RESOLUTION NO. RS2017-511
A resolution authorizing interim financing for Nashville Metropolitan Transit Authority.
WHEREAS, The Metropolitan Government of Nashville and Davidson County, by and through the Metropolitan Transit Authority (the “MTA”) established by its Charter, operates essential transportation services for the Nashville Metro area and its surrounding communities; and
WHEREAS, a significant portion of MTA’s operational funding is provided by grant agreements with federal agencies (the “Agency Grants”); and
WHEREAS, historically there have been delays between the approval of the Agency Grants and the MTA’s receipt of the funding; and
WHEREAS, it is in the best interest of the citizens of The Metropolitan Government of Nashville and Davidson County that MTA be able to meet its working capital and other general financial obligations while it awaits the receipt of funds from the Agency Grants; and
WHEREAS, the Office of the Comptroller of the Treasury has requested Metropolitan Council action when MTA obtains interim financing while it awaits receipt of the Agency Grants.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY AS FOLLOWS THAT:
Section 1. For the purpose of obtaining adequate funding for its continued operation while awaiting the receipt of funds from the Agency Grants, MTA is hereby authorized to borrow funds in a principal amount not to exceed $11.2 million dollars at a rate of interest and such other terms to be determined in the discretion of MTA in accordance with its policies and procedures (the evidence of such borrowing referred to collectively as the “Note”).
Section 2. The Note shall mature not later than 364 days after the closing thereof.
Section 3. The principal of and interest on the amount of the Note may be secured by the pledge of the MTA’s business assets, excluding real property but including accounts, accounts receivable, and contract rights.
Section 4. The debt secured by the Note shall not pledge the credit of Metropolitan Government of Nashville and Davidson County and shall be “without recourse” such that The Metropolitan Government of Nashville and Davidson County is not obligated with respect to the debt or the Note.
Section 5. MTA may take such other steps as are necessary to effectuate the Note and the purposes of this Resolution.
Section 6. MTA shall attach a copy of this Resolution to its Report on Debt Obligation provided to the Tennessee State Comptroller’s Office pursuant to Tenn. Code Ann. Sec. 9-21-151.
Section 7. This Resolution shall take effect after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: John Cooper, Jason Potts
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|Referred to:||Budget & Finance Committee
Traffic, Parking & Transportation Committee
|Introduced:||January 3, 2017|
|Adopted:||January 3, 2017|
|Approved:||January 4, 2017|
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