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ORDINANCE # 96- 7- SS3 4
AN ORDINANCE APPROVING THE RESTRUCTURING
OF AN ECONOMIC DEVELOPMENT LOAN IN THE
AMOUNT OF $10,113.20 TO BEVERLY MCKINLEY.
WHEREAS, the City did lend to David Harris and Beverly Harris (nka
Beverly McKinley) the principal sum of $15,000.00 from the Economic Development
0 Escrow Fund, which fund is serviced by Growth, Inc., as agent for the City; and
WHEREAS, David Harris and Beverly Harris did execute a promissory
note dated December 30, 1988, to the City providing for said loan to be repaid in 120
equal monthly installments, said loan to bear interest at the rate of five percent (59/6)
per annum; and
WHEREAS, said loan was secured by a third mortgage on the real
property located at 201 Broadway, Paducah, Kentucky, which mortgage interest was
to be inferior to the mortgage interests, in the same real estate, of William M. Shelton
and wife, Barbara Shelton, and Citizens Bank & Trust Company of Paducah,
Kentucky; and
WHEREAS, payments on the aforesaid indebtedness owed to City have
not been made in a timely fashion and David Harris and Beverly Harris have defaulted
fD
on same; and
WHEREAS, a disagreement has also arisen as to the current principal
and interest balance due and owing on the aforesaid indebtedness owed by David
Harris and Beverly Harris to the City of Paducah; and
WHEREAS, a mutual mistake has also been identified in the original
promissory note between the City and David and Beverly Harris dated December 30,
1988, to which all parties hereto are desirous of correcting; and
WHEREAS, the parties hereto have worked out an agreement regarding
the restructuring of the indebtedness owed by David Harris and Beverly Harris to the
City, and do now desire to formalize such agreement in writing.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. That the Mayor is authorized and directed to enter into a
loan agreement with Beverly McKinley to restructure the Economic Development loan
in the amount of $10,113.20 which shall bear interest at the rate of five percent (5%)
655
per annum payable to the City in 60 equal monthly installments of $190.85, beginning
on the 15th day of August, 1996, which loan shall be secured by a second mortgage
interest against the real property located at 201 Broadway and generally known as
Paducah Harbor Plaza, which lien shall be subordinate and inferior only to the first
mortgage interest of The Paducah Bank and Trust Company in the principal amount
of $147,000.00. i
Section 2. In order that the agreement between the City and Beverly
McKinley can be finalized expeditiously, an emergency is hereby declared to exist and
this ordinance shall become effective with one reading.
Albert Jones, May r
ATTEST:..
Ci Clerk
Introduced and adopted by the Board of Commissioners
Recorded by City Clerk
Published by The Paducah Sun