VIDEO: Atlantic City May Not Face Bankruptcy

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ATLANTIC CITY - The city's council approved a long- awaited state loan to help hold off a possible bankruptcy.
However, if the city cannot repay the loan, the state can, therefore, begin to seize city assets.
With the city and state in agreement, the $74 million dollar loan is part of a larger financial aid package to help the shore resort get its finances in order.
Democratic Council President Marty Small says the funds will relieve the short- term pressure on Atlantic City, as it tries to come up with a fiscal reorganization that would prevent the state from taking over its finances and major "decision- making" power in November.
Earlier this week, Moody's Investors Service warned that the city would likely default on a $3.4 million dollar debt service payment on Monday if the loan didn't go through before then.