06-M PEDC/Paris Pkg Note Apprv - Laserfiche WebLink

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WHEREAS, it is deemed appropriate, subject to the approval of the PEDC Board, that the current promissory note with Paris Packaging, Inc. be renewed and extended, the term of such extension to be co-extensive with the term of said bonds; and, WHEREAS, it is also deemed appropriate, subject to the approval of the PEDC Board, that a first addendum to the existing security agreement by and between Paris Packaging, Inc. and the Paris Economic Development Corporation to secure the payment of the original note and the extended note be approved concurrently with the renewal and extension of the current promissory note; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That, subject to the approval of the Board of Directors of the Paris Economic Development Corporation, the PEDC resolution and accompanying Renewal and Extension Promissory Note executed by Paris Packaging, Inc., as Maker, and payable to the order of Paris Economic Development Corporation, as Payee, the same being in renewal and extension of that original note executed by Paris Packaging, Inc., as Maker, and payable to Paris Economic Development Corporation, as Payee, dated July 15, 1998, said PEDC resolution and accompanying Renewal and Extension Promissory Note to be substantially in the form attached hereto as Exhibit A and for all purposes incorporated herein, is hereby in all things approved. Section 3. That said Renewal and Extension Promissory Note shall be in the principal amount of $3,392,165.54, with interest at a yearly rate of seven percent (7%), payable in equal monthly payments of $32,000.00 each, payable on the fifteenth (15th) day of each month beginning on July 15, 2003, and continuing thereafter until a final payment of the unpaid balance due and payable on April 15, 2017, the maturity date of said note. Section 4. That the amortization schedule for said note, as the same is attached to said PEDC resolution as Exhibit B, is hereby in all things approved. Section 5. That, subject to the approval of the Board of Directors of the Paris Economic Development Corporation, a First Addendum to Security Agreement (consumer goods, equipment, and farm products) to secure the pledge of assets by Paris Packaging, Inc. to the payment of the aforesaid note, as said First Addendum to Security Agreement is attached to said PEDC resolution as Exhibit C, is hereby in all things approved. Section 6. That this resolution shall be effective from and after its date of passage.