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EDA Agenda Memo <br /> January 8, 1998 <br /> Page 6 <br /> The Finance Committee members present at this meeting were Jim <br /> Simpson, Tom McNair, and Bud Houlton. These members discussed <br /> the following issues prior to making a decision on a recommendation to <br /> the EDA: <br /> • non bankability of the business in its current financial <br /> condition <br /> • level of security/collateral to be provided to the EDA <br /> • being consistent with recommendations made on other loans <br /> • having the equipment appraised to show the EDA's proposed <br /> collateral. <br /> After discussion of these various issues the committee members agreed <br /> upon a recommendation to the EDA which is as follows: <br /> • that a $50,000 loan to Northstar Die Casting be approved at a <br /> prime interest rate and a five year term with the following <br /> conditions: <br /> 0 principal and interest due the EDA would be due upon <br /> sale of Northstar Die Casting <br /> 0 personal guarantees from Larry Lawson (20% owner) <br /> and,Steve Whiting(80% owner) <br /> • 0 personal financial statements are to be reviewed by <br /> the Finance Committee prior to acceptance of personal <br /> guarantees. <br /> Two members of the Finance Committee who were unable to be <br /> present at the meeting indicated verbal support of requiring personal <br /> guarantees of the owners of Northstar Die Casting. <br /> At the time of writing this memo, staff had not discussed the details of <br /> the Finance Committee's recommendation with Northstar.- Staff will <br /> provide this update to the EDA at its meeting on Monday evening. <br /> 9. Prospect/Activity Reports <br /> These reports will be provided to the EDA at its meeting on Monday. <br />