2012-006 RES AMENDED LOAN AGREEMENT WITH COP AND KENNETH WHITE DBA WHITE'S FLOORINGRESOLUTION N0. 2012-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PAR[S,
TEXAS, ACKNOWLEDGING AND APPROVING A SUBORDINATION
AGREEMENT ATTACHED HERETO AS EXHIBIT "A" AND
SUBORDINATING THE CITY'S 2008 NOTE WITH KENNETH WHITE
D/B/A WHITE'S FLOORING TO THE AMENDED LOAN AGREEMENT
BETWEEN LAMAR NATIONAL BANK AND KENNETH WHITE;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, On April 8, 2008, The City of Paris made a$60,000.00 loan to
Kenneth White d/b/a Whites Flooring, using Rural Business Enterprise Grant Funds,
for White to purchase a building on N. Main Street for his flooring business; and
WHEREAS, in connection with the City's loan, Lamar National Bank also made
a$60,000.00 small business loan to Kenneth White d/b/a/ White's Flooring, and
Lamar National Bank's loan was put in primary position and the City's note was made
secondary; and
WHEREAS, Kenneth White has recently approached Lamar National Bank
about borrowing an additional $30,000.00 for his business and the Bank has agreed to
loan the additional funds to Mr. White in return for the City subordinating its 2008
note to Mr. White's revised loan amount with Lamar National Bank; and
WHEREAS, Lamar National Bank, having analyzed Kenneth White's financial
position, is proposing to loan him an additional Thirty Thousand Dollars ($30,000.00)
for his business. This amount would bring the current Lamar National Bank loan
balance of $51,750.00 to a new balance of $81,750.00; and
WHEREAS, Mr. White's current loan balance with the City of Paris is
$49,000.00 and he is current with his payments; and
WHEREAS, the City Council hereby deems it to be in the best interests of the
citizens of Paris that the Ciry of Paris approve the subordination agreement, attached
hereto as Exhibit "A", with Lamar National Bank and continue its efforts to fund small
and emerging businesses in the city of Paris, Texas; and,
WHEREAS, the City Council hereby authorizes the Mayor of the City of Paris,
Texas to execute the Subordination Agreement attached hereto as Exhibit "A" and any
other documents necessary to this transaction.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS:
Section 1. That the findings set out in the preamble of this resolution are
hereby in all things approved.
Section 2. That the City Council of the City of Paris, Texas acknowledges and
approves of the Subordination Agreement attached hereto as Exhibit "A" and
authorizes the Mayor to execute this Subordination Agreement or any other
documents related thereto.
Section 3. That this resolution shall be effective from and after the date of
passage.
PASSED AND APPROVED this 27th day of January 2012.
Edwin Pickle
Presiding Council Member
ATTEST:
~
(kce Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent cIlyar, ity Attorney
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p.02
THE STATE OF TEXAS §
SUBORDiNATJON AGRFEMBNT
COUNTY OF LAMAR §
PROPt3SED FIRST LIEN:
DESCRIPTION OF FIRST LIEN NOTE AND DEED OF TRUST:
DATE : THE DAY OF 12012
AMOUNT : $81,750.00
MAKER : KENNETH WHlTE
PAYEE : LAMAR NATIONAL BANK
TRUSTEE : DICK SEVERSON
DEED OF TRUST RECORDfNG INFORMATION:
70 BE RECORDED IN THE OFFiCIAL PUBLIC
TEXAS.
SECOND LIEN:
RECORDS OF LAMAR COUNTY,
DATE : APRIL 4, 2008
AMOUNT : $60,000.00
MAKER : KENNETH WHITE
PAYEE : THE CITY OF PARIS, TEXAS
TRUSTEE : JESSE JAMES FREELEN
DEED OF TRUST RECORDING INFORMATION:
OFFIC{AL PUBLIC RECORDS OF LAMAR COUNTY,
NUMBER 058307-2008.
TEXAS, UNDER INSTRUMENT
WHFREAS, Lamar National Bank is the present holder and owner ofa first lien note dated April
4, 2008, in the original sum of $60,000.00, secured by a vendor's and deed of trust lien fuliy
described in deed of trust to Michael Rhodes, Trustee, of record Under Instrument Number 058306-
2008, Officaal Pubiic Records of I,amar Caunty, "Texas; and
WHEREAS, The City of Paris, Texas is the halder of the second lien note and deed of trust
above described; and
WHEREAS, Kenneth White, has requested Lamar National Bank to advance an additional sum
of $30,000.00 upon his loan and Lainar National Bank is willing to do so only if The City of Paris,
Texas will subordinate their debi and lien ta the entire amount that will be owing to Lamar Naiional
Bank after the additional $30,000.00 advance; and
WHEREAS, the Amount shown above on the Proposed Fitst Lien is the amount of the new note
to Lamar Nationai Bank, which includes the approximate balance owing upon the original first lien
note aild the additional $30,400.00 advance.
ExHIBIT'`A"
01/18/12 10:39AM LA24kRNkTLBk1dK 9037846222 p.03
NOW THEREFORE, THE CITY OF PARIS, TEXAS, for a valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, does hereby agree that note and liens
described her;,in as SECOND L1FN are hereby subordinated to the Proposed First Lien Note and the
Deed of Trust and other liens securing same. The City of Paris, Texas hereby recognizes the Note
and Liens described as PROPOSED FiRST LIEN when made will be first, prior, and superior to
those described as SECONll LIEN.
This Subordination Agreement was approved by Resolution of the City Counsel of the City of
Paris, Texasr on the day of January, ?O12.
FXECUTED this daS= of Januan,, 2012.
'I'HE CITY OF PARIS, '1'EXAS
BY:
A. J. Hashmi, Mayor
STATE OF TEXAS §
COUNTY OT' LAMAR §
THI5INSTRU;VIENT was acknowledged before me on the day of 3anuary, 2012, by
A. J. HASHMI, Mayor of the City of Paris, Texas, on behalf of said city.
Notary Pubiic State of 1'exas
AFTER RECORDING RETURN:
Lamar National Bank
200 South Collegiate
Paris, Texas 75460