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09-Deliberate and act on a Resolution approving the PEDC Resolution authorizing the Amended Promissory Note and Second Addendum to Security Agreement between Paris Pkg.and Paris Economic Dev. Corp.
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09-Deliberate and act on a Resolution approving the PEDC Resolution authorizing the Amended Promissory Note and Second Addendum to Security Agreement between Paris Pkg.and Paris Economic Dev. Corp.
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8/22/2012 3:10:54 PM
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6/25/2010 3:36:43 PM
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CITY CLERK
Doc Name
09
Doc Type
Agenda
CITY CLERK - Date
6/28/2010
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PARIS ECONOMIC DEVELOPMENT CORPORATION <br />RESOLUTION N0. PEDC -2010-002 <br />A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PARIS <br />ECONOMIC DBVELOPMENT COPRORATION AUTHORIZING AND <br />APPROVING THE FIRST AMENDED RENEWAL AND EXTENSION <br />PROMISSORY NOTB AND SECOND ADDENDUM TO THE SECURITY <br />AGREEMENT BETWEEN PARIS PACKAGING, INC. AND PARIS ECONUMIC <br />DEVELOPMENT CORPORATION TO REFLECT A LOWER INTEREST RATE; <br />MAKING OTHER FINDINGS AND PRUVISIONS RELATED TO THE <br />SUBJECT; AND PROVIDING AN EFFECTIVE DATE. <br />WHEREAS, On July 13, 1998, the Paris Economic Development Corporation passed <br />Resolution No. 98-011, authorizing and approving a loan in the amount of $4,000,000.00 <br />to Paris Paclcaging, Inc. with a five-year term and a seven percent (7%) interest rate; and, <br />WHEREAS, on April 16, 2003, the PEDC passed Resolution No. 2003-003 <br />authorizing and approving a Renewal and Extension of the 1998 Promissory Note by <br />extending the maturity date of the Note from July 15, 2003 to Apri] 15, 2017; and, <br />WHEREAS, the original $4,000,000 loan fi-om PEDC to Paris Packaging, Inc. was <br />financed in part fihrough PEDCs issuance of $4,000,000 in Sales Tax Revenue Bonds, <br />Series 1998; and, <br />WHEREAS, in order to take advantage of lower interest rates, on March 22, 2010, <br />the PEDC passed a Resolution authorizing the issuance of $2,685,000.00 in Refunding <br />Bonds to refinance the 1998 Series Sales Tax Revenue Bonds at a Net Interest Cost (NIC) <br />of 3.689%; and, <br />WHEREAS, an March 22, 2010, the Paris Economic Development Corporation <br />voted to pass the interest rate savings generated from the 2010 Refunding Bonds to Paris <br />Packaging, Inc.; and, <br />WHEREAS, it is now deemed necessary and appropriate to amend the 2003 <br />Renewal and Extension Promissory Note and the Security Agreement between the PEDC <br />and Paris Pacltaging, Inc. to reflect the lower interest rate and revised amortization <br />schedule. <br />NOW, THEREFORE, BE IT RBSOLVED BY THE PARIS ECONOMIC <br />DEVELOPMENT CORPORATION: <br />Section 1. That the findings set out in the preamble to this resolution are hereby <br />in all things approved. <br />EXHIBlT A,.. <br />5 2 <br />
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