A RESOLUTION AUTHORIZING EXECUTION OF A DEBT MODIFICATION AGREEMENT TO EXTEND 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 of09-29-2009 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 extended.
WHEREAS, Resolution 2009-26 was passed on 10-01-2009.
BE IT RESOLVED BY THE CITY COUNCIL OF ELKINS, ARKANSAS, That:
Section 1: In response to resolution 2009-26 Arvest Bank has prepared a Debt Modification Agreement to extend the debt in the current amount of $34,750.82 principal and accrued interest which debt is secured by a mortgage on the old water and sewer building at 111 Walker Street in the City.
Section 2: That the Mayor and Recorder-Treasurer are hereby authorized and directed to execute the Debt Modification Agreement as attached hereto along with such other documents as are necessary or required by Arvest to extend the existing loan. As soon as funds become available from the sale of the property at 111 Walker Street they shall be applied towards payment of this debt.
Section 3: That such fees or administrative expenses associated with the aforesaid amendment/extension of the loan and first mo1igage shall be paid from the general revenues of the City upon presentation of a statement therefor by Arvest.
PASSED AND APPROVED this 25thd ay of Ocotober, 2009.
- RESOLUTION 2009-28 (15 Downloads)