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SALISBURY BANK LINE OF CREDIT RENEWAL – VILLAGE OF RED HOOK

↑Meetings/Resolutions/21-2020
Activeformal_resolutionongoingThe Village authorizes the continuance of a commercial line of credit in the amount of $200,000 from Salisbury Bank at an interest rate of prime less 0.25% for interim funding of public improvements, purchases, and grant reimbursements, with the Mayor authorized to sign the note and the faith and credit of the Village pledged for repayment.
First seen
2020-10-13
Latest event
2020-10-13
adopted
Expires
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Resolution text

RESOLVED

  1. the continuance of the line of credit from Salisbury Bank for $200,000 at prime less .25%
  2. the specific purpose and amount utilized in a bridge loan of the obligation is to be stated in separate, specific resolutions when the need arises
  3. the Mayor is authorized to sign the continuance note and any ancillary documents related to this resolution. The Village Clerk is directed to attest and affix to such notes the corporate seal of the Village of Red Hook
  4. the faith and credit of the Village of Red Hook are hereby pledged for the payment of the principal and interest on the note
Show preamble — 5 WHEREAS clauses
  • WHEREAS, the Village of Red Hook periodically receives grants for various infrastructure improvements and vehicle/equipment purchases that are "reimbursement" grants where the village has to spend its resources and process reimbursement requests
  • WHEREAS, these grants are a significant aspect in the Village's ability to perform infrastructure upgrades and make certain purchases
  • WHEREAS, the Village periodically makes purchases that are funded from multiple budget lines but needs an upfront payment method to issue one check
  • WHEREAS, there are needs to reduce the impact on the Village's General Fund by exercising the line of credit as a bridge loan for the time gap between payment by the village and reimbursement by the grantor or internal budget lines
  • WHEREAS, Salisbury Bank offers a line of credit at an interest rate of prime less .25%

Lifecycle (1 event)

2020-10-13adoptedvote: unanimous
Adopt Resolution 21-2020 to renew the Salisbury Bank line of credit for $200,000 at prime less 0.25% for interim funding of public improvements and purchases.
moved by Blundell · seconded by Kovalchik
Show text snapshot for this event
Resolved
  1. the continuance of the line of credit from Salisbury Bank for $200,000 at prime less .25%
  2. the specific purpose and amount utilized in a bridge loan of the obligation is to be stated in separate, specific resolutions when the need arises
  3. the Mayor is authorized to sign the continuance note and any ancillary documents related to this resolution. The Village Clerk is directed to attest and affix to such notes the corporate seal of the Village of Red Hook
  4. the faith and credit of the Village of Red Hook are hereby pledged for the payment of the principal and interest on the note
Whereas
  • WHEREAS, the Village of Red Hook periodically receives grants for various infrastructure improvements and vehicle/equipment purchases that are "reimbursement" grants where the village has to spend its resources and process reimbursement requests
  • WHEREAS, these grants are a significant aspect in the Village's ability to perform infrastructure upgrades and make certain purchases
  • WHEREAS, the Village periodically makes purchases that are funded from multiple budget lines but needs an upfront payment method to issue one check
  • WHEREAS, there are needs to reduce the impact on the Village's General Fund by exercising the line of credit as a bridge loan for the time gap between payment by the village and reimbursement by the grantor or internal budget lines
  • WHEREAS, Salisbury Bank offers a line of credit at an interest rate of prime less .25%
Subject key: salisbury_bank_line_of_credit