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RESOLUTION NO.
A RESOLUTION CONDITIONALLY AUTHORIZING THE
AMENDMENT OF THE TERMS OF AN OPERATING
CAPITAL LOAN IN THE AMOUNT OF $300,000 TO
CARRY TECHNICAL INSTITUTE, INC. BY RELAXING _
THE REQUIREMENT THAT STAID LOAN COLLATERAL
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CONSISTING OF ALL ACCOUNTS RECEIVABLE AND
FIXTURES HAVE GREATER PRIORITY THAN ANY OTHER
CREDITOR AND BY AMENDING THE REQUIREMENT THAT
THE LOAN BE REPAID IN SEVEN (7) YEARS TO
PROVIDE FOR A TWO (2) YEAR REPAYMENT PERIOD.
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WHEREAS, pursuant to Resolution No. 89-786, adopted
August 11, 1989, the City Commission authorized the provision of
an operating capital loan in the amount of $300,000 to Carey
Technical Institute, Inc. (Institute) upon the terms and
conditions set forth therein; and
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WHEREAS, in order to obtain additional credit by a private
sector lender which will enhance the financial position of the
Institute, the City Commission is now willing to amend the
requirement that the Institute give the City priority in loan
collateral; and
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WHEREAS, in consideration for the CITY's willingness to
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accept a secondary lien position, the Institute agrees to
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accelerate the repayment of the principal, loan plus any earned
and unpaid interest; and
WHEREAS, the herein authorization shall only be implemented
upon the City's receipt of a new promissory note, an amendment to
the existing loan agreement, and the execution of a new chattel
mortgage, with said additional documentation containing the new
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terms and conditions as set forth herein;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
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OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble of this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The requirement that the Institute provide
loan collateral to the City oonsisting of all accounts reoeivable
and fixtures is hereby authorized to be amended to ref leot that
the Institute be permitted to grant a lien on its receivables and
fixtures to a private sector lender, with the City of Miami
having a secondary lien position on such receivables and
fixtures.
Section 3. The requirement that the Institute repay the
principal amount of the loan plus any earned and unpaid interest
in seven (7) years is hereby authorized to be amended to require
that the whole remaining unpaid principal sum and any earned and
unpaid interest shall be due and payable on December 31, 1991.
Section 4. The City Manager is hereby authorized to
execute any documents that may be necessary to carry out the
intent of this Resolution.
Section 5. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this llthday of January 1990.
XAVIER L. SUA Z, MA R
AT S
MA AHIRAI, CITY CLERK
PREPARED AND APPROVED BY:
RAFAEL 0. DIAZ
ASSISTANT CITY ATINOGRY
APPROVED AS TO FORM AND CORRECTNESS:
. FERNANDEZ
CITY A'
ROD/fl/M1331
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-90--0027