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Trappe extends interim loan maturity while USDA funding completes
Summary
The council adopted Resolution 6-2024 to extend by six months the maturity date of interim financing for a pumping station project because USDA funding, while approved, is not yet available; the motion passed unanimously.
Trappe’s council adopted Resolution 6-2024 on Dec. 4 to modify a note with Shore United Bank and extend the maturity date of interim financing for the pumping station project by six months.
President Schmidt read the resolution and Attorney Lyndsey Ryan explained the change: the current loan matures the following day and, although USDA funding has been approved, the funds would not be in place before the maturity date. "This is to extend the maturity date for 6 months for the interim financing for the pumping station project as the current loan matures tomorrow and while the USDA funding is approved, it is not in place before this maturity date," Attorney Ryan said. Commissioner Jeremy Newnam moved adoption; Commissioner Water Chase seconded and the motion passed unanimously.
The resolution applies to a General Obligation Bond (principal $1,376,000) and a related grant ($599,500) for which $435,121.71 has been drawn from a BAN; the modification extends the interim financing schedule to bridge the gap until USDA funds are available.
