HomeMy WebLinkAboutResolution #1111
RESOLUTION N0. 1111
A RESOLUTION RELATING TO RESOLUTION NUMBER 1093 WHICH APPROVED
AN AGREEMENT BETWEEN THE CITY OF CANTON ArID FULTON COUNTY PELLET-
ING, AND WHICH DIRECTED THE MAYOR AND CITY CLERK TO EXECUTE AND
DELIVER SAID LOAN AGREEMENT OP1 BEHALF OF THE CITY OF CANTON
WHEREAS, the Canton City Council has previously passed
Resolution Number 1093 which approved a certain Loan Agreement
between the City of Canton and Fulton County Pelleting; and,
WHEREAS, said Loan Agreement was executed by the City of
Canton and bears date of July 5, 1985; and,
WHEREAS, by memorandum dated July 5, 1985, Fulton County
Pelleting was requested to provide certain necessary infor-
mation and to make certain necessary showings as in said
memorandum set forth, a copy of which is attached to this
Resolution; and,
WHEREAS, subsequent to the execution of said Loan Agreement,
the ability of Fulton County Pelleting to give the required
collateral has been put into serious doubt;, and,
6VHEREAS, the Canton City Council had determined '.that it is
not in the best interest of the City of Canton to wait in-
definitely for the required showings, or, to continue to
obligate its loan funds for an indefinite period of time.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CANTON, Fulton County, Illinois as follows:
1. That the loan contemplated by the aforesaid Loan
Agreement is presently incapable of being consumated by
reason of the prospective borrower's failure or inability
to make the required proofs and showings.
2. That said contemplated loan is hereby placed on
hold status and the loan funds shall be released to the
general loan fund unless the borrower makes the required
showings and proofs within 15 days of the date of passage
of this Resolution.
3. That the City staff is hereby directed to take no
further action in implementing the contemplated loan until
the required showings and proofs have been made by borrower.
4. That the City Clerk shall, immediately upon the passage
of this Resolution, mail a certified copy hereof to borrower
at its address as set forth at numerical paragraph 12 of the
Loan Agreement.
5. 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 regular meeting this 17th day of
September 1985 upon a roll call vote as
follows:
AYES: Aldermen Chapman, May, Bohler, Workman, Sarff, Falcone,
Zilly, Kovachevich.
NAY5: None,
ABSENT: None.
APPROVED:
onald E. Edwards, Mayor.
ATTEST:
~'
an i s, City Clerk.
-2-
CITY OF CANTON
210 East Chestnut, Canton, Illinois 61520 - Telephone 309 - 647-0020
Nancy S. Whites, City perk Donald E. Edwards, Mayor James H. Malmpren, Cny Attorney
Patricia A. Wriflht, City Treasurer Clifford L. Sa6aser, City fng,neer
FROM: City of Canton, James H. Malmgren
SUBJECT: $99,999.00 HHS/OCS Loan to Fulton County Pelleting
TO: Fulton County Pelleting
TI•:RU: Gerald B. Martin
DATE: July 5, 1985
`I'wo original Loan Agreements are herewith provided to
Fulton County Pelleting for original executions on page 13
of each Loan Agreement by authorized officers of each of
heritage Credit Finance Corporation, and, Prime Technology,
Inc. One fully executed original is to be returned to the
City of Canton; the second is for Fulton County Felleting's
files. Please do not make any changes to the Loan Agreements
or attachments relating thereto.
Promissory Notes and Real Estate Mortgages will be pre-
pared and presented for execution at closing. Prior to the
date of closing, Borrower needs to provide Lender with the
following information: A complete and accurate legal desc-
ription for each parcel of real estate to be pledged as
security - this description needs to be sufficient for use
on a deed of conveyance; proof of fee simple title to each
parcel in one or the other, or, both, of the borrowers -
proof by way of a commitment to insure ;nortgayee's title
in tr,e minimal amount of $133,000.00 issued by a nationally
recognized title company acceptable to Lender is sufficient.
Suggest Chicago Title & Trust may be the best choice.
It is also my recollection that the City has not received
two (2) turn down letters from area banks stating that they
will not make the commercial loan; these are needed to satisfy
Federal requirements.
As you are aware, Director Dorgan is presently on vacation
and is expected to return on or about July 10, 1985. He will
then be able to advise of any further requirements needing to
be met which I may not now be fa„iliar with.
JHA'I/bm
CC: File; Dir. Dorgan;
Mayor Edwards
Enc 1: Loan Agreements (2 )