HomeMy WebLinkAboutR09-202288
RESOLUTION R09-202
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLAINVIEW, TEXAS AUTHORIZING THE PURCHASE AND
ASSIGNMENT OF THE CITY OF PLAINVIEW'S REVOLVING LOAN
FUND AGREEMENT WITH PEANUT CORPORATION OF AMERICA TO
CAPITOL FUNDS, INC. FOR THE PRINCIPAL AMOUNT OWED,
INTEREST, AND LATE FEE; AUTHORIZING THE MAYOR TO EXECUTE
ALL DOCUMENTS NECESSARY TO TRANSFER ALL OF THE CITY OF
PLAINVIEW'S INTEREST IN SUCH LOAN TO CAPITOL FUNDS, INC.;
AND AUTHORIZING THE MAYOR TO EXECUTE DOCUMENTS
NECESSARY TO RELINQUISH ANY AND ALL INDEBTEDNESS OF
THE PEANUT CORPORATION OF AMERICA TO THE CITY OF
PLAINVIEW, TEXAS
WHEREAS, the City of Plainview executed a Revolving Loan Fund Agreement
with Peanut Corporation of America on March 13, 2006 loaning such Corporation the
total amount of One Hundred and Fifty Thousand and No/100 Dollars ($150,000.00);
and
WHEREAS, Peanut Corporation of America also executed a promissory note
with the City of Plainview on March 13, 2006 for the total amount of One Hundred and
Fifty Thousand and No/100 Dollars ($150,000.00); and
WHEREAS, to secure payments under such loan, Peanut Corporation of
America issued to the City of Plainview a Security Agreement dated March 13, 2006
granting the City interest in various equipment associated with the Plant; and
WHEREAS, the City of Plainview then perfected their Security Agreement by
filing UCC-1 Financing Statements with both the Texas Secretary of State and the
Superior Court of Early County, Georgia; and
WHEREAS, Capitol Funds, Inc. is a guarantor of 100% of Peanut Corporation's
indebtedness to the City pursuant to an Agreement entered March 13, 2006; and
WHEREAS, to perform obligations to the City of Plainview and protect its own
rights and interests, Capitol Funds, Inc. will purchase such indebtedness from the City
receiving an assignment of all interests therein and Security thereto; and
WHEREAS, the City of Plainview does hereby agree to sell, assign, and transfer
to Capitol Funds, Inc. the Indebtedness and Security, based on terms and conditions
set forth in the Purchase and Assignment Agreement and documents attached; and
WHEREAS, the City Council designates Mayor John C. Anderson as the City's
authorized official to sign any and all documents executing the sell, assignment, and
transfer of such loan and releasing all indebtedness related thereto..
Resolution R09-202 Page 1 of 3
289
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PLAINVIEW THAT:
The City Council of the City of Plainview, Texas ("City") hereby approves the
purchase and assignment of the City of Plainview's Revolving Loan Fund Agreement
with Peanut Corporation of America ("Peanut Corp.") to Capitol Funds, Inc. ("CFI")) in
consideration of the payment of Seventy-One Thousand Nine Hundred and Twenty and
91/100 Dollars ($71,920.91), plus accrued interest at the total per diem rate of Ten and
56/100 Dollars ($10.56), calculated for the number of days from June 19, 2009 until the
payment date.
II.
The City shall irrevocably transfer, convey, and assign all of its right, title, and
interest in Indebtedness and Security to CFI.
CFI will assume all Indebtedness and Security in regard to the City's Revolving
Loan Fund Agreement with Peanut Corp., such that it "steps into the shoes" of the City
with regard to all related documents executed by the City and Peanut Corp.
IV.
The Mayor is hereby authorized and directed to execute, respectively, on behalf
of the City of Plainview, all legal documentation necessary to irrevocably sell, assign,
and transfer all of its right, title, and interest in the City of Plainview's Revolving Loan
Fund Agreement, Promissory Note, and Security Agreement securing the indebtedness
of the Peanut Corp.
V.
Further, the Mayor is authorized and directed to execute all legal documents
necessary to relinquish any and all indebtedness of the Peanut Corp. to the City.
PASSED AND APPROVED this 26t`' day of June, 2
n C. Andersonf, Mayor
A'
Belinda Hinojosa, ~Cit}~ Secretary
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290
APPROVED AS TO FORM:
Leslie Spear Pearce, City Attorney
Resolution R09-202
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