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Salisbury Line of Credit renewal Resolution

↑Meetings/Resolutions/32-2017
Activeformal_resolutionongoingAuthorizes the continuance of a $200,000 commercial line of credit from Salisbury Bank at an interest rate of 1.88% or up to 2% for interim funding of public improvements, with the Mayor authorized to sign the continuance note and the Village Clerk to attest and affix the corporate seal.
First seen
2017-11-13
Latest event
2017-11-13
adopted
Expires
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Resolution text

RESOLVED

  1. The continuance of the line of credit from Salisbury Bank for $200,000 at 1.88 or up to 2% interest
  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 — 4 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 it's 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, 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
  • WHEREAS, Salisbury Bank offers a line of credit at an interest rate of 1.88 or up to 2%

Lifecycle (1 event)

2017-11-13adoptedvote: unanimous
Approve Resolution 32-2017 authorizing continuance of $200,000 line of credit from Salisbury Bank.
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 1.88 or up to 2% interest
  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 it's 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, 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
  • WHEREAS, Salisbury Bank offers a line of credit at an interest rate of 1.88 or up to 2%
Subject key: salisbury_line_of_credit