HomeMy WebLinkAbout94-07
RESOLUTION NO. 94 - ~
RESOLUTION AUTHORIZING THE EXECUTION OF A SUBORDINATION
AGREEMENT AND OTHER DOCUMENTS IN REFERENCE TO MAGNOX
PULASHI INCORPORATED -REFUNDING BONDS
WHEREAS, in 1986 the Town of Pulaski participated in an industrial
development project wherein the Town of Pulaski and the Pulaski County Industrial
Development Authority hold deeds of trust on certain property of Magnox Pulaski
Incorporated which are subordinate to a lien of deed of trust securing Sovran Bank, N.A.
for the repayment of certain industrial development revenue bonds issued by the Pulaski
County Industrial Development Authority in the original amount of $3,152,000 (the
1986 bonds); and
WHEREAS, Magnox Pulaski Incorporated has arranged for new financing,
i whereby the 1986 bonds are to be refunded from the proceeds of an Industrial
Development Refunding Bond to be issued by the Pulaski County Industrial
Development Authority; and
WHEREAS, the existing Sovran deed of trust is to be released and a new deed of
trust in favor of First Community Bank, its successors and assigns, in the amount of
approximately 1.6 million dollars is intended to be recorded; and
WHEREAS, the parties have requested the Town of Pulaski agree to the refunding
and to the subordination of the existing deed of trust to the new First Community Bank
deed of trust; and
WHEREAS, assisting in this refinancing will not prejudice the rights of the Town
nor change its priority but will accommodate an industrial citizen of the Town;
NOW, THEREFORE, be it resolved by the Town Council of the Town of Pulaski,
Virginia, sitting in regular session on February 15, 1994, that the Town Manager or his
designee and the Town Attorney are authorized to execute a subordination agreement
and such other documents as are reasonably necessary to assist Magnox Pulaski
Incorporated and the Pulaski County Industrial Development Authority in the issuance of
a 1994 refunding bond ,provided, however, that it is the intent of the Town Council is
that the Town's priority and security shall remain substantially unchanged.
' This resolution is effective upon adoption and adopted by duly recorded vote of
the Town Council of the Town of Pulaski, Virginia, on this 15th day of February, 1994
as follows.
Charles D. Crispin A3z~ Andrew L. Graham Aye
J. R. Schrader, Jr. Aye E. G. Black, Jr. Aye
Roy H. D'Ardenne, Jr. Absent
- Alma Holston Absent
W. H. Schrader, Jr. ~ Robert N. Glenn ~
By~~C/
VI'E MAYOR
ATTEST:
~• J
Ruth Harrell
Clerk of Council
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