At its Monday evening meeting, the Fiscal Court passed, on first reading, an ordinance that will allow Transcraft to sell up to $2.5 million worth of bonds at a low interest rate. While the county won’t have any financial obligations, it needs to be a “conduit.” said Christian County Attorney Mike Foster.
“The Transcraft Corporation is a major industrial employer in this area, and it wants to expand, which is good,” said Foster. “It wants to increase production and also increase employment opportunities. And to do that, they’ve asked for a bond to finance the expansion.”
Foster, who is also the attorney for the Cadiz/Trigg County Economic Development Commission, read a summary of the ordinance. He said the company gets a “most favorable” interest rate if it goes through the government to issue the bonds.
That being the case, Foster asked the Fiscal Court to issue the bonds, but said that G.E. Capital will actually purchase those bonds, after which Transcraft will borrow the funds and make repayments. He added that the obligation to make those payments will rest solely on Transcraft.
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