RES 14-01 - Laserfiche WebLink

Home Browse Search

RESOLUTION NO. 14-0I • A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHO RITY OF THE CITY OF ELK RIVER, COUNTY OF SHERBURNE, STATE OF MINNESOTA, APPROVING SECURITY INTEREST SUBORDINATION AGREEMENT AND MORTGAGE SUBORDINATION AGREEMENT Section 1. Recitals. 1.01 The Board of Commissioners (the "Board") of the Economic Development Authority of the City of Elk River (the "EDA") has heretofore provided a Microloan in the amount of $100,000 and a Forgivable Loan Program loan in the amount of $200,000 to Preferred Powder Coating, LLC, a Minnesota limited liability company, and Preferred Real Estate Holding, LLC, a Minnesota limited liability company (both collectively and individually referred to as "Debtor") . which were secured by certain mortgages and security agreements on a subordinate basis to a loan from First National Bank of Elk River (the "Bank") in the original principal amount of$5,093,000. 1.02 The Debtor has requested an additional loan from the Bank in the amount of $386,000 and the Bank has required, as a condition to making such additional loan, that the Debtor obtain from the EDA a Security Interest Subordination Agreement (the "Security Interest Agreement") in favor of the Bank and a Subordination Agreement in favor of the Bank (the "Subordination Agreement" and together with the Security Interest Agreement the "Agreements"), providing for the subordination of the EDA's mortgages and security agreements to the Bank's • mortgages and security agreements with respect to the additional financing, copies of which are on file with the Executive Director. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Elk River (the"EDA") as follows: Section 2. Approval of Agreements. 2.01. The Agreements as presented to the EDA are hereby in all respects approved, in substantially the forms submitted, together with any related documents necessary in connection therewith, and the President and Executive Director are hereby authorized and directed to execute the Agreements on behalf of the EDA and to carry out, on behalf of the EDA, the EDA's obligations thereunder. 2.02. The approval hereby given to the Agreements includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the President and Executive Director prior to executing said documents; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the President and Executive Director shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of said officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of • the Board as,in the opinion of the City Attorney,may act in their behalf. 443799v1 JSB EL185-22