Number
R_12893
Version
Original
Reference
Sponsor
The Chair
Title
Resolution authorizing the Housing Authority of the City of Milwaukee to provide indemnification and/or guaranty for Travaux, Inc. to secure payment and performance bonds
As part of the loan agreement, WHEDA is requiring a Payment and Performance bond from the General Contractor. The surety company is not comfortable yet on Travaux being a new operating entity, hence, requiring an indemnity from its parent company.
Analysis
Body
WHEREAS, pursuant to Articles of Incorporation filed with the State of Wisconsin on May 14, 2013 (hereinafter ‘Articles”), a non-stock corporation named Traveaux, Inc. (since renamed Travaux, Inc.) was created; and
WHEREAS, the Housing Authority of the City of Milwaukee (HACM) is the sole member of the corporation, with rights as provided in the Articles and Bylaws, and in Chapter 181 of the Wisconsin Statutes; and
WHEREAS, it is the intention of the HACM for Travaux Inc. to pursue development and construction projects;
WHEREAS, the HACM recognizes that Travaux Inc., being a newly organized entity, does not have the history, documented experience and adequate capital needed by potential insurance carriers and surety companies to exercise due diligence to underwrite insurance products, payment and performance bonds and other related surety products which may be required of Travaux in its pursuit of development and construction projects;
NOW, THEREFORE, BE IT RESOLVED, that the HACM, as sole member and owner of Travaux, Inc., hereby authorizes the HACM to provide indemnity and/or guaranty to Travaux Inc., as needed, to secure payment and performance bonds needed to pursue development and construction projects;
FURTHER RESOLVED, that the Secretary-Executive Director of HACM, or his designee, is hereby authorized to perform any and all such acts, including execution of any and all documents and certificates, deemed necessary or advisable, to carry o...
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