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<br />. <br /> <br />. <br /> <br />. <br /> <br />RESOLUTION 87 - 26 <br /> <br />A RESOLUTION FOR THE CITY OF ELK RIVER <br /> <br />A RESOLUTION AUTHORIZING SUBSTITUTION OF LENDER <br />FOR THE ROMA TOOL GRANT <br /> <br />WHEREAS, the City of Elk River (City) received an economic recovery grant <br />(Grant) from the State of Minnesota. subject to the terms of a Grant <br />Agreement by and between the State of Minnesota. acting by and <br />through the Department of Energy and Economic Development and the <br />City dated February 20. 1986; and <br /> <br />WHEREAS, the City loaned such Grant proceeds to Roma Tool & Plastics. Inc. <br />(Roma) and secured such loan with a Security Agreement by and <br />between the City and Roma dated March 19. 1986 (Security Agreement); <br />and <br /> <br />WHEREAS, Section 1.2 of the Security Agreement provides that the City's <br />interest will be subordinate to the security interest of Congress <br />Financial Corporation (Congress) which has provided f~nancing for <br />working capital and equipment (Working Capital and Equipment Loan) <br />and that the City will continue to subordinate its interest in the <br />event Roma refinances such Working Capital and Equipment Loan with <br />another lender; and <br /> <br />WHEREAS, Roma has negotiated a refinancing of the Working Capital and <br />Equipment Loan with ITT Commercial Finance Corp.. 100 Walnut Avenue. <br />Clark. New Jersey 07066 (ITT); and <br /> <br />WHEREAS, ITT requires first position on all equipment and machinery held by <br />Roma as collateral before it will provide such financing. <br /> <br />NOW. THEREFORE. BE IT RESOLVED by the City Council of the City of Elk River <br />that the City hereby agrees to amend the Security Agreement to <br />substitute ITT Commercial Finance Corp. for Congress Financial <br />Corporation so that the City's security interest in the Collateral <br />(as defined in the Security Agreement) will be subordinate to the <br />security interest of ITT; and that the Mayor and City Administrator <br />are hereby authorized to execute all documentation required to <br />accomplish such refinancing; and that this application be sent to <br />Minnesota Department of Energy and Economic Development for final <br />approval. <br /> <br />Passed and adopted by the City Council of the City of Elk River. this 1st day <br />of June. 1987. <br /> <br />c2i:db C ~1 <br /> <br />Estelle E. Gunkel. Mayor <br /> <br />ATTEST: <br /> <br />~rtd Z< J;(~ <br /> <br />Patrick D. Klaers. C1ty Administrator <br />