Res 2010-166 - Laserfiche WebLink

Home Browse Search

improvements. Section 3.03. Loan for Renovation. The City shall make a loan (the "Loan ") to Recipient in the amount of $75,000.00 (the "Principal Amount ") for the Renovation. The Loan shall be evidenced by a promissory note executed by an authorized representative of Recipient in the amount of the Principal Amount payable to the City (the "Note ") in the form attached hereto as Exhibit `B ". (a) Payment and Term. The Note shall bear interest at the rate of five percent per annum and the Principal Amount and all accrued interest shall be due and payable upon the sooner of five years from the effective date of the Note or default under the terms of the Note. (b) Security. The Note shall be secured by a UCC -1 Financing Statement encumbering personal property of Recipient at the Facility and a personal guaranty executed by Guarantor, each in the form attached hereto as Exhibits "C" and "D ", respectively. In connection with the UCC -1, Recipient warrants and represents that all personal property identified therein will be owned free and clear of any liens and encumbrances. (c) Loan Forgivable. Provided the Affiliate Contingencies as defined below have been satisfied and Recipient complies with the terms of this Agreement and the Note, the City shall forgive payment of the Principal Amount and all accrued interest and will release Recipient from all further obligations under the Note. In such event, the City will execute a release of the UCC -1 Financing Statement in a form suitable for recording and a release of the personal guaranty. (d) Disbursement of Loan Funds. Upon Completion of the Renovation, Recipient shall submit one or more paid invoices from its contractors performing work on the