A RESOLUTION AUTHORIZING AN AMENDMENT TO AND EXTENSION OF THE LOAN SECURED BY A MORTGAGE ON THE OLD WATER AND SEWER BUILDING LOCATED ON FIRST STREET.
WHEREAS, a first mortgage was placed on the land and improvements owned by the City on First Street commonly referred to as the old Water and Sewer Building in order to secure a portion of the borrowed funds used to acquire the current City administration building.
WHEREAS, such funds having a current principal balance of $34, 750.82 and a payoff as of 09-29-2009 of $35,009.57 were going to be paid off from the proceeds of the sale of one or more pieces of City property which was listed for sale at about that time.
WHEREAS, the aforesaid loan was for twelve months and matured on 09-15-2009, same needs to be amended and extended since payoff is impractical at this time.
BE IT RESOLVED BY THE CITY COUNCIL OF ELKINS, ARKANSAS, That:
Section 1: The promissory note issued by the City in connection with a first mortgage on the Water and Sewer building/land on First Street should be amended and extended for a period of 36 months with Arvest Bank and Trust.
Section 2: That the Mayor and Recorder-Treasurer are hereby authorized and directed to execute such documents as are necessary or required by Arvest to amend and extend the existing loan with the goal of keeping the payments thereon within~ percent (/0%) of the previous payment amount.
Section 3: That such fees or administrative expenses associated with the aforesaid amendment/extension of the loan and first mortgage shall be paid from the general revenues of the City upon presentation of a statement therefor by Arvest.
PASSED AND APPROVED this 1st day of October, 2009.