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6.5 Agr IRB Lease Assignment CITY OF SALINA REQUEST FOR COMMI SS ION ACTION DATE TIME 2/23/1987 4:00 P.M. AGENDA SECTION: Consent ORIGINATING DEPARTMENT: APPROVED FOR NO. 6 City Attorney AGENDA: 1 TEM ..... NO. § Greg Bengtson BY: LO B BY: Resolution Number 87-3881 - authorizing the Mayor to execute a consent to an assignment by Research Chemical Company to McShares, Inc. of a certain lease dated July 1, 1977, by and between the City of Salina, Kansas, and Research Chemical Company. By Ordinance Number 8575 the City of Salina issued $1,000,000.00 Industrial Revenue Bonds for Research Chemical Company, $450,000.00 of which remains outstanding and unpaid. All of the outstanding "bonds are held by First National Bank and Trust Company and Bank IV Salina, NA, and both of the bond holders have consented to the assignment. Based on the consent, all of the outstanding bonds should avoid any obligation or liability on the part of the city for consenting to the assignment as required by the terms of the revenue bond lease. COMMISSION ACTION MOTION BY SECOND BY TO: .......... FIRST NATIONAL BANK ^un TRUST COMPANY OF SALINA A ~R~/;C~ COL~FA~Y: ~0~ ~ ~AN'FA ~E / ~C ~©X ~0~3 / SAL~A K~ 67~02 / (9!3) 827-5564 / MEMBER FDIC TRUST DEPARTMENT AND ASSET MANAGEMENT DIVISION February 17,1987 -- RECEIVED Board of City Commissioners City of Salina City-County Building FEB 300 West Ash P. O. Box 736 CIT~ MANAGER'S OFFICE Salina, Kansas 67402-0736 Re: Salina, Kansas, Research Chemical Company Industrial Revenue Bonds of 1977 Dear Gentlemen and Mrs. Soderberg: First National Bank and Trust Co. of Salina, Kansas, is the owner and holder of Salina, Kansas, Research Chemical Company Revenue Bonds of 1977, Bond Nos. 121 through 200, inclusive, in the aggregate unpaid principal amount of $400,000.00, which were issued pursuant to City of Salina Ordinance No. 8575, adopted on July 18, 1977. Research Chemical Company has requested this bank's written consent to its assignment to McShares, Inc., a Kansas Corporation with its registered office at Roeland Park, Kansas, of all of the right, title and interest of Research Chemical Company in and to that certain revenue bond Lease dated July 1, 1977, by and between the City of Salina, Kansas, as Lessor, and Research Chemical Company, as Lessee. Research Chemical Company has provided us with an explanation of the reasons for its request and financial and other in- formation concerning the proposed assignee, McShares, Inc. We understand that while Research Chemical Company will not be released or discharged from its duties and obligations as Lessee under the terms of the Lease, it has been merged into McShares, Inc. and will no longer be in a position to dis- charge any of the duties or obligations of the Lessee under the terms of the Lease. Based upon the foregoing, First National Bank and Trust Co., of Salina, Kansas, does hereby consent to the assignment by Research Chemical Company to McShares, Inc., a Kansas corporation, of all of the right, title and interest of Research Chemical Company in and to that certain revenue bond Lease dated July 1, 1977, by and between the City of Salina, Kansas, as Lessor, and Research Chemical Company, as Lessee. Very truly y~urs, William J. ,' Jr. Sr. Vice President and Trust Officer WB:kj cc: W. Dean Owens Hampton, Royce, Engleman & Nelson P.O. Box 1247 Salina, Kansas 67402-1247 BANK IX,', Salina 138 North Santa Fe Post Off'ice Box 860 Salina, Kansas 67402-0860 Telephone 913-825-7221 --- ' RECEIVED FEB 1 9 1987 CITY MAN/iGEE'S OFFICE · February 17, 1987 BANI~I~ Board of City Commissioners City of Salina City-County Building 300 West Ash P.O. Box 736 Salina, Kansas 67402-0736 Re: Salina, Kansas, Research Chemical Company Industrial Revenue Bonds of 1977 Dear Gentlemen and Mrs. Soderberg: BANK IV Salina, N.A., of Salina, Kansas, is the owner and holder of Salina, Kansas, Research Chemical Company Revenue Bonds of 1977, Bonds Nos. 111 through 120, inclusive, in the aggregate unpaid principal amount of $50,000.00, which were issued pursuant to City of Salina Ordinance No. 8575, adopted on July 18, 1977. Research Chemical Company has requested this bank's written consent to its assignment to McShares, Inc., a Kansas corporation with its registered office at Roeland Park, Kansas, of all of the right, title and interest of Research Chemical Company in'and to that certain revenue bond Lease dated July l, 1977, by and between the City of Salina, Kansas, as Lessor, and Research Chemical Company, as Lessee. Research Chemical Company has provided us with an explanation of the~ reasons for its request and financial and other information concerning the proposed assignee, M¢Shares, Inc. We understand that while Research Chemical Company will not be released or discharged from its duties and obligations as Lessee under the terms of the Lease, it has been merged into M¢Shares, Inc. and will no longer be in a position to discharge any of the duties or obligations of the Lessee under the terms of the Lease. Based upon the foregoing, BANK IV Salina, N.A., of Salina, Kansas, does hereby consent to the assignment by Research Chemical Company to M¢Shares, Inc., a Kansas corporation, of all of the right, title and interest of Research Chemical Company in and to that certain revenue bond Lease dated July 1, 1977, by and between the City of Salina, Kansas, as Lessor, and Research Chemical Company, as Lessee. Sincerely,