HomeMy WebLinkAboutMO #2981MUNICIPAL ORDER NO. 2981
A MUNICIPAL ORDER APPROVING AND AUTHORIZING THE EXECUTION OF
A SUBORDINATION AGREEMENT BETWEEN THE CITY OF PADUCAH AND
INDEPENDENCE BANK
WHEREAS, the City of Paducah ("City") is a mortgagee in a mortgage executed by
Musselman Properties LLC with respect to a certain tract of property located at 3141 Broadway,
Paducah, Kentucky (the "Property"), which mortgage was recorded on December 30, 2021 in
Mortgage Book 1668, page 223, McCracken County Clerk's Office; and
WHEREAS, Musselman Properties LLC intends to refinance its current loan with River
City Partners, LLC, which is secured by a first mortgage on the Property, through a loan with
Independence Bank, which loan will also be secured by a mortgage on the Property; and
WHEREAS, the City is agreeable to the terms of a Subordination Agreement proposed
between the City and Independence Bank so that the City's mortgage will continue to be
subordinate to the mortgage of Independence Bank upon consummation of the aforesaid
transaction.
NOW THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY
AS FOLLOWS:
Section 1. Authorization. The Board of Commissioners of the City of Paducah hereby
approves the Subordination Agreement between the City and Independence Bank in substantially
the form attached hereto as Exhibit A and made a part hereof. The Mayor of the City is hereby
authorized to execute the Subordination Agreement, together with such other agreements,
instruments or certifications, which may be necessary to accomplish the transaction contemplated
by the Subordination Agreement.
Section 2. Effective Date. This Order shall be in full forc d effect on and after the
date as approved by the Board of Commissioners of the City of=c4 KenWeky.
ATTES :
s y Parish, a
Clerk
Adopted by the Board of Commissioners, November 12, 2024
Recorded by City Clerk, November 12, 2024
MO\Subordination Agreement Musselman Properties 3141 Broadway Coke Plant
----- SUBORDINATION AGREEMENT -----
THIS SUBORDINATION AGREEMENT made and entered into on this the day of
2024, by and between IINDEPENDENCE BANK OF KENTUCKY
("Independence Bank"), of
Paducah, KY 42001; and THE CITY OF
PADUCAH, a Kentucky municipality ("City"), of 300 South 5`h Street, Paducah, KY 42001, party
of the second part;
WITNESSETH:
THAT WHEREAS, the City is the Mortgagee in a mortgage executed by Musselman
Properties, LLC, on the 21St day of December, 2020, with respect to a certain tract of property located
at 3141 Broadway, Paducah, Kentucky ("Property"), which Mortgage was recorded on the 30th day
of December, 2020, in Mortgage Book 1668, page 223, McCracken County Court Clerk's Office;
and
WHEREAS, Musselman Properties, LLC intends to refinance it current loan with River City
Partners, LLC, which is secured by a first mortgage lien on the Property, through a loan with
Independence Bank in the amount of $1,800,000.00 ("Loan"), which Loan will be secured by a
mortgage lien on the Property; and
WHEREAS, it is a condition of the Loan that the mortgage of Independence Bank be a first
mortgage lien on the Property and that the City subordinated its mortgage to the new mortgage of
Independence Bank.
NOW THEREFORE, for and in consideration of $1.00 and all other valuable consideration,
and in order to induce Independence Bank to make the aforementioned loan, the City does hereby
subordinate its mortgage on the Property of record in Mortgage Book 1668, page 223, aforesaid
clerk's office, to the mortgage of Independence Bank to be hereinafter filed, which mortgage will
secure the aforementioned Loan in the amount of $1,800,000.00.
IN TESTIMONY WHEREOF, the parties have hereunto set their hands on this the day and
year first above written.
INDEPENDENCE BANK OF KENTUCKY
By: _
Title:
THE CITY OF PADUCAH, a Kentucky
municipality
By: _
Title:
COMMONWEALTH OF KENTUCKY )
ss.
COUNTY OF MCCRACKEN )
The foregoing instrument was subscribed, sworn to, and acknowledged before me by
Independence Bank of Kentucky, by and through its duly authorized officer,
on this the day of 2024.
NOTARY PUBLIC
KENTUCKY STATE AT LARGE
My commission expires:
Notary ID No.
COMMONWEALTH OF KENTUCKY )
ZRA
COUNTY OF McCRACKEN )
The foregoing instrument was subscribed, sworn to, and acknowledged before me by The
City of Paducah, a Kentucky municipality, by and through its duly authorized
, on this the day of 2024.
My commission expires:
Notary ID No.
I hereby certify that this
instrument has been prepared by:
Law Offices
McMurry & Livingston, PLLC
201 Broadway, 7th Floor
P.O. Box 1700
Paducah, KY 42002-1700
Phillip L. Little
NOTARY PUBLIC
KENTUCKY STATE AT LARGE
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