Resolution of the Board of Directors of the Industrial Development Authority of the Town of Front Royal & the County of Warren, Virginia (the “EDA”) Approving Fourth Forbearance Agreement with First Bank and Trust Company (“FB&T”).
WHEREAS, the EDA is the borrower and FB&T is the lender regarding two Loan Agreements, one dated March 2, 2022 (the “Line of Credit Note”) and one dated December 16, 2015 (the “Industrial Development Note”); and
WHEREAS, the EDA is currently in default on the Line of Credit Note and the Industrial Development Note; and
WHEREAS, the EDA and FB&T previously negotiated in good faith and agreed that FB&T would forbear from exercising its rights and remedies under the Line of Credit Note and the Industrial Development Note upon the terms and conditions set forth in an agreement (the “Forbearance Agreement”); and
WHEREAS, the EDA and FB&T previously negotiated in good faith and agreed that FB&T would extend the Forbearance Agreement upon the terms and conditions set forth in an agreement (the “Second Forbearance Agreement”); and
WHEREAS, the EDA and FB&T previously negotiated in good faith and agreed that FB&T would extend the Second Forbearance Agreement upon the terms and conditions set forth in an agreement (the “Third Forbearance Agreement”); and
WHEREAS, the EDA and FB&T have negotiated in good faith and agreed that FB&T would extend the Third Forbearance Agreement upon the terms and conditions set forth in an agreement (the “Fourth Forbearance Agreement”); and
WHEREAS, the parties have agreed it is in the best interests of both to enter into a Fourth Forbearance Agreement to facilitate the EDA’s payment of debt to FB&T, as set forth in the Fourth Forbearance Agreement; and
NOW, THEREFORE, BE IT RESOLVED THAT:
The EDA Board of Directors does hereby agree to enter into and execute the Fourth Forbearance Agreement as negotiated by the parties and as attached hereto; and
The EDA Board of Directors authorizes its Chair and Secretary to execute on behalf of the EDA the Fourth Forbearance Agreement and any other related documents required by FB&T pursuant to the terms and conditions of the Fourth Forbearance Agreement, and the Secretary is authorized and directed to affix or to cause to be affixed the seal of the EDA to the Forbearance Agreement.
Adopted: June 19, 2026: June 19, 2026 Resolution Approving Fourth Forbearance Agreement with FB&T