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Council approves $49,717 business loan recommended by LB 840 committee
Summary
Council approved the LB 840 loan committee's recommendation to authorize a $49,717 business loan (application 26-04), secured by a second deed of trust. Council discussed whether closing documents should reference the five-year treasury note or the prime/T-bill rate and directed staff to ensure the loan documents reflect the correct index.
The council voted to approve business loan application 26-04 in the amount of $49,717, following the LB 840 loan committee's recommendation. The loan is to be secured by a second deed of trust on real estate and will use the five-year treasury note as the index for pricing in closing documents, with a spread discussed in the hearing.
"...to approve the LB 840 loan committee application 26 dash o 4 in the amount of 4,000 $49,717," a council member moved, and the motion was seconded and approved. Council members asked whether the rate should be prime or tied to the T-bill/treasury note; members agreed the exact index and rate language will be confirmed in the closing documents.
City staff said the loan terms and closing documentation will reflect the appropriate index (the five-year treasury note) and that the detail will be included by the lender and in closing. The motion passed unanimously.
