HomeMy WebLinkAboutResolution #1049RESOLUTION NO. 1049
A RESOLUTION ESTABLISHING POLICY GUIDELINES FOR THE SECURING OF
LOAN FLTI~TDS TO BE DISBURSED BY THE CITY OF CANTON FROM THE DEPART-
MENT OF HEALTH AND HUMAN SERVICES/OFFICE OF COMMUNITY SERVICES
$1,000,000.00 LOAN FUND
WHEREAS, the City of Canton has been made the recipient of a
$1,000,000.00 loan fund from the Department of Health and Human
Services/Office of Community Services (hereinafter "HHS/OCS")for
relending to developers in the City of Canton; and,
WHEREAS, the City of Canton has now been directed by HHS/OCS to
establish policy guidelines with respect to the security interest
to be pledged to the City of Canton to guarantee repayment of any
such loans.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CANTON, Fulton County, Illinois as follows:
1. That the Canton City Council hereby determines and establishes
the following policy guidelines with respect to the security to be
pledged to the City of Canton by its borrowers with respect to all
monies to be loaned by the City of Canton from its $1,000,000.00
HHS/OCS Loan Fund:
a. That no loan shall be made which has pledged in its re-
payment a good and sufficient first security interest in real property
and/or personal property (to include choses in action and any combinat-
ion of the foregoing) which totals less than the aggregate principal
amount due the City of Canton by its borrower.
b. That if other than a good and sufficient first security
interest in said aggregate principal amount is to be pledged, a
combination of any number of first security interests and inferior
interests acceptable to the City of Canton in an amount not less
than 133 of the aggregate principal amount due the City of Canton
may be pledged if such pledge:
(1) In the case of a corporate borrower, contains the
pledge of a first security interest in all corporate stock out-
standing at the time the loan is made and of X11 ~orpbratesto~k
which may be outstanding at all times during the term of the loan,
or, until full payment is made; or,
(2) In the case of a loan to an individual, a partnership,
association, or other similar entity, contains the individual personal
guarantee of the borrower, to include the personal guarantees, as
applicable, of all partners, members of the association, and other
parties in interest, in an aggregate amount not less than the total
principal amount due the City of Canton.
2. That this Resolution shall be in full force and effect
immediately upon its passage by the City Council of the City of
Canton, Fulton County, Illinois and approval by the Mayor thereof.
PASSED by the City Council of the City of Canton, Fulton County,
Illinois at a special meeting this 13th day of September, 1984
upon a roll call vote as follows:
AYES: Aldermen Kovachevich, Hammond, Savi3:1, Sarff, Workman,
Carl, Ma.y, Horr,
NAYS: None,
ABSENT: None,
APPROVED:
yam=~~(' ~~ ~~~~.-~-J~Z
Donald E. ,
Edwards, Mayor.
ATTEST:
~'
an Whi s, City Clerk.
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