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Draft <br />RESOLUTION N0. _ <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, <br />TEXAS, ACKNOWLEDGING AND APPROVING A SUBORDINATION <br />AGREEMENT ATTACHED HERETO AS EXHIBIT "A" AND <br />SUBORDINATING THE CITY'S 2008 NOTE WITH KENNETH WHITE <br />D/B/A WHITE'S FLOORING TO THE AMENDED LOAN AGREEMENT <br />BETWEEN LAMAR NATIONAL BANK AND KENNETH WHITE; <br />MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE <br />SUBJECT; AND PROVIDING AN EFFECTIVE DATE. <br />WHEREAS, On April 8, 2008, The City of Paris made a$60,000.00 loan to <br />Kenneth White d/b/a Whites Flooring, using Rural Business Enterprise Grant Funds, <br />for White to purchase a building on N. Main Street for his flooring business; and <br />WHEREAS, in connection with the City's loan, Lamar National Bank also made <br />a$60,000.00 small business loan to Kenneth White d/b/a/ White's Flooring, and <br />Lamar National Bank's loan was put in primary position and the City's note was made <br />secondary; and <br />WHEREAS, Kenneth White has recently approached Lamar National Bank <br />about borrowing an additional $30,000.00 for his business and the Bank has agreed to <br />loan the additional funds to Mr. White in return for the City subordinating its 2008 <br />note to Mr. White's revised loan amount with Lamar National Bank; and <br />WHEREAS, Lamar National Bank, having analyzed Kenneth White's financial <br />position, is proposing to loan him an additional Thirty Thousand Dollars ($30,000.00) <br />for his business. This amount would bring the current Lamar National Bank loan <br />balance of $51,750.00 to a new balance of $81,750.00; and <br />WHEREAS, Mr. White's current loan balance with the City of Paris is <br />$49,000.00 and he is current with his payments; and <br />WHEREAS, the City Council hereby deems it to be in the best interests of the <br />citizens of Paris that the City of Paris approve the subordination agreement, attached <br />hereto as Exhibit "A", with Lamar National Bank and continue its efforts to fund small <br />and emerging businesses in the city of Paris, Texas; and, <br />WHEREAS, the City Council hereby authorizes the Mayor of the City of Paris, <br />Texas to execute the Subordination Agreement attached hereto as Exhibit "A" and any <br />other documents necessary to this transaction. <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br />OF PARIS, TEXAS: <br />143 <br />