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.