R-20-043
RESOLUTION
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK EAST
UTILITY, INC, TO ENTER INTO A TERM LOAN AND RENEW A FIXED ASSET
LINE OF CREDIT WITH COBANK, ACB
CITY OF NASHUA
In the Year Two Thousand and Twenty
WHEREAS, the City of Nashua is the sole shareholder of Pennichuck Corporation
(“Pennichuck”) and each of its subsidiaries;
WHEREAS, Article IX (3) of the Articles of Incorporation of Pennichuck and Article V
§2 of the by-laws of Pennichuck require the approval of the sole shareholder (the City of
Nashua) for Pennichuck to create, incur, assume, or guarantee any indebtedness for borrowed
money, which includes contracting a loan on behalf of Pennichuck or its subsidiaries; and
WHEREAS, Pennichuck East Utility, Inc. is a regulated New Hampshire public water
utility, and is a wholly owned subsidiary of Pennichuck which, in turn, is wholly owned by the
City of Nashua. :
NOW, THEREFORE, BE IT RESOLVED by the Board of Aldermen of the City of
Nashua that the City approves (1) the loan to Pennichuck East Utility, Inc. from CoBank, ACB,
in an amount of $803,275, with a 25-year amortization schedule; (2) the guarantee by
Pennichuck Corporation of the payment by Pennichuck East Utility, Inc. of said loan; and (3) the
renewal of the fixed asset line of credit for Pennichuck East Utility, Inc. with CoBank, ACB, ata
facility level of $3 million for a period of three years.
