Ordinance No. 9,533ORDINANCE NO. 9533
• AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE
AND THE CITY CLERK TO ATTEST TO A MODIFICATION AGREEMENT
WITH SOUTHWEST BANK OF TEXAS, N.A., TO ESTABLISH THE FLOOR
RATE OF INTEREST PER ANNUM AT 5' /a% FOR THE FINANCING OF THE
BAYLAND ISLAND FACILITIES; AND PROVIDING FOR AN EFFECTIVE
DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and
directs the Mayor to execute and the City Clerk to attest to a Modification Agreement with
Southwest Bank of Texas, N.A., to establish the floor rate of interest per annum at 53/4% for the
financing of the Bayland Island facilities. A copy of said agreement is attached hereto as Exhibit
"A" and is incorporated herein for all intents and purposes.
Section 2: That the City Council of the City of Baytown authorizes payment to Reid,
Strickland & Gillette, L.L.P., in the amount of TWO HUNDRED FIFTY AND NO /100 DOLLARS
($250.00) for attorney's fees in connection with the preparation of loan documents referenced in Section 1
hereof.
Section 3: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 13'' day of March, 2003.
PETE C. ALFARO, Mayor
ATTEST:
G Y W , MITI; City Clerk
APPROVED AS TO FORM:
KAREN HORNER, Assistant City Attorney
0 FAKaren\Filcs\City Council\ Ordinances \PromissoryNoteFloorOrdinance.doc
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MODIFICATION AGREEMENT
THE STATE OF TEXAS X
X
COUNTY OF HARRIS X
WHEREAS. heretofore, to -wit, on September 14, 1995, The City of Baytown, Texas, A
Municipal Corporation, hereinafter referred to as "City", executed one certain promissory note
described as follows, to -wit:
One Promissory Note, dated September 14, 1995. for the principal sum of $1,800.000.00,
bearing interest and being payable to the order of CITIZENS BANK AND TRUST COMPANY
Of BAYTOWN. TEXAS as therein provided; said note carrying the usual and customary
attorneys fee and accelerating maturity clauses;
WHEREAS, payment ofsaid Promissory Note is secured by one or more security
agreements and Deed of Trust of even date with said Ptornissory Note. securing payment of said
Promissory Note, covering property of the city described in said agreement.
WHEREAS, said note hereinabove described has beretofore been modified by Loan
Modification of Promissory Note dated March 29. 1996.
WHEREAS. the CITY and SOUTHWEST BANK OF TEXAS, N.A., successor in
interest to CITIZENS BANK AND TRUST COMPANY OF BAYTOWN. TEXAS. by reason of
acquisition and merger, the owner and holder of said note, hereinafter referred to as "Sank ", have
mutually agreed to modify the promissory note so that the that the maximum rate of interest
should be no more than 8% per annum. and that the floor rate of interest on the outstanding
balance of said Promissory Note be reduced to the rate of 5 '' /,% per annum:
WOW, THEREFORE. KNOW ALL MEN BY THESE PRESENTS;
That the CITY and the BANK do hereby mutually covenant and agree that not
withstanding a rate of interest of calculated under the terms of said Promissory Note, the rate of
interest charged on the balance of the Promissory Note during the first ten (10) years of the tears
of the said Promissory Note shall not be more than 8% per annum nor less than 5 ' /.% per annum.
The said CITY does hereby ratify and confirm the validity of its indebtedness to
SOUTHWEST BANK OF TEXAS. N.A. herein described, and he does hereby promise to pay to
EXHIBIT A
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the order of SOUTHWEST BANK OF TEXAS. N.A.. of Harris County, Texas, the unpaid
balance of said Promissory Note on the terms promised in such Promissory Note as modified
hereby.
EXECUTED, this the 20th day of February. 2003.
Attest. Gary W. Smith
CITY OF BAYTOWN. A MUNICIPAL CORPORATION
BY:
PETE ALFARO, MAYOR
SOUTHWEST BANK OF TEXAS, N.A.
By:
Name:
Title:
THE STATE OF TEXAS X
COUNTY OF HARRIS X
BEFORE ME, the undersigned notary public. on this day personally appeared PETE
ALFARO, MAYOR OF THE CITY OF BAYTOWN, A MUNiCiPAL CORPORATION. known
to me /proved to me through driver's license to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GNEN UNDER MY HAND AND SEAL OF OFFICE, this day of February,
2003.
NOTARY PUBLIC, STATE OF TEXAS
THE STATE OF TEXAS X
COUNTY OF HARRIS X
BEFORE ME, the undersigned notary public, on this day personally appeared
of SOUTHWEST BANK OF TEXAS, N.A., known to me/proved to
me through driver's license to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that he executed the same for the purposes and consideration
therein expressed, on behalf of said Bank.
2003.
9dx
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of February.
NOTARY PUBLIC, STATE OF TEXAS
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