The Jay Township Supervisors plan to undertake a paving project within the township in the near future, and at their recent meeting approved securing a loan for the project from Northwest Savings Bank.
The supervisors originally discussed the project during their November meeting, at which time they approved advertising for bids for a $150,000 loan.
According to Debbie Leonard, township secretary, bids were received from two area banks, Northwest Savings Bank and First Commonwealth Bank.
The bid from First Commonwealth Bank was a taxable interest rate of 4.79 percent for a term not to exceed sixty months. Additional conditions outlined in the bid were the receipt and review of the financial statements for the township for the last three years; receipt and review of the township's interim financial information; receipt and review of the township's 2010 and 2011 budgets showing that there was sufficient revenue available to repay the debt; compliance with any filings required by the Local Government Unit Debt Act; and that all attorney fees and related costs would be paid by the township.
Leonard noted that Northwest Savings Bank's bid contained two different rates.
"Northwest Savings Bank is a 3.95 percent tax-free rate, but that's with the transfer of [the township's] primary operating account to their bank," Leonard said. "Without [transferring the account] the rate is a 4.2 percent tax-free rate."
The maximum term length for the loan from Northwest Savings was 60 months.
Other conditions stipulated by Northwest Savings Bank in their bid were that all closing documents be prepared by the township's solicitor in accordance with the Local Government Unit Debt Act; that the township maintain its primary operating account at Northwest Savings Bank if they opted to go with the lower rate; and that the township's construction contracts, copies of all invoices for construction draws and a draw schedule were all satisfactorily received and reviewed by the bank.
For more on this story, see the Dec. 20th edition of The Daily Press.