen, Dallas, Texas 75205
3408 Caruth, Dallas, Texas 75225
3936 Marquette, Dallas, Texas 75225
3016 Bryn Mawr, Dallas, Texas 7522.5
4415 Normandy, Dallas, Texas 75205
3615 Centenary
3836 Caruth, Dallas, Texas 75225
ARTICLE X
The names grid street addresses of the incorporators are*
NAME.
Thomas Max Nygaard
James B Gardner
Frank C Carter
ADDRESS:
7022 Hunters Glen, Dallas, Texas 75205
3408 Caruth, Dallas, Texas 75225
3936 Marquette, Dallas, Texas 7.5225
OO8OH
(1) That this City hereby requests the Authority to act on its behalf and
as its duly constituted authority and instrumentality in making funds available under
the Program to finance educational facilities authorized by the Act for the Local
Institution, and this City hereby requests and approves the issuance of the Bonds by
the Authority and approves the inclusion therein of the amounts requested by the
Local Institution, and this City authorizes the use of such funds for the purposes of
the Local Institution and other institutions of higher education within this State
located within cities on whose behalf the Authority is acting in accordance with the
terms and requirements of the Program as developed, defined and from time to time
implemented by the Authority;
(2) That this City approves the Articles of Incorporation of the
Authority, attached hereto as Exhibit A, and adopts the terms thereof, except that
no amendment thereto shall be effective as to this City unless the amendment is
acceptable to this City;
(3) That this resolution constitutes an interlocal agreement between this
City and all other cities on whose behalf the Authority is created and is acting, and
the Authority is authorized to continue to implement the Program within this City
for the benefit of the Local Institution and any other institutions of higher education
located within this City on a year-to-year basis unless terminated as to this City by
its giving of notice to the Authority that from and after a date specified in the
notice no further activities of the Authority shall be conducted within the corporate
boundaries of this City;
(4) No obligation issued as created by the Authority shall ever create an
obligation of this City nor shall create any indebtedness or liability, or be a special,
general or moral obligation of this City, and all obligations issued by the Authority
shall contain a statement to such effect.
This Resolution shall take effect immediately from and after its adoption.
PASSED AND APPROVED this , 1985.
ATTEST.
Attesting Officer
U
[SEAL]
Presiding Officer
1 0326
Exhibit B
INDEMNIFICATION AGREEMENT
This Indemnification Agreement, dated as of April 1, 1986,
by and between the City of Fort Worth, Texas ( the "City") and
Shearson Lehman Brothers, Inc., E. F. Hutton & Company Inc. and
MBank Capital Markets (collectively, the "Underwriters")
W I T N E S S E T H:
WHEREAS, the City has been approached by Texas Wesleyan
College to authorize the Texas Higher Education Authority, Inc.
(the "Authority") to act on behalf of the City and loan moneys
to said College for eligible project costs; and
WHEREAS, on December 24, 1985, the Authority delivered its
Floating Rate Weekly Demand Educational Facilities Revenue
Bonds, Series 1985A and 1985B, aggregating $175,000,000 in
principal amount, to the Underwriters; and
WHEREAS, the Underwriters agreed to indemnify the Authority
and the City of University Park, Texas, from certain acts
relating to the sale and delivery of said Bonds; and
WHEREAS, as a condition for the City to authorize the
Authority to act on its behalf, it is the intent of the parties
to provide the City with similar rights of indemnification.
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
Section 1. That in consideration of the City authorizing
the Authority to loan moneys to said College from the proceeds
of said Bonds, the Underwriters jointly and severally agree to
indemnify the City in the manner herein provided.
Section 2. That the Underwriters hereby jointly and
severally release and shall defend and hold the City, its
officers and employees, and each of the members of its governing
body harmless from any tax, penalty, fine, cost, expense, loss,
damage, or other liability or claim (including attorneys' fees,
litigation and court costs, and other expenses of the defense
thereof and amounts paid in settlement or to discharge judg-
ments) incurred by or asserted against the City as a result of
any action or omission by the Authority, or any agent of the
Authority, to the extent attributable to the issuance of said
Bonds by the Authority and the loan to Texas Wesleyan College
from the proceeds of said Bonds, or as a result of any action of
omission of Texas Wesleyan College in the design, construction,
installation, equipping, furnishing, operation, use, occupancy,
insurance, maintenance, or ownership of any facilities financed
by said College by the aforementioned loan. The Underwriters
may, and if requested in writing by the City shall, undertake
the defense of any claim, action, or proceeding for the City,
and thereafter, the Underwriters shall not be liable to the City
for any legal or other expenses other than costs subsequently
incurred by the City at the request of the Underwriters in
connection with the defense thereof. The City shall give prompt
notice of any claim, action, or proceeding against it upon which
it may seek indemnity hereunder.
IN WITNESS WHEREOF, the City has executed this Agreement in
its corporate name with its corporate seal hereunto affixed and
attested and approved as to legality by its duly authorized
officers and the Underwriters have caused this Agreement to be
executed in their respective corporate names by their respective
duly authorized officers, all as of the date first written
above.
CITY OF FORT WORTH, TEXAS
BY:
City Manager
(SEAL)
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
SHEARSON LEHMAN BROTHERS, INC.
BY:
E. F. HUTTON & COMPANY INC.
BY:
MBANK CAPITAL MARKETS
BY: