CITY councillors are due to have a report next month on the repayment of a loan made to bail out an unnamed organisation.
The interest-free loan of up to £50,000 was agreed by the Tory-controlled Chester Town Hall Executive behind closed doors early in June.
Officials ruled that public discussion of the loan would be likely to disclose exempt information.
The unidentified organisation was described as a company. It was said the cash was needed to help it deal with short-term cash flow. Councillors agreed to waive the interest, in the region of £750, but insisted on a legal agreement and the payment of a £500 administration fee.
Waiving the interest, they felt, would minimise the cost burden to the firm.
Director of culture and community Mike Dix with Cllr Eric Plenderleith (Con, Tarvin), who is the culture and community portfolio holder and Cllr Adrian Walmsley (Con, Newton St Michael’s), the council’s resources chief, were authorised to agree the amount of the loan and the security for it.
City solicitor Charles Kerry was asked to enter into the necessary agreements to ensure the loan could be made with “limited risk” to the council.
The loan expires on August 31. Its repayment is to be the subject of a report to the September meeting of the executive.