Subject: 19038/Linc Financial Serv./Tenn.Hotel
Date: Thu, 10 Jan 1991 10:47:00 -0500


                               RESOLUTION NO. 19038
                  
                  
                   A RESOLUTION AUTHORIZING THE OFFICE OF THE
                   CITY ATTORNEY TO INSTITUTE PROCEEDINGS, IF
                   NECESSARY, TO SUBORDINATE THE SECURITY
                   INTEREST OF LINC FINANCIAL SERVICES, INC. TO
                   THE SECURITY INTEREST OF THE CITY OF
                   CHATTANOOGA, TENNESSEE ACQUIRED PURSUANT TO
                   AN URBAN DEVELOPMENT ACTION GRANT LOAN TO
                   TENNESSEE HOTEL ASSOCIATES, LTD. AND TO TAKE
                   ALL OTHER NECESSARY ACTION TO REQUIRE LINC
                   FINANCIAL SEVICES, INC. TO FULFILL ITS
                   OBLIGATION FOR PARTIAL FUNDING OF THE
                   REHABILITATION OF THE READ HOUSE HOTEL.
                  
                  
                                                    
                  
                  
       	    	 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
       CHATTANOOGA, TENNESSEE, That the the Office of the City Attorney
       be and is hereby authorized to institute proceedings, if
       necessary, to subordinate the security interest of LINC Financial 

       Services, Inc. to the security interest of the City of
       Chattanooga, Tennessee acquired pursuant to an Urban Development
       Action Grant Loan to Tennessee Hotel Associates, Ltd. and to take 

       all other necessary action to require Linc Financial Sevices, 
Inc.
       to fulfill its obligation for partial funding of the
       rehabilitation of the Read House Hotel.
      
       ADOPTED:	 May 28, 1991
      
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