Res 2005-091 - Laserfiche WebLink

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1.3 Loan Documents. "Loan Documents" means this Agreement, the Note, (as defined herein), the Deed of Trust (as defIned herein) and all other documents, instruments, certificates and agreements executed and/or delivered by JQH in connection with the Loan, all as may be amended, renewed, supplemented, modified, replaced and/or restated from time to time. 1.4 Default Rate. "Default Rate" means the lesser of 14.25% per annum or the Maximum Rate (as defIned herein). 1.5 Maximum Rate. "Maximum Rate" means the maximum lawful rate of interest which is to be contracted for, charged, taken, received or reserved by City in accordance with applicable laws in the State of Texas (or applicable United States federal law to the extent that such law permits City to contract for, charge, take, receive or reserve a greater amount of interest than under a Texas law), taking into account all Charges made in connection with the transaction evidenced by this Agreement and the other Loan Documents. As used hereunder, the term "Charges" shall mean all fees, charges and/or any other things of value, if any, contracted for, charged, taken, received or reserved by City in connection with the transactions which are the subject of this Agreement and the other Loan Documents, which are treated as interest under applicable law. 1.6 Permitted Encumbrances. "Permitted Encumbrances" means those items shown on Schedule B of the Mortgagee Title Policy (as described in Article III, Section 3.3, herein) reviewed and approved by City. ARTICLE II GRANT Provided all of the conditions precedent to the City's obligation to fund the Loan have been satisfied, City will make the Grant to JQH. The Parties agree that the proceeds of the Grant will be used to pay the portion of the purchase price of the Property which is not paid with proceeds of the Loan. Provided no Event of Default occurs hereunder, JQH shall have no obligation to repay the Grant. Upon the occurrence of a Event of Default under this Agreement, JQH must immediately repay the Grant to City upon City's demand for same. ARTICLE ill LOAN City hereby agrees to make the Loan to JQH subject and pursuant to the terms hereof and the other Loan Documents. The obligation to repay the Loan will be evidenced by the Note. The following items are conditions precedent to the City's obligation to fund the Loan: 3.1 Note. JQH executing and delivering an original counterpart of a Deed of Trust Note executed by JQH in form and content identical to that attached hereto as Exhibit "D" (said Deed of Trust Note together with all renewals, extensions and rearrangements thereof being hereafter referred to as the "Note"). 3.2 Deed of Trust. JQH executing and delivering an original counterpart of a Deed of Trust (And Security Agreement, Assignment of Rents and Financing Statement) duly acknowledged by a notary public, in form and content identical to that attached hereto as Exhibit "E" (said Deed of Trust, together CITY OF SAN MARcos-JQH LOAN AGREEMENT 779097.9 3