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HomeMy WebLinkAboutR-90-002761 1 / 11 / 90 _AY ryyJ 90 02 { - ®, 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 -= 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. a 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 - 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 .j = WHEREAS, in consideration for the CITY's willingness to -- accept a secondary lien position, the Institute agrees to e 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 3 terms and conditions as set forth herein; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY =� 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 I? 7'r -90--0027