Going back to fiscal year 2011, the Town of Cape Charles has maintained a $500,000 Line of Credit for working capital. Town Council has the responsibility and approves all disbursements.
Treasurer Debra Pocock noted that the town has never had to use the line of credit, and that it acts more as an emergency safety net.
As of this month, Xenith (formally Shore) Bank has approved the renewal of the Town’s line of credit with the following terms and conditions.
1. $500,000; Unsecured.
2. Renewal fee and document fee have been waived. Liens, suits & judgements search fee of
$26 will be charged.
3. Variable interest rate at prime plus 0.5%, with a floor of 3.75% (no changes.)
4. Repayment on monthly basis; maintain a zero balance for a period of no less than 30
consecutive days during each 12 month period.
5. Annual review by Xenith Bank.
6. No prepayment penalty.
At the Regular Meeting, Town Council voted unanimously to approve the line of credit and conditions.