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Select Board approves M&T Bank short‑term note to support library cash flow
Summary
After a staff presentation, the board voted unanimously to accept terms from M&T Bank for a short‑term grant anticipation note to bridge timing between reimbursements; legal review estimated at $300–$400 and the friends group will cover interest on short draws.
A library representative outlined a short‑term line of credit (grant anticipation note) being offered by M&T Bank to help the library bridge timing differences between reimbursements and expenditures. The loan was described as a variable SOFR‑based instrument with a municipal discount (“municipalities get a 20% discount”), a practical floor of 3%, and an example estimate of interest exposure in the low hundreds of dollars for short draws. The representative said the library’s friends group would cover interest charges for short withdrawals, that there are no bank closing costs, and that legal review by a recommended attorney would likely cost roughly $300–$400.
Given a deadline for bank closing around the 16th, the Chair moved to accept the offered terms. “I will make a motion that we accept the terms being offered by M and T Bank for the short term grant anticipation expense note,” the Chair said; the board voted unanimously to accept the terms and authorized signatories to complete paperwork with the understanding that any substantive change would require re‑signature and further board review.
