485.97
RESOLUTION AUTHORIZING TOWN COUNSEL TO COMMENCE
CIVIL LITIGATION AGAINST AMG AND/OR RELATED PARTIES
RESOLUTION NO.: 485.97
INTRODUCED BY: Mr. Theodore Turner
WHO MOVED ITS ADOPTION
SECONDED BY: Mr. Fred Champagne
WHEREAS, the Town of Queensbury (the “Town”) received a HUD
grant in the amount of $400,000 which the Town used to loan AMG
Industries, inc. (“AMG”) $370,000 in August, 1994, and
WHEREAS, AMG has ceased making payments under such loan and
currently is being liquidated pursuant to Chapter 7 of the Federal
Bankruptcy Code, and
WHEREAS, based on the Town’s investigation of the loan
arrangement, certain irregularities have been discovered, and
WHEREAS, the Town Board of the Town of Queensbury wishes to
commence civil litigation seeking restitution and/or damages for
the loss it has suffered,
NOW, THEREFORE, BE IT
RESOLVED, that the Town Board of the Town of Queensbury hereby
authorizes and directs the Town Counsel to commence civil
litigation against such persons as the Town Counsel determines
should be included seeking restitution and/or damages for the loss
the Town has suffered from its loan to AMG Industries, Inc., and
BE IT FURTHER,
RESOLVED, that legal fees to commence the litigation shall not
exceed $10,000 without further authorization from the Town Board,
and
BE IT FURTHER,
RESOLVED, that the Town Supervisor and Town Counsel are hereby
authorized to take such actions and execute such documents as are
necessary to effectuate this resolution.
Duly adopted this 15th day of December, 1997, by the following
vote:
AYES : Mr. Turner, Mrs. Monahan, Mr. Champagne
NOES : None
ABSENT: Mrs. Goedert, Mrs. Pulver