HomeMy WebLinkAbout2009-07RESOLUTION 2009-07
• A RESOLUTION OF MORAL OBLIGATION REGARDING
THE NEW RIVER VALLEY DEVELOPMENT CORPORATION
WHEREAS, the Town Council of the Town of Pulaski, Virginia desires to assist in the
development of new businesses to strengthen the local economy, and;
WHEREAS, the New River Valley Development Corporation has obtained favorable terms
and conditions regarding a loan from Carter Bank to continue providing services and
support offered by the corporation to new businesses seeking to begin operations in the
New River Valley;
NOW THEREFORE be it RESOLVED by the Town Council of the Town of Pulaski, Virginia
sitting in regular session this 19th day of May 2009, that the Town agrees to provide a
share of a moral obligation for the outstanding principal of the proposed Carter Bank loan
to the New River Valley Development Corporation.
FURTHER that such share of a moral obligation for the outstanding principal of the
proposed loan from Carter Bank shall not exceed one-seventh of one half of the total
amount of the loan or $184,450 whichever is less, and shall be modified as a result of the
liquidation of the bank's collateral.
BE IT FURTHER RESOLVED that the Town of Pulaski understands that the moral
• obligation shall be subject to appropriation beyond the current fiscal year and does hereby
recommend to its successors that this agreement be kept in force during the term of the
loan. The Moral Obligation, secured by a second deed of trust on the New River Valley
Competitiveness Center, shall likewise be shared.
This resolution is effective upon adoption and is hereby adopted this 19th day of May 2009
by the duly recorded vote of the Town Council of the Town of Pulaski, Virginia as follows:
David L. Clark -Aye Joel 6. Burchett, Jr. - No
Larry G. Clevinger, II -Aye Robert A. Bopp - No
H.M. Kidd -Aye Morgan P. Welker -Aye
ATTEST:
• Patricia Cruise, Clerk of Council
THE TOWN OF PULASKI, VIRGINIA
BY:
e rey S. orrell, Mayor