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HomeMy WebLinkAboutResolutions - R-89-15 - 07/05/1989 - CDAP Loan GrantR-89-15 RESOLUTION AUTHORIZING SUBORDINATION OF CLASSIC PRODUCTS INC. SECURITY INTEREST TO THE CITY OF MCHENRY IN FAVOR OF DEBTOR'S SECURITY TO THE BRONSON-GORE BANK IN PROSPECT HEIGHTS WHEREAS, the City of McHenry, Illinois is the owner and holder of a promissory note that was issued by Classic Products, Inc. and which is secured by a certain Financing Statement that was filed in the office of the Secretary of State of Illinois on July 17, 1987 as Document No. 2307916; and, WHEREAS, it is in the best interest of the City of McHenry that the Bronson -Gore Bank in Prospect Heights (hereinafter referred to as "Bank") loan money to Classic Products, Inc., a Delaware Corporation (hereinafter referred to as "Debtor"); and, WHEREAS, said Bank is willing to make loans to the Debtor only if the City of McHenry agrees to subordinate the above described security interest of the City to the • security interest of the Bank which has been, or may hereafter be, given to it by the Debtor. NOW'THEREFORE, be it resolved by the City Council of the City of McHenry, McHenry County, Illinois that the Mayor of the City of McHenry is hereby authorized and directed to execute a Subordination Agreement in favor of the Bronson -Gore. Bank in Prospect Heights whereby the City of McHenry will subordinate its security interest in the aforesaid Financing Statement to the security interest of the Bank pursuant to the provisions of that certain Subordination Agreement which is attached hereto, made a part hereof, and incorporated herein by reference. PASSED this 5th day of July 1989. AYES: Bolger, Donahue, Lieder, Teta, Patterson, Serritella. NAYES: None. ABSTAINED: None. ABSENT: Smith, McClatchey. NOT VOTING:_ None. APPROVED this 5th day of July 1989• PA LA-�WA-66- ATTEST: CITY CLERK LXHibil "A" Chu STATEMENT is presented to a blina olbcer lot idiot, pursuaoa to the Uoilorm Commercial Code Debtors) t-' ojt Name Fissl) and address(..) Classic Products, 4010 Albany St. Secured Pauly(Les) and addresses) City of McHenry llk-i—N—Green St. McHenry I1. 60050 Second PosiLioll This llnm,cing statement covers the following types (or Items) a( property: 01 1 Lot Lot 1 1 1 Lot 1 2 1 1 Inc. McHenry, I1. 60050 Samuels No. 1 1/4 Popcorn (Not yet completed) Craftsman Bench -type drill Laboratory Equipment (Oven Test Equipment Hager Double end grinder Big JOe LIft Truck Spring maker W/Z Convcrsion Press & Ref rig) (#133687) I- FrLnQ Oscar (Dole, Time, Number, and Filing OIrIC ASSIGNEE or SECURED PARTY DM Spring Gauge #108 Miscellaneous in Spring Department (Tools, Arbors, Payoff Reels) Small Comparator #1265 Hearst Spring Machines Snow Tapping Machine Dispatch Oven (Batch #60336) 2-0 Products of Co11at"01 ore olio covered Addiboaal .heels preNated. . Filed with Olbce of Secrelar7 of SIOIe of IWn,)ls, r D•blor la a hnasmllliva utWtr as delined La UCC S9•10S. % iwf9/ Slgnolure of (Do FILING OFF v (� '��!^^tvi. al L4.IA- tt. rvn.1 o tl,.r f ». ICER—ALPHA©ETICAL S-7-1u1e al SK.,.d Purl, � C.— C "., d By UCC ig 402(2) This forrn of flnancing sLatemcnt Is approved by the 5ecre Lary of $talc. STANDARD FORM —UNIFORM COMMERCIAL CODE— FORM UCC•1—ItFv, 1 75 4 Kick Presses 15 Samuels (Popcorn),Spring Makers 1 Samuels (Popcorn) Spring Maker (larger but older) 3 Torrington Model 143001 Torsion Spring Makers 2 Torrington Model 143000 Torsion Spring Makers Custom Nilson Carlson Winder Torrington Model W100A Precision Spring Maker Toren No. 1/2 Precision Spring Maker: SIN 134248-WS 1 Torrington Model W11A Precision -Spring Makers Torrington Model W11A Torsion Spring Winder Sleeper Hartley No. 1/2 Series 790 Universal Coiler: ' Samuels Automatic Spring Coilers Samuels No. 1.1/4 Popcorn Spring Makers W/Z Conversion Boyar Schultz Surface Grinder (#1822 & 9603) Beasley No. 205 Grinder #205-18-028 L & N omQQ�� Fu Wagqees ((�� Di:spat h 8'50 3Te�iperatu�e Batclf An $ 5 Beasley Grinder (Double Disc) 905• #2568138 S/11 82-12738 SUBORDINATION AGREEMENT Agreement made this 5th day of Jury. 1989 between THE CITY OF MCHENRY ("The City") and THE BRONSON-GORE BANK IN PROSPECT HEIGHTS, a banking institution organized and existing under the laws of the State of Illinois with offices at 606 Milwaukee Avenue, Prospect Heights, IL 60070 (hereinafter referred to as "Bank"). WITNESSETH: WHEREAS, "The City" has a security interest in specific goods, machinery and equipment (See Exhibit "A" attached) (collectively referred to as the "security interest of The City"), which security interest is perfected by "The City" filing of financing statement as follows: Filing No. Date: Illinois Secretary of State 2307916 07/17/87 WiiEREAS, Bank has or may acquire a security interest in specific goods, machinery and equipment listed on Exhibit A" attached hereto; all proceeds and products (collectively referred to as the "security interest of Bank"), which security shall be perfected by Bank filing financing statements. WHEREAS, the parties hereto desire and intend to subordinate and postpone the priority, operation and effect of the security interest subject to and provided that the security interest of the Bank be perfected by Bank's filing financial statements so that the security interest of Bank is perfected by the aforesaid filings. NOW THIS AGREEMENT WITNESSES: that the parties hereto, intending to be legally bound hereby, in consideration of the premises and of the advantages'xo be derived from these presents, as well in consideration of the sum of One Dollar ($1.00) lawful money of the United States of America, each to the other well and truly paid at and before the sealing and delivery of these presents, receipt whereof is hereby acknowledged, agree, each with the other that the security interest of "The City" perfected by the aforesaid filings as described herein be and the same is by these presents made subordinate, junior and inferior and postponed in priority, operation and effect to the priority, operation and effect of the security interest of Bank, subject to and provided that the security interest of Bank be perfected by Bank's filing of financial statements as herein above mentioned. The subordination and postponement in priority, operation and effect of said security interest of "The City" perfected by the aforesaid filings shall have the same force and effect as though the said security interest of Bank perfected by Bank's filings of financial statements, had attached and was perfected by filing prior to the time of the filing of the aforesaid financing statement by "The City". This Agreement shall be binding on the parties hereto, their successors and assigns. THE CITY OF MCHENRY By: &//& Title: .144b� CERTIFICATE FOR CERTIFYING THE AFOREGOING RESOLUTION The undersigned hereby certifies that she is the City Clerk of the City of McHenry, Illinois, and that the attached and foregoing resolution was adopted by the City Council of the City of McHenry, Illinois at a duly convened meeting of the City Council on July 5 , 1989, that a quorum was present and acting throughout said meeting, that said resolution is, as of this date, in full force and effect, without amendment or alteration and that said resolution is not inconsistent with the enabling authority of the City, ordinances, laws or regulations of the City of McHenry nor any relevant statute. CITY CLERK (SEAL)