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HUMANE SOCIETY REQUEST FOR SUBROGATION OF REVERTER CLAUSE <br />Attorney Paull recalled that last May the County executed a <br />deed with the Humane Society on their new site, which included a <br />reverter clause in the event the property is no longer used for <br />the same purpose. The Humane Society has received a commitment <br />for a standby loan in the event they are not able to sell their <br />present building before construction starts on the new site. The <br />loan commitment is contingent upon the County subordinating the <br />reverter clause in the deed, which means that the County's <br />reversion would be subject to the first mortgage. The commitment <br />simply reads that the commitment is subject to the following <br />conditions: "that the County subordinate the reverter clause to <br />allow First Bankers to record a properly executed first <br />mortgage." <br />Commissioner Lyons was concerned that should the Humane <br />Society ever go out of business, that the property might be used <br />for another purpose. <br />Attorney Paul explained that we would still take ownership <br />of the property in the reverter. It just would be subject to a <br />first mortgage in favor of the bank. Therefore, we would have <br />control over the use of the property providing we start payment <br />on the mortgage. The $100,000 mortgage would be repayable over a <br />15 -year period with a balloon over 4 years. He understood that <br />there is the possibility the mortgage will be paid off sooner <br />once the present property is sold, and that there is also the <br />possibility that the mortgage might never be taken out. This is <br />just a standby commitment at this point. <br />Andy Beindorf, an officer of the Humane Society, reported <br />that they have received the bids for construction of the facility <br />and they are looking at somewhere in the neighborhood of <br />$450,000. They are presently $100,000 short and are in the <br />process of getting the standby loan. Every lending institution <br />they approached wanted the assurance that they would be in first <br />position on the mortgage and the Humane Society is asking that <br />23 <br />CT 2 41984 BOOK 58, pni-. 795 <br />I <br />