AGENDA CAPTION:
Title
Consider approval of Resolution 2018-60R, approving the terms and conditions of two subordination agreements between the City of San Marcos, Compass Bank and Berry Aviation, Inc. to secure Compass Bank's lien as superior in regards to aircraft and aircraft components purchased with loan proceeds and located in two separate hangars at the San Marcos Regional Airport; authorizing the city manager to execute the subordination agreements; and declaring an effective date.
Body
Meeting date: April 17, 2018
Department: Airport Management
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
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City Council Strategic Initiative: [Please select from the dropdown menu below]
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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Background Information:
Berry Aviation, Inc., a long-term tenant of the Airport, secured a loan for the purchase of aircraft and aircraft components from Compass Bank. The Airport, as landlord, has a statutory lien against the personal property of Berry in the event of default. Compass Bank has requested the attached subordination agreements (one for each leased hangars) to evidence the Airport's agreement that the Compass Bank lien is senior as to the personal property owned by Berry Aviation.
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