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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