HomeMy WebLinkAbout2004-10• RESOLUTION 2004-10
MORAL OBLIGATION RESOLUTION FOR GLOBAL CONTACT SERVICES, INC.
LOAN FROM THE VIRGINIA SMALL BUSINESS FINANCING AUTHORITY
WHEREAS, the Town Council of the Town of Pulaski, Virginia has considered the benefits to
accrue to the Town of Pulaski by supporting a loan from the Virginia Small Business Financing Authority,
an agency of the Commonwealth of Virginia, to Global Contact Services, Inc.; and
WHEREAS, Global Contact Services, Inc. has recently located in the Town of Pulaski and has
provided employment and tax revenue for the Town of Pulaski and WHEREAS the probability exists that
further job creation may be possible with the aforesaid loan; and
WHEREAS, the Town Council of the Town of Pulaski has determined that support in the amount
of $125,000 backed by a moral obligation resolution is consistent with the best interest and the general
welfare of its citizens; and
NOW, THEREFORE, it is HEREBY RESOLVED by the Town Council of the Town of Pulaski
that the Town agrees to be responsible for repayment to the Virginia Small Business Financing Authority,
backed by the Town's Moral Obligation to do so, in an amount not to exceed $125,000 of the residual loan
balance for a loan to Global Contact Services, Inc. from the Virginia Small Business Financing Authority
in the amount of $272,500 for a period of five (5) years. Repayment of any residual balance by the Town
• of Pulaski shall be made to the Virginia Small Business Financing Authority only after all reasonable
efforts have been exhausted to enforce the terms of its loan agreement with Global Contact Services, Inc.
and formal written request has been made to the Town of Pulaski by said agency and further that nothing
in this resolution shall be deemed to be a pledge of the faith and credit of the taxing power of the Town
with respect to any sums which may become payable hereunder.
This Resolution is effective immediately upon its passage, this 22nd day of March, 2004 by the
duly recorded vote of the Town Council of the Town of Pulaski as follows:
Bettye H. Steger
John T. Bolen
Pauline G. Mitchell
Jeffrey S. Worrell
- Aye Kenneth M. Fleenor -Aye
- Aye James M. Neblett, Jr. -Absent
- Aye E. G. Black, Jr. -Aye
- Aye
Town of Pulaski, Virginia
By: ~~~~an.l%~.s~
Charles W. Stewart, Jr., Mayor
ATTESTED:
•
~~ ~ .
Patricia Cruise, Clerk of Council