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109 RESOLUTION 1985-l07R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS APPROVING THE AMENDMENT O:f THE ARTICLES OF INCORPORATION AND BYLAWS OF THE CENTRAL TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING ¡rHE ISSUANCE OF ONE OR MORE SERIES OF BONDS AS WELL AS INCURRING OBLIGATIONS UNDER A LINE OF CREDIT; AUTHORIZING AND DIRECTING THE MAYOR OR MAYOR PRO TEMPORE TO ASSIST THE AUTHORITY IN THE PREPARATION AND EXECUTION OF A REQUEST FOR AN ALLOCATION OF THE STATE "CAP" UNDER SECTION 103(n) OF THE INTERNAL REVENUE CODE AND THE ASSIGNMENT TO AUTHORITY OF ANY ALLOCATION MADE OR TO BE MADE TO CITY IN THE CALENDAR YEAR SUCH BONDS ARE ISSUED AND DELIVERED 7 MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND DECLARING AN EFFEccr IVE DATE. WHEREAS, there was established a non-profit corporation pursuant to the Texas Non-Profit Corporation Act, for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student 10ans7 that such has been accomplished, the corporation being known as the "Central Texas Higher Education Authority, Inc. " (the "Authority"); and, WHEREAS, the Authority has proceeded in the development of a plan of doing business and has issued bonds for the aforesaid purposes, but additional funds are needed to continue the program and it is now appropriate for this governing body to approve the issuance of additional bonds for such purpose and the obtaining of a line of credit; and, WHEREAS, the governing body of the City of San Marcos, Texas has been advised by the Authority that such Authority, upon approval thereof by the City Council of said City, proposes to issue revenue bonds in order to provide funds for the acquisition of student loans; that such bonds would be initially issued as one or more series of Bonds (collectively, the "Bonds") in the aggregate principal amount of up to $75,000,000 and that such Bonds would be payable from and secured by a pledge of revenues derived from or by reason of the ownership of student loan notes (including loans made to parents of students) and investment income after deduction of such expenses for operating the loan program as may be specified by the bond resolution or trust indenture authorizing or securing such Bonds and the payment thereof; and, WHE REAS, the Bonds (up to the aggregate principal amount of $75,000,000) are issued to obtain funds with which to purchase Student Loan Notes which are guaranteed under the provisions of the Higher Education Act of 1965, as amended, to establish certain reserves and for the purpose of paying certain expenses; and, WHEREAS, it appears that the Authority may need to enter into a line of credit agreement whereby an additional $75,000,000 would be available, as needed, to supplement the proceeds of the Bond issue, the proceeds from draws under the line of credit to be available only for the purpose of acquiring additional student loans or parent 10ans7 now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: PART 1. That the amendment of the Articles of Incorporation and Bylaws of the Authority to permit the acquisition of parent loans is hereby approved.