HomeMy WebLinkAboutResolution 2670 Authorizing execution of subordination agreement - Clousing: 8-24-87
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RESOLUTION NO.
2670
A RESOLUTION OF THE CITY COMMISSION OF BOZEMAN, MONTANA
AUTHORIZING THE MAYOR TO EXECUTE A SUBORDINATION
AGREEMENT FOR THE LAWRENCE AND MICHAEL CLOUSING
PROMISSORY NOTE
WHEREAS, on February 12, 1987, a
Promissory Note was
executed by Lawrence C. Clausing and Michael Clausing as Grantor
with the City of Bozeman being the beneficiary;
WHEREAS, under the terms of said agreement,
Lawrence C.
Clausing and Michael Clausing received both a loan in the amount
of SEVEN THOUSAND DOLLARS ($7,000.00) and
a grant of FIVE
THOUSAND DOLLARS ($5,000.00) for the purpose of necessary
rehabilitation of their property located on all that portion of
Block 6 of Babcock and Davis Addition to the City of Bozeman,
Montana; and,
WHEREAS, Lawrence C. Clausing and Michael Clausing desire
to
obtain refinancing through Montana Bank, N.A., a Montana
corporation, whereby the SEVEN THOUSAND DOLLAR ($7,000.00)
loan
from the City of Bozeman will be satisfied and place Lawrence C.
Clausing and Michael Clausing in a better financial position;
WHEREAS, Montana Bank of Bozeman, N.A., requires
a first
priority position in said property in order to refinance;
WHEREAS, said grant under the terms of the Agreement will be
forgiven on the 5th Anniversary of the Agreement so long as the
rehabilitated property is not sold or transferred to another
party;
WHEREAS, Lawrence C. Clausing and Michael Clousing agree to
comply with the terms of the Promissory Note which secures the
grant;
WHEREAS, the subordination of the Promissory Note does not
violate the terms of the Home Improvement Program;
NOW THEREFORE BE IT RESOLVED by the City Commission of
Bozeman, Montana, that the Mayor is hereby authorized to sign
said subordination agreement on behalf of the City of Bozeman.
PASSED AND ADOPTED by the City Commission of the City of
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Bozeman this 24th day of August
, 1987.
~*' A. m~
JUDI A. MATHRE,
Mayor
ATTEST:
~ at Jh,~
Ro in L. Sullivan
Clerk of the Commission
City Attorney
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SUBORDINATION AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
THAT WHEREAS the undersigned, City of Bozeman, a municipal
corporation of the State of Montana, is the Beneficiary and the
current holder of a Promissory Note dated the 12th day of
February, 1987, and recorded February 13, 1987
, in Film 95 of
Mortgages, Page 4660 by and between Lawrence C. Clausing
and
Michael Clausing of Bozeman, Montana (Grantor)
which said
Promissory Note is security for the payment of the sum of Five
Thousand Dollars ($5,000.00) and which said Promissory Note
covers:
All that portion of Block 6 of Babcock and Davis
Addition to the City of Bozeman, included within the
following metes and bounds, to-wit: Commencing at a
point in the East line of Church Avenue North, which is
117 feet South of the Northwest corner of said Block 6
of Babcock and Davis Addition to Bozeman; thence
running East 194 feet; thence South 55 1/3
feet; thence
West 194 feet; thence North 55 1/3
feet to the place of
beginning, being a tract 55 1/3
feet by 194 feet,
according to the official plat thereof on file and of
record in the office of the County Clerk and Recorder
of Gallatin County, Montana.
WHEREAS the said Grantor has become indebted to Montana Bank
of Bozeman, N.A., (Lender) on the above described lot and
has
executed a Trust Indenture dated
,
198 and
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recorded
, 198 in Book/Film
of
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Mortgages, Page
to secure the amount so borrowed in which
the Beneficiary, under the Trust Indenture will be the above
named Lender; and
WHEREAS the undersigned, City of Bozeman, a municipal
corporation of the State of Montana, is prepared to subordinate
the lien of its Promissory Note to the above-named Lender under
the above-mentioned Trust Indenture upon the said property;
NOW THEREFORE, for a good and sufficient consideration,
the
receipt of which is hereby acknowledged, the undersigned City of
Bozeman, a municipal corporation of the State of Montana does
hereby subordinate the lien of its Promissory Note to the rights
and claims of the above named Lender under the Trust Indenture
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used to secure such sums as are borrowed by the above-named
Grantor on the above-described property.
DATED this 24th
day of Auqust ,
19-1!l.'
CITY OF BOZE:MAN, a municipal
corporation, State of Montana
~.J\ jt, -A. YV\~
Its ayor
ATTEST:
~L~~
Robin L. Sullivan
Clerk of the Commission
STATE OF MONTANA )
: 55.
County of Gallatin )
On this J~day of ~ ,1987, before me, the
undersigned a Notary Public f r the State of Montana, personally
appeared Judith A. Mathre, known to me to be the Mayor of the
City of Bozeman and Robin L. Sullivan, known
to me to be the
Clerk of the Commission of the City of Bozeman that executed the
within instrument, and acknowledged to me that said officers
executed he sa
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Notar Pu l1c f t
State of Montana
Resid ng at Bozeman ~ ~
My Commission expires: P 'O~ 51
, SEAL
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